FORDFLORA CO. LTD vs. JOSPONG GROUP OF COMPANIES, THE CHIEF EXECUTIVE OFFICER [JOSPONG GROUP] AND BETTER GHANA MANAGEMENT SERVICES LTD [2019]DLHC7542

FORDFLORA CO. LTD vs. JOSPONG GROUP OF COMPANIES, THE CHIEF EXECUTIVE OFFICER [J... [2019]DLHC7542

Date	2019-05-31
Suit No.	SUIT NO. TRPC/1/2015
Citation No.	[2019]DLHC7542

JEROME NOBLE-NKRUMAH JUSTICE OF THE HIGH COURT

VICTOR AZAMETI FOR THE PLAINTIFF

RICHARD BOBBISON JNR WITH FELIX WORNAMEH FOR THE DEFENDANTS

[2019]DLHC7542
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													<main id="main" class="content" style="min-height: 60rem" >FORDFLORA CO.
LTD<o:p></o:p>vs.<o:p></o:p>JOSPONG GROUP OF COMPANIES, THE CHIEF EXECUTIVE OFFICER [JOSPONG
GROUP] AND BETTER GHANA MANAGEMENT SERVICES LTD<o:p></o:p>[HIGH COURT (COMMERRCIAL DIVISION), ACCRA]<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. TRPC/1/2015&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; &nbsp;DATE: 31ST MAY, 2019<o:p></o:p>

</div>COUNSEL:
<o:p></o:p>VICTOR
AZAMETI FOR THE PLAINTIFF <o:p></o:p><div style="mso-element:para-border-div;border:none;border-bottom:solid windowtext 1.5pt;
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RICHARD
BOBBISON JNR WITH FELIX WORNAMEH FOR THE DEFENDANTS <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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JEROME
NOBLE-NKRUMAH JUSTICE OF THE HIGH COURT<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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</div>Contract-Variation-Duress-Performance<o:p></o:p>The plaintiff is a business entity
registered under the Laws of Ghana while the 1st defendant made up
of a group of companies is also registered under the laws of Ghana. 2nd
defendant is Chief Executive officer of the 1st defendant. The 3rd
defendant a subsidiary of the 1st defendant.<o:p></o:p>The plaintiff’s case is that on or
about the 29th of January 2012 the General Manager of the 3rd
defendant sought and had the 2nd defendant’s approval to provide
uniforms for Health Extension Workers [HEW] as well as Health Promotion
officers and Assistants [HPOA]. Consequent upon the approval of the 2nd
defendant, 1st defendant issued a local purchase order [LPO] [exhibit
2] to the plaintiff for the supply of 13,000 sets of uniforms for the HPOA at
total cost of GHC364, 000.00 and an additional 25,000 sets of uniforms for the
HEW at a cost of GHC600, 000.00 bringing the total sets of uniforms to 38,000
and a grand total cost of GHC964, 000.00. According to the plaintiff it was
agreed that 40% of the total cost being GHC385, 600.00 was to be paid upon
delivery of the uniforms and thereafter 10% of the balance of GHC578, 400.00
being GHC96, 400.00 was to be paid in each subsequent month in installments for
a period of 6 months.<o:p></o:p>It is the plaintiff’s case that since
the defendants failed to provide mobilization funds and due to the urgency the
defendants placed on the order, it was compelled to contract a business loan of
GH550, 000.00 from IFS International Services Ltd [IFS]. According to the plaintiff,
IFS agreed to grant it the facility based on the total contract it had been
given by the defendants, including defendant’s irrevocable undertaking [exhibit
4] to make all payments on the contract in the joint names of the plaintiff and
IFS. It is the plaintiff’s case that this undertaking was a guarantee to facilitate
quick and timely repayment of facility granted the plaintiff within the
stipulated time. However according to the plaintiff the defendants breached the
agreed payment schedule.<o:p></o:p>The plaintiff again says the Chief
Financial Officer [CFO] unilaterally reduced the total contract sum by GHC38,
000.00 to GHC926, 000.00 causing him to agree to this new figure under duress.
That this unilateral reduction and other breaches by the defendants occasioned
the plaintiffs inability to meet its timely obligation to IFS, culminating in
an outstanding amount of GHC 404,691.96 made up of accrued interest of GHC
403,741.69 and penal charges of GHC950.00 as at 5th June 2014 affected
the expected payments to IFS. <o:p></o:p>&nbsp;&nbsp;Consequently the plaintiff has sued the
defendants as follows:<o:p></o:p>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
An
order directed at the defendants jointly and severally to pay GHC404,691.96 to
IFS Financial Services Ltd. on behalf of the plaintiff, being the outstanding
accrued interest payments on GHC550,000.00 loan facility and penal charges
emanating from the defendants breaches of the original terms between the
parties for the supply of 38,000 pieces of uniforms<o:p></o:p>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Additional
order directed at the defendants to settle any other related indebtedness to
the IFS Financial Services Ltd on behalf of the plaintiff emanating from their
breaches of terms of payment from June 2014 up to and inclusive of the date of
final payment<o:p></o:p>