DE GRAFT-JOHNSON AND ANOTHER vs. GHANA COMMERCIAL BANK AND ANOTHER [1973]DLSC2375

Date	1973-05-29
Suit No.
Citation No.	[1973]DLSC2375

ABOAGYE J.

AKYEA-DJAMSON FOR THE THIRD PARTY.

E. D. KOM FOR THE DEFENDANTS.

[1973]DLSC2375
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													<main id="main" class="content" style="min-height: 60rem" >DE GRAFT-JOHNSON AND ANOTHER <o:p></o:p>vs. <o:p></o:p>GHANA COMMERCIAL BANK AND ANOTHER <o:p></o:p>[HIGH COURT,
ACCRA]<o:p></o:p>&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[1973]
2 GLR 100<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0in 0in 0in 0in">

DATE:
29 MAY 1973.<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">

AKYEA-DJAMSON FOR THE THIRD PARTY.<o:p></o:p>

E. D. KOM 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">

ABOAGYE J.<o:p></o:p>

</div><o:p>&nbsp;</o:p>JUDGMENT OF ABOAGYE J.<o:p></o:p>The
plaintiffs herein have sued the defendants for damages for the death of one Mr.
K.M. Eyeson, resulting from the alleged negligence on the part of the driver of
the defendants land rover No. GL 9331. The defendants’ said vehicle had been
insured with the third-party under insurance policy No. 1498/CH at the time of
the accident and the defendants have claimed indemnity against the third-party
in the event of the plaintiffs’ action succeeding against them. After third
party directions have been given, the third party has brought this application
under section 8 of the Arbitration Act (Act 38), and Order 72, r. 1 of the
Supreme [High] Court (Civil Procedure) Rules, 1954 (L.N. 140A), for a stay of
the third-party proceedings and for reference of the difference between them
and the defendants to arbitration in terms of condition (8) of the insurance
policy which requires that all differences arising out of the policy shall be
referred to an arbitration and that an award by such arbitration shall be a
condition precedent to any right of action against the third-party.<o:p></o:p><o:p>&nbsp;</o:p>The late
K. M. Eyeson was, until his death, a branch manager of the defendant bank and
he died when he was being driven back to his station in one of the defendants’
vehicles. Although no statement of defence has been filed by, or on behalf of,
the third-party, from paragraphs (8) and (9) of their affidavit in support of
their application they deny any liability to the defendants on the ground that
the deceased died in the course of his employment and by section 11 of the
policy liability is excluded in such cases. Section 11 (a) quoted in the
supporting affidavit reads:<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">“1. (a)
Subject to the limits of liability the company will indemnify the insured in
the event of accident caused by or arising out of the use of the motor car
against all sums including claimant’s costs and expenses which the insured
shall become legally liable to pay in respect of:<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) death
or bodily injury to any person except where such death or injury arises out of
and in the course of the employment of such person by the insured and excluding
liability to any person being a member of the insured’s household who is a
passenger in the motor car unless such person is being carried by reason of or
in pursuance of a contract of employment.”<o:p></o:p><o:p>&nbsp;</o:p>A dispute
as to whether or not the late K. M. Eyeson was, at the time of the accident, on
the defendants’ vehicle in the course of his employment has arisen between the
defendants and the third-party and either of them is entitled to apply for a
stay of the proceedings between them and for reference of the dispute to
arbitration under section 8 of the Arbitration Act, 1961 (Act 38). Section 8 of
the Act provides:<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">“If any
party to an arbitration agreement, or any person claiming through him,
commences any legal proceedings in any court against any other party to the
agreement, or any person claiming through him, in respect of any matter agreed
to be referred, any party to those legal proceedings may apply to that court to
stay the proceedings, and that court, if satisfied that there is no sufficient
reason why the matter should not be referred in accordance with the agreement,
and that the applicant was, at the time when the proceedings were commenced,
and still remains, ready and willing to do all things necessary to the proper
conduct of the arbitration, may make an order staying the proceedings.”<o:p></o:p><o:p>&nbsp;</o:p>