IN THE SUPERIOR COURT OF JUDICATURE, IN THE HIGH COURT
OF JUSTICE (GENERAL JURISDICTION COURT 5) HELD IN ACCRA
ON FRIDAY THE 4TH DAY OF NOVEMBER, 2022 BEFORE HIS
LORDSHIP JUSTICE WILLIAM BOAMPONG, HIGH COURT JUDGE
SUIT NO: GJ/1217/2017
1. EUGENE ASIAMAH BOADI
NO. 1 DECORBUILD
OPPOSITE MELCOM
EAST LEGON, ACCRA
2. MET CAPITAL COMPANY LIMITED PLAINTIFFS
3. ASI-B PENSIONS TRUST LIMITED
4. ASI-B SAVINGS AND LOANS LIMITED
VS
ERNEST OPOKU AGYEMANG RESPONDENT
NO. 3 & 5, CSIR, OTINSHIE ROAD
EAST LEGON, ACCRA
JUDGMENT
Plaintiffs issued out their Writ of Summons claiming against the Defendant
as follows:-
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a. Special Damages for the sum of One Million, Two Hundred Thousand
Ghana Cedis (GH¢1,200,000.00) for destroyed and missing office
wares.
b. General Damages for the sum of One Million Ghana Cedis
(GH¢1,000,000.00).
c. Cost including legal fees.
The Defendant also counter-claimed against the Plaintiffs as follows:-
a) A declaration that the 1st Plaintiff breached the Tenancy Agreement
executed by the parties on the 29th December, 2015 on the grounds of;
i. Failure to pay rent on due date
ii. Sub-letting the property to 3rd Parties i.e. 2nd, 3rd and 4th Plaintiffs
without the knowledge, consent and authorization of the
Defendant.
iii. Damages for breach of contract.
iv. Order for specific performance of the handwritten agreement
prepared by the 1st Plaintiff and executed by the Parties on 2nd
June, 2017.
v. Cost.
PLAINTIFFS’ CASE:
The 1st Plaintiff filed a Witness Statement on behalf of the Plaintiffs.
In their Witness Statement, the 1st Plaintiff stated that he (1st Plaintiff)
executed a Tenancy Agreement with the Defendant on 29th December 2015.
According to the 1st Plaintiff in the said Tenancy Agreement, he was to take
up for rent three separate storey buildings for the purpose of using same for
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his financial business. The monthly rent was US$4,500.00 for all the three
separate storey building blocks.
The 1st Plaintiff paid the annual rent of Fifty Four Thousand US Dollars
(US$54,000.00) covering 1st January 2016 – 31st December, 2016. This was
renewable for the next 2 years i.e. the year 2017 and 2018.
After the expiration of the year 2016, the 1st Plaintiff opted to pay rent for the
year 2017 per a post-dated cheque, payable on 31st March, 2017 (instead of
the 1st January, 2017). This offer was rejected by the Defendant. The
Defendant therefore served a Notice of Eviction on the 1st Plaintiff on the 17th
March, 2017.
On the 4th day of May 2017, the Defendant entered the premises with thugs
(which he claimed are his workmen) and forcibly evicted the 1st Plaintiff and
other Plaintiffs, throwing out all of Plaintiffs office-wares and belongings
outside the office premises. These office-wares were left at the mercy of the
weather and it rained on them on that fateful day.
According to the 1st Plaintiff, upon these acts of the Defendant, the Plaintiffs
were compelled to move their wares from the Defendant’s premises.
1st Plaintiff states that before Plaintiffs were allowed to collect the remaining
office wares including a B.M.W Vehicle parked on the premises belonging to
a Third Party, the Defendant demanded One Hundred Thousand Ghana
Cedis (GH¢100,000.00) from the Plaintiffs to cater for the cost of renovating
the properties as well as the 3 months’ rent owed. To that effect, the 1st
Plaintiff wrote an undertaking to pay the said sum of One Hundred
Thousand Ghana Cedis (GH¢100,000.00) to the Defendant per Exhibit ‘5’.
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The 1st Plaintiff contends that the unlawful eviction has caused them huge
losses with some of their office wares unseen and stolen.
DEFENDANT’S CASE:
The Defendant do not dispute the Tenancy Agreement he entered into
between himself and the 1st Plaintiff. He does not also dispute the annual
payment of the rent to cover the year 2016.
It is not also disputed that the 1st Plaintiff was not able to pay the rent for the
year 2017 on the due date (i.e. 1st January, 2017) instead the 1st Plaintiff gave
to the Defendant a post-dated cheque payable at 31st March, 2017 as rent.
The Defendant therefore rejected this offer and served the 1st Plaintiff with a
Notice of Eviction of the 17th March 2017.
