Ofori Vrs Ecobank Ghana Limited & 2 Ors [2020] GHASC 106 (17 June 2020)

Ofori Vrs Ecobank Ghana Limited & 2 Ors [2020] GHASC 106 (17 June 2020)

The court held that the investment contract implied compound interest based on business efficacy and banking custom, and that the statutory rate for post-judgment interest is the 91 days Treasury Bill rate of 13.34% due to ambiguity in the definition of prevailing bank rate.

Citation
[2020] GHASC 106
Parties
Plaintiff/appellant/appellant/respondent: Daniel Ofori; 1st Defendant/respondent/respondent/applicant: Ecobank Ghana Limited; 2nd Defendant: Securities and Exchange Commission; 3rd Defendant: Ghana Stock Exchange
Court
Supreme Court
Jurisdiction
Ghana
Judgment Date
17 June 2020
Procedural Posture
Civil Motion / Post Judgment Application to Determine Mode of Calculating Interest on Judgment Debt
Outcome
application granted in part
Legal Topics
Implied Terms in Contracts, Calculation of Interest, Compound Interest, Statutory Interest Rates
Source Language
English
Contract Law Banking Law Implied Terms in Contracts Calculation of Interest Compound Interest Statutory Interest Rates

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Parties

Daniel Ofori

Plaintiff/appellant/appellant/respondent

Ecobank Ghana Limited

1st Defendant/respondent/respondent/applicant

Securities and Exchange Commission

2nd Defendant

Ghana Stock Exchange

3rd Defendant

Procedural Posture

Civil Motion / Post Judgment Application to Determine Mode of Calculating Interest on Judgment Debt

Legal Issues

  1. 1 Whether interest on the invested amount should be calculated as compound or simple interest
  2. 2 What statutory rate applies for post-judgment interest

Ratio Decidendi

The court held that the investment contract implied compound interest based on business efficacy and banking custom, and that the statutory rate for post-judgment interest is the 91 days Treasury Bill rate of 13.34% due to ambiguity in the definition of prevailing bank rate.

Court Disposition

application granted in part

Orders

  • Interest on GHS6,162,240.00 to be calculated at 30% compound interest from 2nd June 2008 to 25th July 2018, then at 13.34% simple interest until final payment.
  • Interest on GHS7,600,000.00 to be calculated at 13.34% simple interest from 2nd June 2008 until final payment.