ELITE MINERALS GHANA LTD vs. MANTRAC GHANA LTD

The appellant, a mining company engaged in alluvial mining, purchased ten CAT 329 DL excavators from the respondent, the sole authorised dealer of CAT equipment in Ghana, using financing from Stanbic Bank. Eight of the machines developed repeated final-drive failures within a relatively short period. The appellant alleged that the final drives and Duo Cone seals had latent defects, rendering the excavators unfit for the mining purpose for which they were bought, and claimed loss of revenue and additional interest paid after restructuring its bank facility. The respondent denied liability and contended that the failures were caused by misuse, poor maintenance, operation in muddy conditions, and use of non-recommended oil. Portion in judgment: opening factual narrative beginning “The Appellant’s case can be summarized as follows…” and the respondent’s defence beginning “Naturally, the Respondent has denied the Appellant’s claims…”.

DODOO, JA (MRS) The Plaintiff/Appellant/Respondent (hereinafter referred to as the Appellant) commenced the instant suit against the Defendant/Respondent/Cross-Appellant (hereinafter referred to as the Respondent) claiming the following reliefs: a) A declaration that the Defendant has breached the Parties’ agreement by failing to fulfil its obligations under the contract by the delivery of CAT excavator machinery with serial numbers DJF00866, DJF00755, DJF00864, DJF00867, DJF01072, MNB01283, DJF00850 and DJF00853 with the final drives which had latent defects or not fit for the purpose for which they were intended. b) A declaration that the Defendant, by virtue of the breach of the Parties’ agreement, has occasioned on the Plaintiff a loss of revenue that would have accrued to the Plaintiff for the use of the CAT excavator machines in the sum of Two Million, Two Hundred and Seventy-Six Thousand and Eight Hundred and Twenty United States Dollars (US$2,276,820.00). c) A declarati...