On the 4th day of May 2017, the Defendant proceeded on the rented premises
with his workmen and evicted the Plaintiffs. The execution of Exhibit ‘5’
regarding the payment of One Hundred Thousand Ghana Cedis
(GH¢100,000.00) by the 1st Plaintiff to the Defendant is not also disputed by
the Parties.
ISSUES:
At the close of the pleadings, the following issues were set down for trial.
1. Whether or not 1st Plaintiff disclosed to the Defendant the nature of the three
(3) businesses he was engaged in, the purpose for which he rented the 3
properties belonging to the Defendant.
2. Whether or not the Defendant sometime in May 2017 unlawfully entered
into the 3 properties in the absence of 1st Plaintiff and ordered thugs whom
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he had brought to the premises to pack out Plaintiffs’ office wares and all of
its belonging (s).
3. Whether or not the Plaintiffs suffered any damage or losses as a result of the
actions of the Defendant (and therefore are entitled to their reliefs.
4. Whether or not Defendant ordered 1st Plaintiff to undertake to pay the sum
of One Hundred Thousand Ghana Cedis (GH¢100,000.00) before he
would be allowed to take out a BMW Vehicle belonging to a client of 2nd
Plaintiff (Siaw Nartey) and which the said vehicle was packed in the premises
of the Defendant.
Additional issues:
1. Whether the 1st Plaintiff breached the terms of the Tenancy Agreement with
Defendant.
2. Whether the 1st Plaintiff issued cheques to the Defendant for payment of rent.
3. Whether the 1st Plaintiff caused extensive damage to the Defendant’s
premises.
4. Whether the 1st Plaintiff owns the Defendant in respect of rent payable.
5. Whether the 1st Plaintiff left behind huge utility bills unpaid.
Determination of Issues:
The issue as why the 1st Plaintiff rented the Defendant’s premises is not far-
fetched.
I refer to clause 1 (J) of the Tenancy Agreement as follows:-
“Tenant agrees to use the set of properties for his financial business and shall
maintain the properties to the high standard as when he took them”.
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The following questions were also put to the Defendant under cross-
examination by Counsel for the Plaintiffs.
“Q. So you knew that the property was being rented for the 1st Plaintiff’s financial
business?
A. Yes.”
Q. At paragraph 23 of your Witness Statement, this is what you said (Counsel
reads) you have told this Court that the 1st Plaintiff needed a place for his
financial business.
A. Yes My Lord”.
Indeed the Defendant himself admits that the 1st Plaintiff rented the property
for his financial business and this is also clearly indicated in the Tenancy
Agreement.
Both parties also agreed on the records that when the rent for the year 2017
was due to be paid on 1st January 2017, the 1st Plaintiff was not able to pay.
The 1st Plaintiff instead issued a cheque for the said payment. The cheque
was a post-dated cheque dated 31st March, 2017. The Defendant however
did not present the said cheque to the Bank to cash same.
To the Defendant, the non-payment of the said rent amounted to default on
the part of the 1st Plaintiff to have paid the rent after 3 months.
Pursuant to the default of the 1st Plaintiff to pay the said rent for the year
2017, the Defendant caused his lawyer to serve the 1st Plaintiff Notice to quit
per Exhibit ‘4’ dated 17th March, 2017. The Defendant was also told by the
Bank that the 1st Plaintiff had even stopped payment of the money upon
presentation of the cheque.
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See Exhibits ‘6’ and ‘6A’ as the Bank advise and Exhibits ‘7’, ‘7A’, ‘7B’ and
‘7C’ as the post-dated cheques.
For the 1st Plaintiff‘s default to pay rent for 3 months, the Defendant in May
2017 entered the premise to eject the 1st Plaintiff and the other Plaintiffs.
According to the Defendant he removed the office furniture and other hard
ware and placed them on the Courtyard, while keeping the electronic
gadgets and other sensitive materials in a locked room.
The version of the 1st Plaintiff is however that the Defendant removed the
Plaintiffs’ office wares and threw same onto the floor of the office premise
per Exhibit ‘M’.
The Plaintiffs also exhibited Exhibit ‘L’ to indicate how the Defendant
removed the main corporate business signage that was mounted in front of
the office premises.
Counsel for the Plaintiffs submits that even if the 1st Plaintiff failed to renew
his annual rent upon the expiration of the 2016 annual rent, then the tenants
(Plaintiffs) would become statutory tenants. He refers to Section 36 of the
Rent Act on the concept of a statutory tenant which is defined to mean “a
tenant who remains in possession of premises after the determination by any
means of his tenancy who cannot by reason of the provision of the Rent Act
be deprived of such possession by his landlord.”
