Dalex Finance and Leasing Company Ltd Vrs Amanor and Others [2021] GHASC 16 (14 April 2021)

Dalex Finance and Leasing Company Ltd Vrs Amanor and Others [2021] GHASC 16 (14 April 2021)

The 3rd defendant is not vicariously liable for the fraudulent acts of its finance manager because those acts were committed outside the scope of his employment and in pursuit of personal or third-party interests, not the business of the company. The plaintiff's cause of action against the 3rd defendant lies in tort for deceit, not in contract or under the Borrowers and Lenders Act, but vicarious liability does not arise on the facts.

Citation
[2021] GHASC 16
Parties
Plaintiff/appellant/appellant: Dalex Finance and Leasing Company Ltd.; 1st Defendant: Ebenezer Denzel Amanor; 2nd Defendant: L.G.G Company Limited; 3rd Defendant/respondent/respondent: Huawei Technologies (GH) SA Limited
Court
Supreme Court
Jurisdiction
Ghana
Judgment Date
14 April 2021
Procedural Posture
Civil Appeal / Final Appeal Judgment (supreme Court)
Outcome
appeal dismissed
Legal Topics
Vicarious Liability, Fraudulent Misrepresentation, Scope of Employment, Indoor Management Rule, Credit Agreements, Deceit, Corporate Liability
Source Language
English
Company Law Tort Law Banking and Finance Vicarious Liability Fraudulent Misrepresentation Scope of Employment Indoor Management Rule Credit Agreements +2 more

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Parties

Dalex Finance and Leasing Company Ltd.

Plaintiff/appellant/appellant

Ebenezer Denzel Amanor

1st Defendant

L.G.G Company Limited

2nd Defendant

Huawei Technologies (GH) SA Limited

3rd Defendant/respondent/respondent

Procedural Posture

Civil Appeal / Final Appeal Judgment (supreme Court)

Legal Issues

  1. 1 Whether a limited liability company is liable for the fraudulent acts of its finance manager in dealings with a third party.
  2. 2 Whether the Borrowers and Lenders Act, 2008 (Act 773) applies to the plaintiff's claim against the 3rd defendant.
  3. 3 Whether the 3rd defendant is vicariously liable in tort for deceit committed by its finance manager.

Ratio Decidendi

The 3rd defendant is not vicariously liable for the fraudulent acts of its finance manager because those acts were committed outside the scope of his employment and in pursuit of personal or third-party interests, not the business of the company. The plaintiff's cause of action against the 3rd defendant lies in tort for deceit, not in contract or under the Borrowers and Lenders Act, but vicarious liability does not arise on the facts.

Court Disposition

appeal dismissed