[2008]DLCA7018 • November 27, 2008 • Court of Appeal
FABINA LIMITED vs. SHELL GHANA LIMITED
The Plaintiff (Fabina Limited) entered into a dealership agreement with the Defendant (Shell Ghana Limited) to operate a service station. The Plaintiff paid ¢70 million for fuel and ¢30 million for groceries as working capital. Subsequently, other filling stations opened nearby, and an armed robbery attack further reduced sales. The Defendant refused to allow Plaintiff's security guards to carry arms. The Plaintiff applied for and obtained an overdraft facility of ¢49.3 million, which was paid to the Defendant. The Defendant then terminated the dealership agreement and refused to supply fuel. The Plaintiff claimed wrongful termination and sought recovery of the working capital and overdraft sums with interest, as well as damages.
read moreJA APALOO, JA This is an appeal by the Plaintiff/Appellant against the judgment of the High Court, Accra delivered on 25th June 2007. The appellant had appealed on two grounds to wit, the trial judge erred in not ordering the Defendant to pay to the Plaintiff the working capital of the Plaintiff inclusive of interest; and that the quantum of damages awarded was on the low side. The facts leading to this action in the lower court are not complex. They have been clearly stated in the Plaintiff’s statement of claim. According to the Plaintiff the parties entered into a dealership agreement to operate the Defendants’ Legon Road service station owned by the Defendant. Arising out of the Agreement Plaintiff paid ¢70 million and additional ¢30 million for fuel and groceries respectively to the Defendant. It is the case of the Plaintiff that other filling stations were opened nearby by the Defendant and another Oil Marketing Company which negatively affected its business by drastic...