Counsel for Plaintiffs submits that even if the 1st Plaintiff defaulted in the
payment of rent for 3 months, the Defendant cannot rightfully enter the
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premise to eject the Plaintiffs except by an order of a Court of competent
jurisdiction.
It is not doubted on the records that irrespective of the hardships that
occurred to the 1st Plaintiff in his financial business at that given time he
could not pay the rent in 2017 annual year. The rent was to be due for
payment on 1st January 2017 but nothing was paid in the first 3 months in
2017.
Generally due to default to pay rent and per the terms of the Tenancy
Agreement, the 1st Plaintiff could have become a statutory tenant and the
provision for ejecting a statutory tenant could have applied.
However the provision as contained in clause 4 of the Tenancy Agreement
would avail the Defendant in his act of entering the rented property and
ejecting the Plaintiffs.
Clause 4 of the Tenancy Agreement is as follows:-
“4 PROVIDED ALWAYS THAT:
If the rent or any part thereof shall be in arrears for Ninety (90) days after the same
shall have become due whether legally demanded or not if there shall be a breach of
any of the obligations on the part of the tenants the landlord may re-enter the
premises or any part thereof in the name of the whole and immediately thereupon the
tenancy shall absolutely determine without prejudice to any other right and remedies
of the landlord”
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Under cross-examination, the 1st Plaintiff admitted owning rent for the
period of January to April 2017. He also admits that the rent was payable by
31st December 2016.
1st Plaintiff further admits that due demand notice was served on him by the
Defendant’s lawyer per Exhibit ‘4’.
I therefore hold that the Defendant was within his right to enter into the
premises to evict the Plaintiffs for non-payments of rent by virtue of the
provisions in clause 4 of the Tenancy Agreement.
In the Witness Statement of the Plaintiffs, the 1st Plaintiff averred that the
Defendant caused damage to his property when he removed them from the
premises. The Plaintiffs could not however lead evidence on what damage
was caused to the individual items and their cost.
The Plaintiffs just tendered photographs of the items packed into the Court
yard. It can be seen from those photographs tendered by the Plaintiffs that
the items packed into the Court yard are covered with a trampoline while
some of the items are packed in a room.
Defendant’s claim that the items were moved and packed into the Courtyard
and covered by a trampoline while some of the items like electrical gadgets
were parked in a room is well corroborated by the Plaintiffs in their Exhibit
‘9’.
By the strength of cases like:
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1. Manu v Nsiah [2004 – 2005] SCGLR 25
2. Anderson v Tetteh [2013] 59GMJ 62 (C.A)
3. Osei Yaw v Adumfeh (1965) GLR 418 S.C
I am inclined to accept the version of the Defendant that no damage was
caused to the Plaintiff’s property since same is corroborated by the Plaintiff’s
own Exhibit ‘9’.
One other crucial issue to be determine in this suit is:-
Whether the 1st Plaintiff gave an undertaking to the Defendant to pay a sum
of One Hundred Thousand Ghana Cedis (GH¢100,000.00) before he could be
allowed to take out the BMW Vehicle belonging to a client of 2nd Plaintiff
(Mr. Siaw Nartey) packed in Defendant’s premises.
In this regard, the 1st Plaintiff averred in paragraphs 39 and 40 of the
Plaintiff’s Witness Statement as follows:-
“39. The Defendant insisted on payment of 3 months’ rent of Thirteen Thousand,
Five Hundred US Dollars (US$13,500.00) owned him before the taking of
the said BMW belonging to our client. I was forced by the Defendant to make
an undertaking under duress to pay an amount of One Hundred Thousand
Ghana Cedis (GH¢100,000.00) with post-dated cheques supporting it before
the client and owner of the BMW Vehicle could take the vehicle away together
with other belongings of the Plaintiffs.
40. The said amount of One Hundred Thousand Ghana Cedis
(GH¢100,000.00)as per the undertaking was to cater for rent due for 4
months, Eighteen Thousand US Dollars (US$18,000.00) accrued electricity
bill and maintenance cost that the Defendant expected to incur in restoring
the property to its original state”.
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It would be observed that the 1st Plaintiff made this undertaking per Exhibit
‘5’ on the 7th June 2017. This is about a month after the Defendant had re-
entered the rented premises and ejected the Plaintiffs and removed their
items from the premises. There is nothing on the records to show that after
the ejectment of the Plaintiffs, the Plaintiffs made any complaint against the
Defendant.
The 1st Plaintiff also admits that, prior to the said undertaking, he had
already admitted that he was in default of rent. This default payment of rent
by the 1st Plaintiff was even factored into the payment in the said
undertaking. If the 1st Plaintiff claims that the Defendant also owned him for
causing damage to his properties why was same not also factored into the
undertaking in terms of a “set off”.
