[2016]DLHC7231 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-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif";color:#00B0F0">ANTONIO OLIMPIO SANTOS FELIX</span></b><i><span style="font-size: 12.0pt;line-height:115%;font-family:"Book Antiqua","serif""><o:p></o:p></span></i></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"">(PLAINTIFF)<o:p></o:p></span></i></p><p class="MsoNormal" align="center" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center"><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="MsoNoSpacing" 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:#00B0F0">GIOVANI ANTONELLI & ANOR</span></b><i><span style="font-size: 12.0pt;line-height:115%;font-family:"Book Antiqua","serif""><o:p></o:p></span></i></p><p class="MsoNoSpacing" 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"">(DEFENDANT)<o:p></o:p></span></i></p><p class="MsoNormal" align="center" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center"><span style="font-size:10.0pt;line-height:115%;font-family: "Book Antiqua","serif"">[HIGH COURT (COMMERCIAL DIVISION), ACCRA]<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="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-size:10.0pt;line-height:115%;font-family:"Book Antiqua","serif"">CM/0143/16</span></b><span style="font-size:10.0pt;line-height:115%;font-family:"Book Antiqua","serif""> DATE: 26<sup>TH</sup> APRIL, 2016<b><o:p></o:p></b></span></p> </div><p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">COUNSEL: <o:p></o:p></span></b></p><p class="MsoNoSpacing" style="line-height:115%"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif"">YONNI KULENDI FOR PLAINTIFF/RESPONDENT<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="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-size:12.0pt;line-height:115%;font-family:"Book Antiqua","serif"">ATTA AKYEA SAMUEL FOR DEFENDANTS/APPLICANTS<o:p></o:p></span></p> </div><p class="MsoNormal" style="margin-bottom:0in;margin-bottom:.0001pt"><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="MsoNoSpacing" style="line-height:115%"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif"">HIS LORDSHIP GEORGE K. KOOMSON (J).<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 0in 1.0pt 0in"> <p class="MsoNormal" align="center" style="margin-bottom:0in;margin-bottom:.0001pt; text-align:center;border:none;mso-border-top-alt:solid windowtext 1.5pt; mso-border-bottom-alt:solid windowtext 1.5pt;padding:0in;mso-padding-alt:1.0pt 0in 1.0pt 0in"><b><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif"">RULING<o:p></o:p></span></b></p> </div><p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Arial">The main issue requiring my adjudication in this application is as to whether or not the court should exercise its judicial discretion to preserve the equipment, machines, vehicles, etc, until the final determination of the substantive suit.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Arial">A summary of the material facts giving rise to the present application is that on the 27<sup>th</sup> February, 2015, the parties entered into a memorandum of understanding whereby the plaintiff agreed to purchase from the 1<sup>st</sup> defendant shares in 2<sup>nd</sup> defendant company.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Arial">The parties agreed further in the said MOU that payment for the shares was to be 50% in cash and the remaining 50% to be paid for in kind (in the nature of equipment, machines, vehicles and spare parts).<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Arial">The plaintiff subsequently shipped equipment, machines, vehicles and spare parts to Ghana, with the 2<sup>nd</sup> defendant as the consignee. The shipment was done in the name of Moldaterres-Terraplangens e Escavacoes. The relationship between the parties became sour and the plaintiff issued a writ of summons claiming, inter alia, a declaration that he is the lawful owner of the equipment, machines and vehicles, the subject-matter of the present application and an order directed at the defendants to deliver the said equipment, machines and vehicles to the plaintiff. The defendants have also counterclaimed for certain reliefs, one of which is for a declaration that the equipment, machines, vehicles and spare parts shipped to the 2<sup>nd</sup> defendant by Moldaterres –Terraplenagens e Escavacoes Lda, are valued in the sum of USD700,690.00 and an order directed at the plaintiff to surrender to the 1<sup>st</sup> defendant the 3 vehicles, the property of the 1<sup>st</sup> defendant, loaned to the 2<sup>nd</sup> defendant as capital, has been illegally seized by the plaintiff.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Arial">I have read the application and the affidavits and annexures filed in support and in opposition. I have given regard to the oral submissions made by both counsel, in support and in opposition to the application. Thoughtful consideration has been given to order 25 rule 2(1) of the High Court (Civil Procedure) Rules, 2004 (CI.47) and the principles governing applications of this nature.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Arial">In considering whether to grant or refuse an application for an order for preservation, the court must first consider whether the property is the subject-matter of the suit.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Arial">In Scott v .Mercantile Accident Insurance Co. (1892) 8 T.L.R. 320, the lower court, made an order that certain jewellery should remain in the custody of the police. An appeal against this order was allowed because it was admitted on the evidence that the property was not the subject matter of the action, but that only a question might arise about it in the cause or matter.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Arial">The court must also consider that the party against whom the order is being sought is the person in possession or custody of the property in dispute:<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify"><b><i><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Arial">See the case of Garrard v. Edge & Sons (1889) 58 L.J. CH. 397: 37 W.R. 50I. C.A. See also Wilder v. Wilder (1912) 56 SJ 571.<o:p></o:p></span></i></b></p><p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Arial">In the case of LENEY & SONS LTD v. CALLINGHAM & THOMPSON (1908) 1 K.B. 79 at 84, Farwell, LJ stated another consideration a court should have as follows:<o:p></o:p></span></p><p class="MsoNormal" style="margin-left:.5in;text-align:justify"><i><span style="font-size:12.0pt;line-height: 115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Arial">“The question of the exercise of the judicial discretion was always based, and is still based, upon this, that there is property in dispute to some interest in which the plaintiff shows a prima facie title; and preservation is ensured until the rights of the parties can be finally determined.”<o:p></o:p></span></i></p><p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Arial">In other words, the plaintiff must establish a prima facie title to the property in dispute before a court may decide to grant an application for the preservation of the properties in dispute.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Arial">Furthermore, the court should consider whether there is something which ought to be done to ensure the security of the property. Thus in Chaplin v. Barnett (1912) 28 T.L.R. 256 it was decided that the rule extends to every case where the court sees that as between the plaintiff and defendant there is something which ought to be done for the security of the property.<o:p></o:p></span></p><p class="MsoNormal" style="text-align:justify"><span style="font-size:12.0pt; line-height:115%;font-family:"Book Antiqua","serif";mso-bidi-font-family:Arial">The court will a