AFRICAN AUTOMOBILE LIMITED vs. TEMA OIL REFINERY [2011]DLSC2639

Date	2011-06-29
Suit No.	CIVIL APPEAL NO. J4/5/2011
Citation No.	[2011]DLSC2639

G.T. WOOD (MRS) CJ (PRESIDING)

J.DOTSE JSC

ANIN-YEBOAH JSC

P.BAFFOE-BONNIE JSC

B.T ARYEETEY JSC

ADJABENG AKRASI FOR THE APPELLANT

ADDO ATTUAH FOR THE RESPONDENT

[2011]DLSC2639
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													<main id="main" class="content" style="min-height: 60rem" >AFRICAN AUTOMOBILE LIMITED<o:p></o:p>vs.<o:p></o:p>TEMA OIL REFINERY<o:p></o:p>&nbsp;[SUPREME COURT, ACCRA]<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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CIVIL APPEAL NO. J4/5/2011&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;&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: 29TH JUNE, 2011<o:p></o:p>

</div>COUNSEL:&nbsp;&nbsp; <o:p></o:p>ADJABENG AKRASI FOR THE
APPELLANT.<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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ADDO
ATTUAH FOR THE RESPONDENT.<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;
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G.T. WOOD (MRS) CJ (PRESIDING) J.DOTSE JSC
ANIN-YEBOAH JSC P.BAFFOE-BONNIE JSC AND B.T ARYEETEY JSC<o:p></o:p>

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

</div>JONES DOTSE JSC:&nbsp;&nbsp; <o:p></o:p>This
is an appeal by the defendants/appellants/appellants, hereafter referred to as
the Defendants against the judgment of the Court of Appeal, dated 11th
March 2010, which also dismissed an earlier appeal filed by the Defendants
against the decision of the High Court dated 15th August 2008 in
favour of the Plaintiffs/Respondents/Respondents hereinafter referred to as
Plaintiffs.<o:p></o:p>The
defendants it must be noted lost the action at the High Court and although lost
again at the Court of Appeal, had a significant part of the awards reduced
downward in their favour.<o:p></o:p>BRIEF FACTS:-<o:p></o:p>The
plaintiffs herein won a tender to supply 600,000 litres of “marine mix” to the defendants for the manufacture of pre-mix fuel
for use by outboard motors.<o:p></o:p>The
contract document was tendered and marked as exhibit A and is dated 22nd
August, 2002. It is significant to note that the contract price for a litre of
the marine mix was denominated in Euro and was quoted at €1.63 per litre,
whilst Goil Oil Limited, the other competitor and supplier had their price
quoted as €1.71 to a litre and were contracted to supply 1,000,000 litres to
the defendants.<o:p></o:p>The
plaintiff proceeded to supply the marine mix to the defendants according to the
sample quality that they were supplied with by the defendants.<o:p></o:p>The
plaintiffs successfully made three (3) deliveries of the marine mix and were
paid as per the contract terms set out in exhibit A.<o:p></o:p>The
defendants however refused to accept the 4th delivery of the
plaintiffs and this resulted into series of meetings between the parties herein
aimed at resolving the differences i.e. reference meetings held on 16/2/2005
and 1/3/2006 respectively.<o:p></o:p>Eventually,
the plaintiffs were permitted to supply the 4th and other deliveries
to the defendants after almost two years of stoppage by the defendants arising
from the conduct of the defendants in rejecting the deliveries.<o:p></o:p>One
would have expected that, the supply and receipt of the subsequent deliveries
by the plaintiffs to the defendants would have ended matters, but that was not
to be. <o:p></o:p>The
refusal of the defendants to pay for the 4th and subsequent
deliveries as per the prices contained in exhibit A but on different rates as
contained in exhibit 3 led the plaintiffs to institute an action in the High
Court in which they claimed the following reliefs:-<o:p></o:p>a.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recovery
of the outstanding sum of euros 144,424.83 or its cedi equivalent being monies
due plaintiffs from the supply of marine mix to defendants and which defendants
have failed to pay after several persistent demands.<o:p></o:p>b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest
on the afore-said sum from 31st October 2006 to date of final
payment.<o:p></o:p>c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Damages
for breach of con</main>