EXPOM GHANA LIMITED vs. VANGUARD ASSURANCE COMPANY LTD. AND TM-STAR INSURANCE SERVICES LTD. [2022]DLSC11718

EXPOM GHANA LIMITED vs. VANGUARD ASSURANCE COMPANY LTD. AND TM-STAR INSURANCE S... [2022]DLSC11718

Date	2022-05-25
Suit No.	CIVIL APPEAL NO. J4/50/2021
Citation No.	[2022]DLSC11718

YEBOAH CJ (PRESIDING)

PWAMANG JSC

OWUSU (MS.) JSC

AMADU JSC

PROF. MENSA-BONSU (MRS.) JSC

FRANK BOAKYE AGYIN ESQ. WITH HIM GEORGE ANKOMA MENSAH ESQ. FOR THE PLAINTIFF/RESPONDENT/APPELLANT.

BENJAMIN KPAKPO SACKAR ESQ. WITH HIM ANNA FORDJOUR ESQ. FOR THE DEFENDANT/APPELLANT/RSPONDENT.

[2022]DLSC11718
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													<main id="main" class="content" style="min-height: 60rem" >EXPOM GHANA LIMITED<o:p></o:p>(PLAINTIFF/RESPONDENT/APPELLANT)<o:p></o:p>vs.<o:p></o:p>VANGUARD ASSURANCE COMPANY LTD. AND
TM-STAR INSURANCE SERVICES LTD. &nbsp;&nbsp;&nbsp;&nbsp;<o:p></o:p>(DEFENDANT/APPELLANT)<o:p></o:p>[SUPREME COURT, ACCRA]<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: 0cm 0cm 1pt;">

<p class="MsoNormalCxSpMiddle" align="center" style="margin-bottom:0cm;margin-bottom:
.0001pt;mso-add-space:auto;text-align:center;line-height:115%;border:none;
mso-border-bottom-alt:solid windowtext 1.5pt;padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm">CIVIL APPEAL NO. J4/50/2021&nbsp; &nbsp; &nbsp; &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:
25TH MAY, 2022<o:p></o:p>

</div>COUNSEL<o:p></o:p>FRANK BOAKYE
AGYIN ESQ. WITH HIM GEORGE ANKOMA MENSAH ESQ. FOR THE
PLAINTIFF/RESPONDENT/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: 0cm 0cm 1pt;">

<p class="MsoNormal" style="margin-bottom:0cm;margin-bottom:.0001pt;text-align:
justify;line-height:115%;border:none;mso-border-bottom-alt:solid windowtext 1.5pt;
padding:0cm;mso-padding-alt:0cm 0cm 1.0pt 0cm">BENJAMIN
KPAKPO SACKAR ESQ. WITH HIM ANNA FORDJOUR ESQ. FOR THE
DEFENDANT/APPELLANT/RSPONDENT.<o:p></o:p>

<p class="MsoNormal" align="center" style="margin-bottom:0cm;margin-bottom:.0001pt;
text-align:center;line-height:115%;border:none;mso-border-top-alt:solid windowtext 1.5pt;
mso-border-bottom-alt:solid windowtext 1.5pt;padding:0cm;mso-padding-alt:1.0pt 0cm 1.0pt 0cm">JUDGMENT<o:p></o:p>

</div>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <o:p></o:p>MAJORITY OPINION<o:p></o:p>&nbsp;PROF MENSA-BONSU (MRS.) (JSC):-<o:p></o:p>This is a case that arose over an insurance claim
that was repudiated by the insurer on grounds of crime and fraud, and the
trajectory that it subsequently travelled to reach the Supreme Court for
determination.<o:p></o:p>Background<o:p></o:p>The plaintiff, Expom Ghana Limited, (now the
appellant herein, but who shall be referred to as the plaintiff to avoid
confusion with the appellant in the Court of Appeal)was a manufacturer of
tomato paste. It had come into this line of business after taking over the business,
assets and liabilities of another company owned by the same shareholders, by
name, ‘Trusty Foods Ltd. The respondent herein, Vanguard Assurance (also
referred to as1stdefendant, to avoid confusion with the respondent
in the Court of Appeal), and the 2nddefendant, TM-Star Insurance
Services, were an Insurance Company and an Insurance Broker respectively. Sometime
in 2008, Expom Ltd took over Trusty Foods Ltd., together with all its assets
and liabilities. These included an ‘All Risks Insurance Policy’ with the 1st
defendant. The ‘All Risks Insurance Policy’ entered into by Trusty Foods policy
was for the following: -<o:p></o:p>“All real and personal property of every kind and description of Trusty
Foods Limited’s own or for which they may be held responsible including but not
limited to Buildings, Plant, Machinery, Stocks, Inventory and Equipment as
detailed (in the contract) as well as Public and Product liability”.<o:p></o:p>The policy, which had a validity of one year, from
20th November, 2006, to 20th November, 2007, was for a maximum value of five
million Euros (E5,000,000). This was subsequently renewed for the years
2007-2008 and 2008-2009.<o:p></o:p>The whole contract had been arranged by the 2nd
defendant, who allegedly, made representations to the plaintiff that the 1stdefendant
was a credible insurance institution that paid claims on time.<o:p></o:p>The takeover of Trusty Foods Ltd by Expom Ltd was
brought to the attention of the Insurers, who did not object. When the
subsisting Insurance was due to expire in 2009, the 1st defendant
prompted plaintiff to renew and this was duly done. It was therefore renewed for
the period 20thNovember, 2009 - 20th November, 2010 i.e a
period of twelve months; and in the name of the new company, Expom Ltd. The sum
assured was fifteen million Euros (E15,000,000), and the premium was quoted as fifty
thousand Euros (E50,000)This means that to the knowledge of the 1stdefendant,
the contract was now held by the new company, Expom Ltd., and they dealt with
the new company accordingly.<o:p></o:p>On 10th May, 2010, a fire occurred on
the plaintiff’s premises which destroyed the plaintiff’s raw materials and
goods. The Ghana Fire Service and Ghana Police Service were called in and they both
attended and helped to put out the fire. After the Fire Service and Ghana
Police had investigated the cause of the fire, they issued a report attributing
the cause of the fire to an electrical fault.<o:p></o:p>The plaintiff submitted a claim with all the
requisite docum</main>