[2012]DLSC6740 Login to Read Full Case <span style="font-size: 18px !important;"><p class="MsoNoSpacing" align="center" style="text-align:center;line-height:115%"><b><span style="font-family:"Book Antiqua","serif"; color:#00B0F0">GEORGIA HOTEL LIMITED<o:p></o:p></span></b></p><p class="MsoNoSpacing" align="center" style="text-align:center;line-height:115%"><b><i><span style="font-size: 10pt; line-height: 115%; font-family: "Book Antiqua", serif;">(</span></i></b><i><span style="font-size: 10pt; line-height: 115%; font-family: "Book Antiqua", serif;">PLAINTIFF/RESPONDENT/APPELLANT<b>)<o:p></o:p></b></span></i></p><p class="MsoNoSpacing" align="center" style="text-align:center;line-height:115%"><b><span style="font-family:"Book Antiqua","serif"; color:#00B0F0">vs.<o:p></o:p></span></b></p><p class="MsoNoSpacing" align="center" style="text-align:center;line-height:115%"><b><span style="font-family:"Book Antiqua","serif"; color:#00B0F0">SILVER STAR AUTO LIMITED<o:p></o:p></span></b></p><p class="MsoNoSpacing" align="center" style="text-align:center;line-height:115%"><i><span style="font-size:10.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">(DEFENDANT/APPELLANT/RESPONDENT.)<o:p></o:p></span></i></p><p class="MsoNoSpacing" align="center" style="text-align:center;line-height:115%; tab-stops:113.25pt center 3.25in"><span style="font-size:10.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">[SUPREME COURT, ACCRA]<o:p></o:p></span></p><p class="MsoNoSpacing" align="center" style="text-align:center;line-height:115%"><b><span style="font-size:10.0pt;line-height: 115%;font-family:"Book Antiqua","serif""><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" align="center" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;line-height:115%;border:none;mso-border-bottom-alt:solid windowtext 1.5pt; padding:0in;mso-padding-alt:0in 0in 1.0pt 0in"><b><span style="font-size:10.0pt;line-height:115%;font-family:"Book Antiqua","serif"">CIVIL APPEAL NO. J4/34/2012 </span></b><span style="font-size:10.0pt;line-height:115%;font-family:"Book Antiqua","serif"">DATE<b>: </b>4TH DECEMBER, 2012<b><o:p></o:p></b></span></p> </div><p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;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:12.0pt;line-height:115%;font-family:"Book Antiqua","serif""><o:p></o:p></span></p><p class="MsoNoSpacing" style="text-align:justify;line-height:115%">ADUMUA-BOSSMAN FOR APPELLANT. <o:p></o:p></p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt; padding:0in 0in 1.0pt 0in"> <p class="MsoNoSpacing" 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">FUI TSIKATA WITH MIKE DZAKU FOR RESPONDENT.<o:p></o:p></p> </div><p class="MsoNoSpacing" style="text-align:justify;line-height:115%"><b><span style="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="MsoNoSpacing" style="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-family:"Book Antiqua","serif"">ANSAH J.S.C. (PRESIDING), ADINYIRA (MRS) J.S.C., DOTSE J.S.C., GBADEGBE J.S.C., AKOTO-BAMFO (MRS) J.S.C.<o:p></o:p></span></p> </div><p class="MsoNoSpacing" style="line-height:115%"><b><span style="font-family:"Book Antiqua","serif""><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="MsoNoSpacing" align="center" style="text-align:center;line-height:115%; border:none;mso-border-bottom-alt:solid windowtext 1.5pt;padding:0in; mso-padding-alt:0in 0in 1.0pt 0in"><b><span style="font-family:"Book Antiqua","serif"">JUDGMENT<o:p></o:p></span></b></p> </div><p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt;text-align: justify;line-height:115%"><b><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">SOPHIA ADINYIRA (MRS.) JSC <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"">In October 2004 Hotel Georgia Limited, a limited liability company engaged in hotel and hospitality industry in Kumasi and Accra, the Plaintiff/Respondent/Appellant herein, (hereinafter plaintiff company), purchased for the use of its managing director, a brand new Mercedes Benz E240 Avant-garde at a cost of €58,500 from the Silver Star Limited, the sole dealer of German-made Mercedes Benz vehicles in Ghana, the Defendant/Appellant/Respondent herein (hereinafter defendant company)<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 September 2006 the vehicle broke down at Ejisu en route to Kumasi after minor repairs at the workshop of the defendant company at Tema. The plaintiff company had the vehicle towed to Kumasi and inspected by a private mechanic who declared the car engine defective. After that the plaintiff company brought a claim against the defendant company alleging that the vehicle suffered from latent defects. <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 company claimed by its writ of summons filed on 15 February 2007: <o:p></o:p></span></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">1. The replacement of Mercedes Benz E240 Avant-garde vehicle…with a brand new one, by reason of the latent defect in the said vehicle which the plaintiff bought from the defendant in October 2004. <o:p></o:p></span></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">2. In the alternative, the payment of the full replacement value of a brand new Mercedes Benz saloonE240 Avant-garde to the plaintiff by the defendant by reason of the wrongful sale of the wrongful sale of the defective brand new vehicle to it. <o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;text-indent:.5in;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">3. Loss of use. <o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;text-indent:.5in;line-height:115%"><span style="font-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">4. Costs including solicitors professional fees. <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"">On 28 July the High Court delivered judgment in favour of the plaintiff company for recovery of €58,500, interest at the prevailing bank rate from October 2006 to the date of payment, $10,000 for loss of use and costs of GH2,000. This decision was reversed on appeal on 2 December 2010. <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 company appeals on the grounds that: <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"">a) On the agreed evidence by the appellant as expressed in Exhibit CE1 the Court of Appeal misinterpreted what constitutes a latent manufacturer's defect as it applied to the brand new Mercedes Benz E240NAvante-garde the Appellant bought from the respondent. The misinterpretation and misapplication of what constitutes a latent defect has occasioned the Appellant a substantial miscarriage of justice. <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"">b) The Court erred when it relied on suspicion and conjecture to find that the fault on the car was caused by the Appellant's agent. <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"">c) The judgment is against the weight of evidence. <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"">What is a latent manufacturer's defect? <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"">According to Black's Law Dictionary 8th Edition relied on by the trial judge, a hidden or latent inherent defect is defined as 'a product imperfection that is not discoverable by reasonable inspection" A manufacturing defect is defined as an "imperfection in a product that departs from its intended design." According to the High Court judgment, the imperfection must thus exist at the delivery of the product. The Court took into account the implied fitness for which the vehicle was intended as well. Thus, a new vehicle should be free from defects at the time it is delivered from seller to buyer. <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 Court of Appeal considered what Black's Law Dictionary, 6th Edition defines a latent defect as a "hidden or concealed defect, one which could not be discovered by reasonable or customary observation or inspection; one not apparent on the face of the goods, product or document… Defect which the owner has no knowledge or which the owner has no knowledge of1 as held in Bichl VRS Poinier;"2 The Appeals Court referred to the case of US vs. Lembke Const Co. Inc, CA3 ; where the term was described as "one which cannot be discovered by observation or inspection made with ordinary care.4 <o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify;line-height:115%"