KLM ROYAL DUTCH AIRLINES vs. BIRDS, BEASTS AND REPTILES AGENCY [1967]DLHC1510

Date	1967-11-27
Suit No.
Citation No.	[1967]DLHC1510

AMISSAH J.A.

S. ANNANCY FOR THE PLAINTIFFS.

JAMES QUASHIE-IDUN FOR THE DEFENDANTS.

[1967]DLHC1510
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													<main id="main" class="content" style="min-height: 60rem" >KLM ROYAL DUTCH AIRLINES <o:p></o:p>vs. <o:p></o:p>BIRDS, BEASTS AND REPTILES AGENCY <o:p></o:p>[HIGH COURT, ACCRA]<o:p></o:p>[1967] GLR 674<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">

DATE:
27 NOVEMBER
1967.<o:p></o:p>

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

S. ANNANCY FOR THE PLAINTIFFS.<o:p></o:p>

JAMES QUASHIE-IDUN FOR THE DEFENDANTS.<o:p></o:p>

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

AMISSAH J.A.<o:p></o:p>

</div><o:p>&nbsp;</o:p>JUDGMENT OF AMISSAH J.A.<o:p></o:p>The issue
in this appeal turns within a very narrow compass. It is whether the learned
trial magistrate was right or not in construing a letter written by the
appellants, the Royal Dutch Airlines, as a guarantee for payment of the price
of live animals consigned by the respondents to Messrs. Animal Distributors,
Inc., a corporation in New York.<o:p></o:p><o:p>&nbsp;</o:p>Some time
in 1964, the respondents agreed to send animals to this corporation in New
York. According to the president-director of the respondents it was a condition
of the contract that the corporation should find somebody in Ghana to guarantee
them against payment for the animals or to send the money to the respondents,
presumably in advance of consignment. The guarantee was asked for, if indeed it
was, for the obvious purpose of providing someone here on whom the respondents
could fall if the corporation were to fail to pay for any animals sent them. If
this was the true position, and the learned magistrate held that it was, then
in my view it lends a distinctive colour to what took place subsequently.<o:p></o:p><o:p>&nbsp;</o:p>While
waiting for the guarantee the respondents received a letter dated 28 July 1964,
from the appellants, a resident company in Ghana, in the following terms:<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">“Dear
Sirs, <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">We are
holding a guarantee from Messrs. Animal Distributors, New York of $600 (£214
5s. 9d.) plus freight charges for a shipment of live animals. Would you kindly
advise us when your shipment will be ready so that we can inform consignee. We
are enclosing our time table for which you will note that the most convenient
flight is leaving Accra on Saturday morning at 08.40. Yours faithfully, K.L.M.
ROYAL DUTCH AIRLINES (Signed) A. de Jager General Manager for Ghana.”<o:p></o:p><o:p>&nbsp;</o:p>The
respondents, on the strength of this letter shipped some crates of live animals
by the appellants’ airline to the corporation in New York. The total value of
this shipment was £159 5s. 9d. Later upon demand the corporation sent a cheque
for $200.24 (two hundred dollars and twenty-four cents) or £71 2s. in payment
for the animals. The respondent therefore sued the appellants as the guarantors
of the corporation for the payment of the full price of the animals shipped.
The learned magistrate found that the letter quoted above was a guarantee and
found the appellants liable to make up the difference between the full price of
the animals and the money paid by the New York Corporation. It is from this
decision that the appellants have appealed.<o:p></o:p><o:p>&nbsp;</o:p>Mr. James
Quashie-Idun for the appellants has argued forcefully that the letter cannot be
construed as a guarantee. The appellants did not say in it that they were
guaranteeing the corporation in the payment of the price of the animals. On the
contrary the guarantee spoken of was a guarantee by the corporation to the
appellants themselves against contingencies that may arise during the
performance of the contract of carriage made between the appellants and the
corporation. In sum his argument is that the words “we are holding a guarantee
from Messrs. Animal Distributors, New York” can never mean “we are guaranteeing
Messrs. Animal Distributors, New York.”<o:p></o:p><o:p>&nbsp;</o:p>This
argument is not without its attractions. But the question which has to be
answered is this: What would an ordinary person reading this letter in the
light of </main>