JESCAN CONSTRUCTION LTD. vs. HIPPO LIMITED MERCHANT BANK (GH) LTD. AND HIPPO LIMITED vs. JESCAN CONSTRUCTION LTD KIMATHI M. DAKE MERCHANT BANK (GH.) LTD. [2015]DLCA8305

JESCAN CONSTRUCTION LTD. vs. HIPPO LIMITED MERCHANT BANK (GH) LTD. AND HIPPO L... [2015]DLCA8305

Date	2015-05-07
Suit No.	SUIT NO.: HI/144/2013
Citation No.	[2015]DLCA8305

OWUSU J. A (PRESIDING)

OFOE J.A.

TORKORNOO J. A.

ANDREW DANIELS FOR DEFENDANTS/RESPONDENT

MRS. P. AKYEA FOR 1ST DEFENDANT

[2015]DLCA8305
																																						<div class="restriction-wrapper">
														<div class="container-lg">
															<div class="row">
																<div class="col-md-12 restricted-content">
																	<div class="restricted-content-img-wrapper">
																		<div class="lock-icon bounce-7">
																			<img class=""
																				src="https://www.dennislawgh.com/dl-assets/dl-images/lock-content.png"
																				alt="Subscription based content">
																		</div>
																	</div>
																	 
																		<a href="https://www.dennislawgh.com/login"
																		class="btn btn-primary btn-lg"
																		style="font-family: 'open sans'; text-transform: capitalize; border-radius: 8px"> 
																		Login to Read Full Case </a>
																	 
																	
																</div>
															</div>
														</div>
													</div>
													<main id="main" class="content" style="min-height: 60rem" >JESCAN CONSTRUCTION LTD.<o:p></o:p>(PLAINTIFF/RESPONDENT)<o:p></o:p><span lang="EN-GB" style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,serif;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#00B0F0">vs.<o:p></o:p>HIPPO LIMITED &nbsp;&nbsp; MERCHANT
BANK (GH) LTD.<o:p></o:p>(DEFENDANTS/COUNTERCLAIMANTS)<o:p></o:p>AND<o:p></o:p>HIPPO LIMITED<o:p></o:p>(COUNTERCLAIMANT/APPELLANT)<o:p></o:p><span lang="EN-GB" style="font-size:12.0pt;line-height:115%;font-family:&quot;Book Antiqua&quot;,serif;
mso-fareast-font-family:&quot;Book Antiqua&quot;;mso-bidi-font-family:&quot;Book Antiqua&quot;;
color:#00B0F0">vs.<o:p></o:p>JESCAN CONSTRUCTION LTD KIMATHI
M. DAKE<o:p></o:p>( DEFENDANTS)<o:p></o:p>MERCHANT BANK (GH.) LTD.<o:p></o:p>(DEFENDANT/RESPONDENT)<o:p></o:p>[COURT OF APPEAL, KOFORIDUA]<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0cm 0cm 1.0pt 0cm">

SUIT NO.: HI/144/2013&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: 7TH MAY, 2015<o:p></o:p>

</div>ANDREW DANIELS FOR DEFENDANTS/RESPONDENT<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
padding:0cm 0cm 1.0pt 0cm">

MRS. P.&nbsp; AKYEA FOR 1ST DEFENDANT<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:0cm 0cm 1.0pt 0cm">

OWUSU
J. A (PRESIDING), OFOE J.A., TORKORNOO J. A.<o:p></o:p>

</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <o:p></o:p><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;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm">JUDGMENT<o:p></o:p>

</div>TORKORNOO, J. A:<o:p></o:p>This
is an appeal against a ruling dismissing an application for summary judgment
against Merchant Bank (referred to as the Bank hereinafter). The Plaintiff
Respondent (referred to as Respondent
hereinafter) in this appeal was employed as a contractor to construct two warehouses
and other facilities in two lots for the 1st Defendant /Counterclaimant/Appellant
(Appellant) valued at a total figure
of GH¢4,000,000.00. The contract period for the warehouses and other facilities
was September 2011 to March 2012 and September 2011 to January 2012 respectively.<o:p></o:p>The
contract required that the contractor provide advance payment guarantees for
mobilization payments given to the contractor. The contractor was also to
provide performance securities for the due execution of the contracts. <o:p></o:p>Two advance
payment guarantees were issued by the Bank on 5th September 2011 in
support of the Contractor. These guarantees were in the sums of GH¢227,317.93
and GH¢468,682.07 respectively and were to expire on 4th July 2012
and 4th September 2012 respectively. (See pages 23 to 26 of the Record of Appeal. &nbsp;Two performance guarantees were also issued on
5th September 2011 in the sums of GH¢125,658.96 and GH¢274,341.00
respectively and were to expire by 4th July 2012 and 4th
September 2012 (pages 192 to 195 of the ROA). <o:p></o:p>On 2nd
February 2012, the project manager terminated the respondent’s contract for ‘non performance, mismanagement and an
uncooperative attitude by the contractor’. The project manager certified
that the Respondent owed the Appellant GHC 300,705.83 as the difference between
work executed and the advance and supplementary loans given to the contractor
(page 34 of the ROA). <o:p></o:p>On
March 14 2012 the appellant called on the bank to pay the determined sum of GH¢300,705.83
&nbsp;being part of the sums secured on the
advance payment guarantee (page 88 of the ROA). The Rspondent’s reaction to the
call on the bank was to sue in the High Court for an injunction to restrain the
Appellant from calling on the guarantees. <o:p></o:p>After
entering appearance, the Appellant filed a Defence and Counterclaim. In the
heading of the Statement of Defence and Counterclaim, the Appellant set out two
titles – the original title of the suit commenced by the Respondent, and the
title of a counterclaim action it commenced with the Appellant as Plaintiff on
one hand, and the Respondent, one Kimathi Dake and the bank as Defendants on
the other hand. The cap</main>