Commercial Law Index

Two parties both claimed ownership to land, both believing they were first to cultivate the land. The court considered an appeal from a judgment that held neither the appellants or respondents were entitled to land in dispute. When the matter was appealed, it was remitted back to the trial court. There was a dispute over the lower court’s decision to remit the case to the trial court to consider the evidence.

The court held that the court has no power to grant a party relief that was not pleaded. However, an appellate court has the inherent power to order a retrial or remittance of a case for whatever purposes, even if this was not pleaded. In this case however, the court held that the previous appellate court was wrong to remit the case back because the trial court had already evaluated the evidence.

The court emphasised that the court must not absolve itself of its duty to carefully evaluate evidence and determine a matter on its merits. The burden of proof lies on the person who alleges, and he must lead credible and cogent evidence to support his claim.

The court held that the applicant had not proven their claim to the land and the respondent, who led credible and cogent evidence about the ownership of the land, was entitled to the property in question.

Appeal against the judgment in favour of the respondent for arrear rent with costs. The appeal was brought on two grounds: the lower court erred by ordering the rent payable in British Pounds (GBP); and the trial court erred in holding that the burden of proving non-payment of the rent in GBP rested on the appellant.

The first issue concerned the interpretation and applicability of the Decimal Currency Act (the act) on the mode of payment of the rent, which was fixed by the Deed of lease. Applying literal interpretation, the court concluded that section 1(2) of the Act related only to contracts entered into in Nigerian Pounds. It was not the legislature’s intention to constrict contractors from deciding the terms and manner of payment. Parties to a contract are bound by its terms and conditions, and a court will respect the contract.

Issue two as to who bore the onus of proving the currency of payment post-Decimal Currency Act, was decided in favour of the respondent. The burden of proof generally lies with the plaintiff to establish their case, however this burden is not static. The respondent adduced evidence of non-payment of rent, the burden shifted to the appellant to adduce evidence rebutting this, and in proof of the assertion that regular payments of rent were made. The appellant failed to produce evidence that payment was made, and that it was done in Naira and not GBP.

The appeal was dismissed.

Litigation was commenced to recover a debt from a company incorporated in Australia that was wholly owned by a Ghanaian company. The High Court granted judgment in favour of the appellant for the amount due. The judgment was appealed because the respondent proposed a scheme of arrangement to reorganise their debts with their creditors. but the appellant subsequently the appellant filed a petition to liquidate the company as it was unable to pay off its debts. The court granted to wind up the company. However, the Court of Appeal granted a stay of execution of the winding-up before the respondent appealed the original decision of the High court to pay the amount due.

The appellant did not succeed with the appeal because they did not prove that the Court of Appeal failed to take relevant matters into consideration, considered irrelevant matters of misapplied the law.

In 1998 the appellant filed a suit against the respondent, to which the responded reacted with a counter-claim. The appellant’s claim was withdrawn in 2006 but the respondent’s counter-claim was not. The trial judge ruled in favour of the respondent. The appellants were dissatisfied with the decision and filed an appeal.

The Court of Appeal considered whether the burden of proof of fraud alleged in the counter-suit rested on the appellants. The court held that the burden of proof rests on the party who alleges that fraud was committed. In this case, the appellants had withdrawn their case against the respondent and only the respondent’s counter-claim remained. Consequently, the court upheld the appellant’s complaint and placed the burden to prove that fraud was committed on the respondent.

The court then considered whether the lease of the suit property to the first appellant was fraudulent and reviewed the lower court’s order in cancellation. The court held that fraud must be specifically pleaded and strictly proved and cannot be left to be inferred from the facts. Neither party attempted to prove fraud against the other. Therefore, the courts held that the lease of the suit property to the first appellant was not fraudulent and that the trial judge should not have cancelled the first appellant’s certificate of title.

The court also considered whether the respondent’s lease agreement was breached because the first appellant denied the respondent possession of the suit land and reviewed the lower court’s order to extend the respondents lease. The court found that the respondent was in breach of contract and, therefore, had no right of possession and overturned the trial judge’s order to extend the respondent’s lease because the respondent had failed to request it in due course.

All grounds of the appeal succeeded.

The court concerned whether the goods seized by the defendants were all released pursuant to a consent to judgment being signed, and payment being fulfilled. 

The plaintiff instituted action against the defendants for a declaration that they had breach a consent order. The defendants, without the plaintiff being present, entered a warehouse and seized a substantial number of goods. 

A consent to judgment was entered into, wherein it was alleged that the defendant had breached the consent by not releasing all the goods. The plaintiff sought recovery of the goods and said that the seizure was unlawful. 

The court found that the test to be applied is as follows: 1) whether all goods were released? 2) If not, what is the value of the goods not released and the potential remedies available? 

The court found that the burden of proof lies on the party who asserts that the truth of the issue is in dispute. When that party adduces evidence, which is sufficient to raise a presumption that what he alleges is true, the burden of proof shifts to the other party to counter allege and produce evidence to rebut the presumption. 

The court found that a substantial portion of the goods were not released as a result of the defendant being overburdened in their workforce, which deprived the plaintiff from use of the proceeds of the goods. Therefore, the plaintiff should be compensated for the economic inconvenience and awarded general damages. 

The plaintiff tried to claim exemplary damages for breach of consent to judgment, however this was denied as it was not proven that the conduct of the defendants amounted to oppressive, arbitrary or unconstitutional behaviour. 

Application upheld.