African Automobile Ltd Vrs Tema Oil Refinery [2011] GHASC 45 (29 June 2011)

African Automobile Ltd Vrs Tema Oil Refinery [2011] GHASC 45 (29 June 2011)

The Supreme Court held that the original contract (exhibits A and D) was never validly varied or settled by exhibit 3, and the plaintiffs were entitled to damages for breach of contract as the defendants' conduct caused foreseeable losses. The award of substantial general damages was justified given the egregious conduct of the defendants, and the value of the drums was proven by unchallenged evidence. The calculation of outstanding deliveries was corrected to 146,000 litres. The award of costs was not excessive given the overall dismissal of the appeal.

Citation
[2011] GHASC 45
Parties
Plaintiff/respondent/respondent: African Automobile Limited; Defendant/appellant/appellant: Tema Oil Refinery
Court
Supreme Court
Jurisdiction
Ghana
Judgment Date
29 June 2011
Procedural Posture
Civil Appeal / Supreme Court Final Appellate Judgment
Outcome
Appeal dismissed with variation
Legal Topics
Breach of Contract, Damages, Assessment of Damages, Contractual Interpretation, Costs
Source Language
English
Contract Law Commercial Law Breach of Contract Damages Assessment of Damages Contractual Interpretation Costs

Case Brief

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Parties

African Automobile Limited

Plaintiff/respondent/respondent

Tema Oil Refinery

Defendant/appellant/appellant

Procedural Posture

Civil Appeal / Supreme Court Final Appellate Judgment

Legal Issues

  1. 1 Whether the contract between the parties was varied or settled by a subsequent agreement (exhibit 3)
  2. 2 Whether the award of substantial general damages was justified
  3. 3 Whether the calculation of outstanding deliveries and interest was correct

Ratio Decidendi

The Supreme Court held that the original contract (exhibits A and D) was never validly varied or settled by exhibit 3, and the plaintiffs were entitled to damages for breach of contract as the defendants' conduct caused foreseeable losses. The award of substantial general damages was justified given the egregious conduct of the defendants, and the value of the drums was proven by unchallenged evidence. The calculation of outstanding deliveries was corrected to 146,000 litres. The award of costs was not excessive given the overall dismissal of the appeal.

Court Disposition

Appeal dismissed with variation

Orders

  • Court of Appeal judgment of 11th March 2010 affirmed except for the correction that only 146,000 litres of marine mix remain to be delivered by the plaintiffs to the defendants; the order regarding 108,000 litres is set aside.
  • Defendants to pay damages as awarded by the Court of Appeal, including €350,000 general damages, outstanding payments for supplied marine mix and drums, and interest as specified.