FRIGO LIMITED vs. INFITCO COMPANY LTD [2017]DLCA4754

Date	2017-11-09
Suit No.	CIVIL APPEAL NO: H1/157/2017
Citation No.	[2017]DLCA4754

K. A. ACQUAYE J.A. (PRESIDING)

A. M. A. DORDZIE (MRS) J.A

S. DZAMEFE JA

AMARTEI AMARTEIFIO WITH M. K. YEBOAH FOR DEFENDANT/APPELLANT

MS. EFFIBA AMIHERE WITH DZIFA DADZO FOR PLAINTIFF/RESPONDENT.

[2017]DLCA4754
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													<main id="main" class="content" style="min-height: 60rem" >FRIGO LIMITED&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <o:p></o:p>(DEFENDANT/
APPELLANT)<o:p></o:p>vs.<o:p></o:p>INFITCO COMPANY LTD<o:p></o:p>(PLAINTIFF/RESPONDENT)<o:p></o:p>[COURT OF APPEAL (CIVIL APPEAL), 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: H1/157/2017&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: 9TH NOVEMBER, 2017<o:p></o:p>

</div>COUNSEL:<o:p></o:p>AMARTEI AMARTEIFIO WITH M.
K. YEBOAH FOR DEFENDANT/APPELLANT<o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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MS.
EFFIBA AMIHERE WITH DZIFA DADZO FOR PLAINTIFF/RESPONDENT.<o:p></o:p>

K.
A. ACQUAYE J.A. (PRESIDING), A. M. A. DORDZIE (MRS) J.A, S. DZAMEFE JA<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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<p class="MsoNormal" align="center" style="margin-bottom:0in;margin-bottom:.0001pt;
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padding:0in;mso-padding-alt:0in 0in 1.0pt 0in">JUDGMENT<o:p></o:p>

</div>A.M. DORDZIE
J. A:<o:p></o:p>This action arose out of breach of a construction
contract the parties entered into in March 2001. By the terms of the said
contract the plaintiff, a company that operates cold stores engaged the
defendant to construct a cold store facility for it at Tema at a cost of USD392,
000 excluding VAT. In February 2007 the contract terms were renewed to include
insulation using polyurethane spray system, installation of cooling units and
other works such as electrical, doors and cable fixing. The plaintiff paid a
total of USD 400,000 out of the contract sum and had USD150, 000 as an
outstanding balance to be paid by instalment per terms agreed to in the
contract.<o:p></o:p>The defendant breached the terms of the contract
and failed to complete the works as agreed. The plaintiff on the 22nd
of December 2014 instituted an action in the High Court, Tema seeking the
following reliefs:<o:p></o:p>a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
“The payment of
USD 250, 000 which is the outstanding balance out of the sum of USD 400, 000
paid to the defendant for the construction of cold storage facility at Tema.<o:p></o:p>b)&nbsp;&nbsp;&nbsp;&nbsp;
Interest on the
said amount from the date it became due till date of final payment.<o:p></o:p>It is part of the terms agreed to in the contract
that disputes arising out of the contract would be referred to the Commercial
Court of Ghana. In protest to the commencement of the suit in the Tema High
Court, which has general jurisdiction, the defendant, on the 22nd of
January 2015 entered a conditional appearance and subsequently filed a motion praying
that the writ be set aside on the ground that the High Court Tema was the wrong
forum to institute the action. This prayer was granted and the suit was
transferred to the Commercial Division of the High Court Accra.<o:p></o:p>