[1972]DLHC2189March 8, 1972High Court

AGBEMASHIOR AND OTHERS vs. STATE INSURANCE CORPORATION AND OTHERS

On 17 July 1967, the plaintiffs were injured in a motor accident and sought compensation from the insurance company of the defaulting driver. The third defendant, a registered claims agent, offered to pursue the claims on behalf of the plaintiffs and engaged the second defendant, a lawyer, to assist. The insurance company (first defendant) paid N¢3,900.00 to the second defendant for onward payment to the plaintiffs. The second defendant paid N¢3,800.00 to the third defendant, who was supposed to distribute the money to the plaintiffs. However, the third defendant failed to pay the plaintiffs despite repeated demands and was later found to have dishonestly appropriated the funds. The plaintiffs sued the second and third defendants jointly and severally for the unpaid compensation.

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This is an action brought against the claims manager of an insurance company, a lawyer in private practice and a registered claims agent. They were sued jointly and severally and the endorsement on the writ of summons reads as follows: “The plaintiffs’ claim is for a total amount of N¢3,900.00 (three thousand nine hundred new cedis) jointly and severally made against the three defendants, following a motor accident on 17 July 1967, which caused plaintiffs injuries for which the first defendant as insurance agent allegedly paid N¢3,900.00 compensation to the second defendant for onward payment to the plaintiffs. The second defendant alleges having paid to the third defendant N¢3,800.00 for onward payment to the plaintiffs, but the said payment has not been effected or at all despite repeated demands on the defendants by the plaintiffs.” The first plaintiff gave evidence for himself and on behalf of the other two plaintiffs. He stated that on 17 July 1967, he and the other t...