[2018]DLSC174 • March 28, 2018 • Supreme Court •
DE SIMONE LIMITED vs. OLAM GHANA LIMITED
The Defendant employed the Plaintiff to construct specified factory structures under a written contract containing an arbitration clause. The Plaintiff sued the Defendant in the High Court alleging breach of contract. The Defendant applied to refer the matter to arbitration per the contract, but the Plaintiff opposed. The trial court rejected the Defendant's application as out of time under section 61 of the Alternative Dispute Resolution Act, 2010 (Act 798), finding the Defendant waived arbitration rights by filing a defence. However, the court on its own motion referred the parties to arbitration under section 75 of the Act. The Court of Appeal affirmed this decision. The Plaintiff appealed to the Supreme Court.
read moreThis appeal largely turns on a true and proper construction to be placed on sections 6(1) and 7(5) and to some extent section 54(2) of the Alternative Dispute Resolution Act, 2010 (Act 798) hereafter called the Act. The questions that arise for determination are two-fold, namely: (i) whether parties to a contract with an arbitration clause, can resort to court litigation in respect of matters covered by the arbitration clause; (ii) if they can, what standards should apply to determine the question. The brief facts of this case are as follows. The defendant employed the services of the Plaintiff to construct some specified structures for a factory at Kpone. The terms of engagement were reduced into writing and embodied in a contract which was duly executed by both parties. The plaintiff brought an action against the defendant at the High Court for certain reliefs which are not relevant to recall in this decision, suffice it to say that the basis for the action was the alleged violati...