SFARJILANI vs. ROYAL EXCHANGE ASSURANCE [1961]DLHC5505

Date	1961-12-08
Suit No.
Citation No.	[1961]DLHC5505

OLLENNU J.

I. AMISSAH-AIDOO (WITH HIM COLE) FOR THE PLAINTIFF.

J. QUASHIE-IDUN FOR THE DEFENDANT-COMPANY

[1961]DLHC5505
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													<main id="main" class="content" style="min-height: 60rem" ><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#548DD4">SFARJILANI <o:p></o:p><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#548DD4">vs. <o:p></o:p><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#548DD4">ROYAL EXCHANGE ASSURANCE<o:p></o:p><span style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#548DD4">&nbsp;[HIGH COURT, ACCRA]<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 1.0pt 0in">

<p class="MsoNormal" align="center" style="margin-bottom:5.0pt;text-align:center;
mso-pagination:none;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0in;mso-padding-alt:0in 0in 1.0pt 0in">[1961] GLR 768&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;DATE:<span style="font-size:10.0pt;line-height:
115%;font-family:&quot;Book Antiqua&quot;,&quot;serif&quot;;mso-fareast-font-family:&quot;Book Antiqua&quot;;
mso-bidi-font-family:&quot;Book Antiqua&quot;;color:#00B0F0"> 8TH DECEMBER, 1961.<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid black 1.5pt;
padding:0in 0in 0in 0in">

I.
AMISSAH-AIDOO (WITH HIM COLE) FOR THE PLAINTIFF.<o:p></o:p>

J.
QUASHIE-IDUN FOR THE DEFENDANT-COMPANY<o:p></o:p>

</div>CORAM: <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid black 1.5pt;
padding:0in 0in 0in 0in">

OLLENNU, J.<o:p></o:p>

</div><o:p>&nbsp;</o:p>JUDGMENT OF
OLLENNU J.<o:p></o:p>The plaintiff was insured with the British Commonwealth Insurance
Company Limited under a policy of insurance No. BB1123664. The
defendant-company, with the consent of the plaintiff, took over all the rights,
interests and liabilities of the said British Commonwealth Insurance Company
Ltd. under the said policy. The policy was in respect of the plaintiff’s
textile retail store situate on plot D.975/3, Boundary Road, Accra. The said
retail store of the plaintiff was broken into during the night of the 28th January,
1961, and some of the insured goods stolen therefrom. The plaintiff estimated
the loss he suffered in consequence of the burglary at £G3,874 11s. 7d., and
claims the said amount against the defendant-company under the virtue of the
indemnity under the said policy. The sum covered by the covered by the policy
is £G2,500. But the plaintiff pleaded that that original sum was increased to
£G4,500 in consideration of his agreeing to pay a premium of £G18 15s. Od.
instead of a premium of £G15 stipulated under the original policy.<o:p></o:p><o:p>&nbsp;</o:p>Clause 11 of the policy, exhibit E stipulates that in case of any
difference arising as to the amount of any loss or damage, arbitration shall be
a condition precedent to an action or suit upon the policy.<o:p></o:p>It was pleaded by the plaintiff in paragraph 8 of the statement of
claim that the defendant-company disputed the quantum of the loss or damage,
but have failed to comply with the request of the plaintiff that that dispute
be submitted to arbitration; and in paragraph 9 of the said statement of claim
it was pleaded that the defendant-company have agreed that the question of
liability should be submitted to the court for determination.<o:p></o:p>The defendant-company denied liability under the policy on the
grounds that the plaintiff has committed a breach of the express warranty in
the said policy and thereby discharged them from liability. The acts relied
upon as constituting the breach are that: (a) the plaintiff failed to produce
documentary evidence of the amount of value of the stock held immediately prior
to the happening of the loss, and (b) they failed to keep proper books,
accounts, stock sheets or stock books showing a true and accurate record of all
business transactions and stock in hand, etc.<o:p></o:p><o:p>&nbsp;</o:p>The defendant-company denied doing anything to frustrate
arbitration, and pleaded that it had been agreed - between them and the
plaintiff that the issue of liability should be determined first. Apart from
the evidence that the defendant-company denied liability on the policy, no
evidence was led by the plaintiff to establish his allegation that the
defendant-company did all they could to frustrate a reference of the issue of
amount of loss to arbitration. The following issues were set down for trial:<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">(a) Whether or
not the goods in the plaintiff’s retail store at Accra were insured with the
defendants in the sum of £G2,500 or £G4,500 at the material time;<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">(b) Whether or
not the plaintiff is guilty of any breach of warranty of the said policy, and<o:p></o:p><p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:5.0pt;
margin-left:.5in;text-align:justify;mso-pagination:none;border:none;mso-padding-alt:
31.0pt 31.0pt 31.0pt 31.0pt;mso-border-shadow:yes">(c) Whether or
not the defendants are liable to indemnify the plaintiff under the policy of
insurance, and if so, in what sum.<o:p></o:p>