DELMAS AGENCIES (GH) LTD vs. FOOD DISTRIBUTORS INTERNATIONAL LTD

In October 1993, the Plaintiffs (Food Distributors International Ltd) ordered 7034 cartons of yams from Ghanaian suppliers for export to the USA. The Defendants (Delmas Agencies) were contracted as shipping agents to ship the yams from the port of Tema. Due to negligence, the Defendants left 6234 cartons uncovered at the port during heavy rain, causing the yams to be soaked and rendered unfit for export. The Plaintiffs claimed damages for the value and loss of profits on these yams. The Defendants denied responsibility for care and custody of the yams and contended the Plaintiffs failed to mitigate losses by not repacking or selling the yams locally. The High Court ruled in favor of the Plaintiffs, awarding damages and interest. The Defendants appealed to the Court of Appeal, which partially reduced damages but upheld liability. The Defendants then appealed to the Supreme Court.

DR S. TWUM J.S.C: This is an appeal from the judgment of the Court of Appeal dated 24th March 2006. It substantially confirmed the judgment of the High Court against which the appeal to the Court of Appeal was lodged. The appellants in this Court were the defendants in the High Court suit and for ease of reference I will refer to them in this opinion as the defendants. The respondents, who were plaintiffs in the High Court, will also be known as plaintiffs in this opinion. The History On 20th April 1994, the Plaintiffs filed a writ of summons in the High Court, Tema, against the defendants, claiming (a) an order compelling the defendant to pay to the Plaintiffs the value and loss of profits on 6234 cartons of yams out of the total of 7034 cartons which defendants accepted and took custody of with the view of shipping the same to Plaintiffs at Norfolk, Virginia, U.S.A. but which said carton of yams Defendants negligently and in breach of duty left in the open and were soaked by ra...