MERCHANT BANK LIMITED vs. FRANSTEL LIMITED [2020]DLCA9856

Date	2020-10-29
Suit No.
Citation No.	[2020]DLCA9856

A. M. DOMAKYAAREH (MRS) J. A. PRESIDING

B. POKU-ACHEAMPONG J. A.

S. K. A. ASIEDU J. A.

KOFI HAYFORD FOR DEFENDANT/APPELLANT

OWUSU GYAN FOR PLAINTIFF/RESPONDENT

[2020]DLCA9856
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													<main id="main" class="content" style="min-height: 60rem" ><a name="_Hlk35510717">MERCHANT BANK LIMITED<o:p></o:p></a>&nbsp;(DEFENDANT/APPELLANT)<o:p></o:p>vs.<o:p></o:p>FRANSTEL LIMITED<o:p></o:p>&nbsp;(PLAINTIFF/RESPONDENT)<o:p></o:p>[COURT OF APPEAL, KUMASI]<o:p></o:p><div style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom-width: 1.5pt; border-bottom-color: windowtext; padding: 0in 0in 1pt;">

SUIT NO.: H1/56/2018&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: 29TH OCTOBER, 2020<o:p></o:p>

</div>COUNSEL:<o:p></o:p>KOFI HAYFORD FOR DEFENDANT/APPELLANT.<o:p></o:p><div style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom-width: 1.5pt; border-bottom-color: windowtext; padding: 0in 0in 1pt;">

OWUSU GYAN FOR PLAINTIFF/RESPONDENT.<o:p></o:p>

</div>CORAM:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <o:p></o:p>A. M. DOMAKYAAREH (MRS) J. A. PRESIDING,
B. POKU-ACHEAMPONG, J. A., S. K. A. ASIEDU, J. A. <o:p></o:p><div style="border-top-width: 1.5pt; border-top-color: windowtext; border-left: none; border-bottom-width: 1.5pt; border-bottom-color: windowtext; border-right: none; padding: 1pt 0in;">

<p class="MsoNormalCxSpFirst" align="center" style="text-align:center;line-height:
150%;tab-stops:147.0pt;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">JUDGMENT<o:p></o:p>

</div>POKU-ACHEAMPONG, J.A.:<o:p></o:p>This
appeal emanates from a judgment of the High Court (Commercial Division) Kumasi dated
14th March 2016. <o:p></o:p>The
facts of the case are straightforward. It is a matter of regret that a business
dispute between a company and its bankers, a relationship spanning over a
decade, could not be resolved through the Alternative Dispute Resolution (ADR)
scheme, but had to drag on for almost ten years before judgment at the Trial
High Court and a further four years for the appeal.<o:p></o:p>Whatever
victory that may be won by whichever party would doubtlessly be a pyrrhic
victory.<o:p></o:p>For
the purposes of this judgment the parties shall retain their designation in the
trial court and shall be referred to as Plaintiff and Defendant.<o:p></o:p>FACTS:<o:p></o:p>The Plaintiff
is a Ghanaian company based in Kumasi and an importer of general goods and the Defendant
is a Merchant bank of repute in the country.<o:p></o:p>By
their amended writ of summons filed on 31st October 2013, pursuant
to an order granted by the Court dated 29th October, 2013, the Plaintiff
company claimed from the Defendant Bank the following reliefs:<o:p></o:p>a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
An order for recovery of cash the sum of four
hundred and fifty million cedis (old cedis) (¢450,000,000.00) being monies the Defendant
demanded from the Plaintiff as a deposit for the opening of Letters of Credit
for the Plaintiff for importation of sugar.<o:p></o:p>b)&nbsp;&nbsp;&nbsp;&nbsp;
Interest on all monies payable to the Plaintiff
from 1st December, 2004 to the date of final payment.<o:p></o:p>c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Damages for breach of contract.<o:p></o:p>d)&nbsp;&nbsp;&nbsp;&nbsp;
Cash the sum of ¢916,976.02 being anticipated
profit lost by the Plaintiff as a result of the Defendants breach of contract
to open letters of credit for the Plaintiff.<o:p></o:p>e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Cash the sum of $90,000.00 representing 3% of
the contract sum of $3,000,000.00 the Plaintiff has forfeited to Zar Limited as
a result of the abrogation of that contract which abrogation was occasioned as
a result of the Defendant’s breach of contract to issue Letters of Credit for
the Plaintiff.<o:p></o:p>It
is important to state that the failed business transaction took place in 2005
and 2006 and the first writ of summons which was subsequently amended was
issued in October 2006.<o:p></o:p><o:p>&nbsp;</o:p>