A.J. Fanj Constructions and Another Vrs Ghaccem Ltd [2022] GHASC 7 (2 March 2022)

A.J. Fanj Constructions and Another Vrs Ghaccem Ltd [2022] GHASC 7 (2 March 2022)

The Supreme Court held that the prior arbitral and Supreme Court proceedings only determined whether a non-signatory (GHACEM) could be joined to arbitration, not the substantive issue of whether GHACEM was the real contracting party. Therefore, res judicata does not apply, and the appellant's suit is not an abuse of process. The Court of Appeal erred in striking out the suit, and the High Court's ruling is restored.

Citation
[2022] GHASC 7
Parties
Plaintiff/respondent/appellant: A. J. FANJ Construction and Industrial Engineering Ltd.; Defendant/appellant/respondent: GHACEM Limited
Court
Supreme Court
Jurisdiction
Ghana
Judgment Date
2 March 2022
Procedural Posture
Civil Appeal / Supreme Court Judgment on Appeal From Court of Appeal
Outcome
appeal allowed
Legal Topics
Res Judicata, Abuse of Process, Joinder of Parties, Arbitration Agreement, Lifting Corporate Veil
Source Language
English
Civil Procedure Arbitration Contract Law Res Judicata Abuse of Process Joinder of Parties Arbitration Agreement Lifting Corporate Veil

Case Brief

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Parties

A. J. FANJ Construction and Industrial Engineering Ltd.

Plaintiff/respondent/appellant

GHACEM Limited

Defendant/appellant/respondent

Procedural Posture

Civil Appeal / Supreme Court Judgment on Appeal From Court of Appeal

Legal Issues

  1. 1 Whether the appellant's suit is barred by res judicata due to prior arbitral and Supreme Court proceedings
  2. 2 Whether the appellant's suit constitutes an abuse of court process

Ratio Decidendi

The Supreme Court held that the prior arbitral and Supreme Court proceedings only determined whether a non-signatory (GHACEM) could be joined to arbitration, not the substantive issue of whether GHACEM was the real contracting party. Therefore, res judicata does not apply, and the appellant's suit is not an abuse of process. The Court of Appeal erred in striking out the suit, and the High Court's ruling is restored.

Court Disposition

appeal allowed

Orders

  • Court of Appeal decision reversed
  • High Court ruling restored