[2005]DLCA7509 Login to Read Full Case <span style="font-size: 18px !important;"><p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:115%"><b><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua",serif;color:#00B0F0">ROBERT K. NARTEY<o:p></o:p></span></b></p><p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:115%"><i><span style="font-size:10.0pt; line-height:115%;font-family:"Book Antiqua",serif">(PLAINTIFF/RESPONDENT)<o:p></o:p></span></i></p><p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:115%"><b><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua",serif;color:#00B0F0">vs.<o:p></o:p></span></b></p><p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:115%"><b><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua",serif;color:#00B0F0">HSBC EQUATOR BANK P/C & ANOR.<o:p></o:p></span></b></p><p class="MsoNormal" align="center" style="margin-bottom:12.0pt;text-align:center; line-height:115%"><i><span style="font-size:10.0pt;line-height:115%;font-family: "Book Antiqua",serif">(DEFENDANTS/APPLTS.)<o:p></o:p></span></i></p><p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:115%"><span style="font-size:10.0pt;line-height: 115%;font-family:"Book Antiqua",serif">[COURT OF APPEAL, ACCRA]<o:p></o:p></span></p><p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:115%"><b><span style="font-size:10.0pt; line-height:115%;font-family:"Book Antiqua",serif">CIVIL APPEAL NO. H1/138/2005.</span></b><span style="font-size:10.0pt;line-height:115%; font-family:"Book Antiqua",serif"> DATE: 10TH JUNE, 2005<o:p></o:p></span></p><div style="mso-element:para-border-div;border-top:solid windowtext 1.5pt; border-left:none;border-bottom:solid windowtext 1.5pt;border-right:none; padding:1.0pt 0cm 1.0pt 0cm"> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: 115%;border:none;mso-border-top-alt:solid windowtext 1.5pt;mso-border-bottom-alt: solid windowtext 1.5pt;padding:0cm;mso-padding-alt:1.0pt 0cm 1.0pt 0cm"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua",serif">CORAM:<o:p></o:p></span></b></p> <p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;line-height: 115%;border:none;mso-border-top-alt:solid windowtext 1.5pt;mso-border-bottom-alt: solid windowtext 1.5pt;padding:0cm;mso-padding-alt:1.0pt 0cm 1.0pt 0cm"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif">AKAMBA J.A. (PRESIDING), DOTSE J.A., APALOO J.A.<o:p></o:p></span></p> </div><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt; padding:0cm 0cm 1.0pt 0cm"> <p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt; text-align:center;line-height:115%;border:none;mso-border-bottom-alt:solid windowtext 1.5pt; padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm"><b><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif">JUDGMENT<o:p></o:p></span></b></p> </div><p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;text-align: justify;line-height:115%"><b><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif">APALOO J.A. <o:p></o:p></span></b></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif">This is an appeal from the ruling of the High Court, Accra dated 8th July, 2004 the ruling which formed the basis of this appeal emanated from an application for judgment under Order 25 rule 4 of L.N. 140A. <o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif">In a writ of summons accompanied by a statement of claim the Plaintiff/Respondent sued for the following reliefs:<o:p></o:p></span></p><p class="MsoNormal" style="margin-left:36.0pt;text-align:justify;line-height: 115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif"> (a) 1. An order compelling the Defendants jointly and severally to negotiate with the Plaintiff a redundancy payment acceptable to the Plaintiff or<o:p></o:p></span></p><p class="MsoNormal" style="margin-left:36.0pt;text-align:justify;line-height: 115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif"> 2. Alternatively, the Court determining a redundancy payment appropriate for Plaintiff's status and for the number of 6 years served.<o:p></o:p></span></p><p class="MsoNormal" style="margin-left:36.0pt;text-align:justify;line-height: 115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif"> (b) An order compelling the Defendant jointly and severally to pay to Plaintiff any amount decided or determined by the Court as reasonable redundancy payment commensurate with Plaintiffs' status and period served. <o:p></o:p></span></p><p class="MsoNormal" style="margin-left:36.0pt;text-align:justify;line-height: 115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif">(c) An order restraining the Defendants from selling any of their assets or assigning or entering into any novation agreements with any Ghanaian debtors or transferring monies from its bank accounts in Ghana or taking any steps to wind-up its operations in Ghana pending the hearing determination and payment of a redundancy payment to the Plaintiff.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif"> Both Defendants appeared to the writ and filed their defences refuting and contesting Plaintiff's claim. <o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif">The simple facts upon which this action was mounted in the court below are not in dispute. The Plaintiff who had worked with the 1st Defendant Company as Asst. Vice President and its country Manager for 6 years became aware that the 1st Defendant in early 2003 began the transfer of its facilities and all other assets and liabilities to the HSBC Banking Company in South Africa. Indeed the 1st and 2nd Defendants are a U.K. and a US incorporated companies respectively. While the 1st Defendant has registered in Ghana as an external company, the 2nd Defendant provided support service for the former. The Judgments of the Superior Courts 11571 Copyright © DataCenta Ltd. recruitment and appointment of the Plaintiff as Assistant Vice President was made by 2nd defendant in 1997. He was to work as employee of the 1st Defendant and he did so from 5th January 1998 till 27th January 2004.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif"> When the 1st Defendant commenced restructuring of its business it became necessary for the 1st Defendant to shut down its Accra Office thus rendering its employees redundant. The 1st Defendant negotiated and concluded with its employees a redundancy package in accordance with Ghanaian law as no provision was made for its application in the employment contracts. The 1st Defendant pleaded that all the terms between it and the Plaintiff had been agreed and concluded, including a flat payment of $1,500 in lieu of an outplacement programme that the Plaintiff was demanding, which was unavailable in Ghana. It is the case of the 1st Defendant further, that when the agreed terms were reduced into writing the Plaintiff simply refused to sign the agreement. He reasoned at that time that whilst the agreement provided that Ghana law governed the agreement between the parties, he would prefer United States law to be the governing contract, and that if the law of Ghana was to be the governing law, then he would demand six months salary for every year served in the employment of the 1st Defendant, as his severance pay. <o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif">The action then took a certain twist when the plaintiff by a motion under Order 25 rule 4 and the inherent jurisdiction of the trial court sought to strike out the statements of defence as disclosing no reasonable defence to the claim and prayed for judgment for the Plaintiff. The Defendants resisted this application by their affidavit filed in opposition to the motion. Before the motion could be heard the 2nd defendant also applied by a motion to dismiss the action against it on the ground that the Plaintiff had no reasonable cause of action against it. Both motions were argued before the trial court which determined the applications as follows:—<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif"> 1. In respect of 2nd Defendant's motion to dismiss Plaintiff action against it, the court held that the inclusion of the 2nd Defendant as a party was necessary to enable the court properly and effectually determine the rights of the parties. <o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif">2. With regard to the Plaintiff's application to strike out the statements of defence the court held that in its opinion the only issue in dispute was the period to be used in calculating Plaintiff's severance pay and the determination of that, the Judge maintained did not require evidence. The Judge stated that the Plaintiff as a senior officer was entitled to more months in a year than his subordinates and therefore awarded four months salary for each year of service accordingly. The award came to $127,296.00.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif"> In their Notice of Appeal the Defendants canvassed the following grounds of appeal being errors on the part of the trial judge. <o:p></o:p></span></p><p class="MsoNormal" style="margin-left:36.0pt;text-align:justify;line-height: 115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua",serif">1. The learned trial judge erred in striking out the defence of the Defendants as disclosing no reasonable defence and in entering judgment for the Plaintiff when the pleadings fi