Eastern Alloys Company Ltd Vrs Chirano Gold Mines [2017] GHASC 5 (26 January 2017)

Eastern Alloys Company Ltd Vrs Chirano Gold Mines [2017] GHASC 5 (26 January 2017)

The Supreme Court found that the termination of the contract by the defendant was wrongful, entitling the plaintiff to damages. However, the plaintiff failed to strictly prove special damages for loss on equipment, unrefunded deposits, and administrative expenses. Only general damages for severance of labour were awarded, as some loss could be presumed from the wrongful termination.

Citation
[2017] GHASC 5
Parties
Plaintiff/respondent: Eastern Alloys Company Ltd; Defendant/appellant: Chirano Gold Mines
Court
Supreme Court
Jurisdiction
Ghana
Judgment Date
26 January 2017
Procedural Posture
Civil Appeal / Supreme Court Judgment
Outcome
Appeal succeeds in part; damages reduced
Legal Topics
Breach of Contract, Damages, Special Damages, General Damages, Termination of Contract, Evidence
Source Language
English
Contract Law Breach of Contract Damages Special Damages General Damages Termination of Contract Evidence

Case Brief

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Parties

Eastern Alloys Company Ltd

Plaintiff/respondent

Chirano Gold Mines

Defendant/appellant

Procedural Posture

Civil Appeal / Supreme Court Judgment

Legal Issues

  1. 1 Whether the termination of the haulage contract by the defendant was wrongful
  2. 2 Whether the plaintiff is entitled to damages or compensation for breach of contract
  3. 3 Whether the plaintiff proved special damages as claimed

Ratio Decidendi

The Supreme Court found that the termination of the contract by the defendant was wrongful, entitling the plaintiff to damages. However, the plaintiff failed to strictly prove special damages for loss on equipment, unrefunded deposits, and administrative expenses. Only general damages for severance of labour were awarded, as some loss could be presumed from the wrongful termination.

Court Disposition

Appeal succeeds in part; damages reduced

Orders

  • Award of $1,350,000.00 set aside and substituted with $50,000.00 general damages for severance of labour
  • Claims for loss on equipment, unrefunded deposit on equipment hire, and administrative expenses dismissed