[2008]DLSC2435 Login to Read Full Case <span style="font-size: 18px !important;"><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif";color:#2E74B5;mso-themecolor:accent1; mso-themeshade:191">C.C.W. LIMITED<o:p></o:p></span></b></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif";color:#2E74B5;mso-themecolor:accent1; mso-themeshade:191">vs.<o:p></o:p></span></b></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif";color:#2E74B5;mso-themecolor:accent1; mso-themeshade:191">ACCRA METROPOLITAN ASSEMBLY<o:p></o:p></span></b></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><span style="font-size:10.0pt;line-height:115%;font-family:"Book Antiqua","serif"">[SUPREME COURT]<o:p></o:p></span></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><span style="font-size:10.0pt;line-height:115%;font-family:"Book Antiqua","serif"">CIVIL APPEAL NO. J4/5/2007<o:p></o:p></span></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="right" style="text-align:right;line-height:115%; border:none;mso-border-bottom-alt:solid windowtext 1.5pt;padding:0in; mso-padding-alt:0in 0in 1.0pt 0in"><span style="font-size:10.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">DATE: 13TH FEBRUARY, 2008.<o:p></o:p></span></p> </div><p class="MsoNormal" style="line-height:115%"><b><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">COUNSEL</span></b><span style="font-size:10.0pt;line-height:115%;font-family:"Book Antiqua","serif""><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""> MR. STANLEY AMARTEIFIO FOR APPELLANTS.<o:p></o:p></span></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" style="text-align:justify;line-height:115%;border:none; mso-border-bottom-alt:solid windowtext 1.5pt;padding:0in;mso-padding-alt:0in 0in 1.0pt 0in"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">MR. TONY LITHUR FOR RESPONDENTS.<o:p></o:p></span></p> </div><p class="MsoNormal" style="text-align:justify;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">CORAM: <o:p></o:p></span></b></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" style="text-align:justify;line-height:115%;border:none; mso-border-bottom-alt:solid windowtext 1.5pt;padding:0in;mso-padding-alt:0in 0in 1.0pt 0in"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">MISS. AKUFFO J.S.C.(PRESIDING), DR. DATE BAH J.S.C., ANSAH J.S.C., ANINAKWAH J.S.C., ASIAMAH J.S.C.<o:p></o:p></span></p> </div><p class="MsoNormal" style="text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif""><o:p> </o:p></span></p><p class="MsoNormal" align="center" style="text-align:center;line-height:115%"><b><u><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif"">JUDGMENT<o:p></o:p></span></u></b></p><p class="MsoNormal" style="text-align:justify;line-height:115%"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif""> DR. DATE-BAH, J.S.C. <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"">The facts<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 Plaintiff is a limited liability company incorporated under the laws of Ghana. It carries on the business of waste collection, disposal and management and also provides landfill services. The Defendant is a statutory body whose existence as a District Assembly was continued by the Local Government Act 1993 (Act 462). By an agreement of 4th December 1997, the Defendant engaged the Plaintiff to render waste disposal services, including landfill services, within the city of Accra. The agreement was to last 7 years from the date of its execution. The agreement further provided that both Parties had the option of renewing it for a further 7 years. The Plaintiff averred that it commenced work under the agreement on 13 July 1999 and continued to perform its obligations under it until 29th June 2001, when the Defendant terminated the agreement by a letter of that date. The Plaintiff contends that this termination constituted a breach of contract and has therefore brought this action, by a Writ dated 25th June 2002, claiming the following reliefs:<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""> <o:p></o:p></span></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">“(a) An order compelling the Defendant to pay to the Plaintiff the sum of the equivalent in cedis of US $ 10,207,718.51 at the prevailing forex bureau rate on the date of actual payment being the cost of services provided by the Plaintiff for the Defendant pursuant to the Service Agreement executed by the parties on 4th December 1997 less any amount adjudged upon independent valuation to be owing to the Defendant for the use by the Plaintiff of the Defendant’s waste management depot.<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">(b) Interest on the sum mentioned in paragraph (a) above from June 28, 2001 until the date of judgment;<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">(c) Damages for breach of contract;<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">(d) Loss of profit;<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">(e) Further or other relief;<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">(f) Costs.”<o:p></o:p></span></i></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 Defendant, in response, challenged the enforceability of the agreement, pleading in its Amended Statement of Defence that the agreement was executed under duress and in breach of section 67(1) of the Defendant’s Standing Orders and sections 39, 87 and 88 of the Local Government Act, 1993. The Defendant further contended that the Memorandum of Understanding which gave rise to the agreement and the decision of the Defendant to hold shares in the Plaintiff Company was never debated and approved by the General Assembly of the Defendant, as required by law. The Defendant maintained that it was not obliged to continue operating under an illegal contract which contained unconscionable terms and conditions. Furthermore, the Defendant contended that the agreement sued on could only become effective after the execution of the Financing Agreement between the Ministry of Finance and the Defendant, as stated in paragraph 3 of the Recitals of the Agreement and defined in clause 1.16 of the agreement, with prior Parliaamentary approval and in accordance with the Loans Act 1970 (Act 335). The Defendant also pleaded in its Amended Statement of Defence that prior Parliamentary approval was required for the grant of a sovereign guarantee with respect to all financial obligations of the Defendant, but this had not been obtained.<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 statutory provisions referred to above and other related relevant statutory provisions are set out below.<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""> Section 39 of the Local Government Act:<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""> <o:p></o:p></span></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">“(1) A District Assembly shall have a district tender board which shall advise the Assembly on the award of contracts in the district that<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:1.0in;text-align:justify;line-height: 115%"><i><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif""> (a) are to be financed exclusively from the resources of the Assembly; or<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:1.0in;text-align:justify;line-height: 115%"><i><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif"">(b) have been approved by the Government and are not in excess of the limits determined by the Minister responsible for Finance.<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">(2) A district tender board shall comprise of the persons determined by the Minister by legislative instrument.<o:p></o:p></span></i></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">(3) A person appointed as a member of a district tender board shall within three months after the appointment, declare the assets of that person to the Auditor-General.<o:p></o:p></spa