This undertaking was made in the 1st Plaintiff’s own handwriting and the 1st
Plaintiff duly signed the undertaking. If the 1st Plaintiff thought that the
Defendant was forcing him to make the said undertaking why did he not
take step to institute a writ action against the Defendant as he has done this
time?
Indeed, from all these considerations, I am inclined to believe that the 1 st
Plaintiff wrote Exhibit ‘5’ i.e. the undertaking voluntarily and from his own
will. I see his later defence that he wrote Exhibit ‘5’ (the undertaking) under
duress as only an afterthought. The 1st Plaintiff must live up to his
undertaking. The undertaking is his deed and he must pay the sum
endorsed thereon to the Defendant.
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I will now determine as to whether or not the 1st Plaintiff breached the
Tenancy Agreement.
1. The Tenancy Agreement states clearly that the agreement was
between the Defendant and the 1st Plaintiff in their personal capacities
as Landlord and Tenant respectfully simplicitor yet the 1st Defendant
subletted part or a portion of the premises to the 2nd, 3rd and 4th
Plaintiffs to operate their business.
The introductory part of the Tenancy Agreement read:-
“The TENANCY AGREEMENT is made this 29th Day of December 2015
BETWEEN Mr. Ernest Opoku Agyemang of P.O. Box 8412, Adum-Kumasi,
in the Asante Region of the Republic of Ghana which expression shall where
the context so admits or require includes his executor administrators
successors and assigns) hereinafter called THE LANDLORD of the part
AND Mr. Eugene Asiama-Boadi of P.O. Box AN 100910, Accra North, Accra
which expression shall where context so admits or require include his
personal representatives and assigns (hereinafter called the TENANT”).
Indeed the Tenancy agreement was made between Mr. Ernest Opoku
Agyeman (Defendant) and Eugene Asiama-Boadi (1st Plaintiff) as Landlord
and Tenant without more.
Clause 2(h) of the Tenancy Agreement also reads:
“The tenant shall not assign or sublet or part with possession of the whole or any
part of the premises”
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Despite clause 2(h) of the Tenancy Agreement, the 1st Plaintiff admits that he
subletted part of the premises to the 2nd, 3rd and 4th Plaintiffs.
This act of the 1st Plaintiff by subletting part or portions of the rented
premises to the 2nd, 3rd and 4th Plaintiffs to operate their business is a clear
breach of clause 2(h) of the Tenancy Agreement.
2. The 1st Plaintiff
3. also admitted that he failed to pay the rent due from the period of
January 2017 to April 2017.
See Clause 4 of the Tenancy Agreement
“provided always that:
if the rent or any part thereof shall be in arrears for Ninety 90 days after the
same shall have become due whether legally demanded or not if there shall
be a breach of any of the obligations on the part of the tenant the landlord
may re-enter the premises or part thereof in the name of the whole and
immediately thereupon the tenancy shall absolutely determine without
prejudice to any other rights and remedies to the landlord”
The 1st Plaintiff’s own admission that he defaulted in payment of rent from
January 2017 – April 2017 was in total breach of clause 4 of the Tenancy
Agreement.
Now, having established that fact that the Defendant did not cause any
damage or destroy any office wares and belongings of the 1st Plaintiff during
the eviction of the Plaintiffs from the rented premises, for if the Plaintiffs had
lost anything from the said eviction same would have been factored in when
the 1st Plaintiff was writing Exhibit ‘5’ (the undertaking) coupled with the
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fact that the Defendant re-entered the rented premises due to the breach of
the Tenancy Agreement and per clause 4 of the Tenancy Agreement the
Plaintiffs lose their case against Defendant.
Also since it is further established that the 1st Plaintiff failed to pay rent due
from 1st January 2017 – April 2017, and 1st Plaintiff did sub-let the rented
premises to the 2nd – 4th Plaintiffs, the Defendant is entitled to his counter-
claim.
It is further established that the 1st Plaintiff wrote Exhibit ‘5’ (the
undertaking) to pay One Hundred Thousand Ghana Cedis (GH¢100,000.00)
to the Plaintiff), Exhibit ‘5’ should be held against the 1st Plaintiff.
Accordingly, the reliefs as endorsed in the Plaintiffs’ Writ of Summons are
dismissed.
I grant the reliefs as endorsed on the Defendant’s Counter-Claim against the
1st Plaintiff. I award GH¢30,000.00 General Damages in favour of Defendant
against 1st Plaintiff.
The 2nd, 3rd and 4th Plaintiffs also have no claim against the Defendant.
Cost:
Cost in this suit is assessed at GH¢40,000.00 in favour of the Defendant
against 1st Plaintiff.
(SGD)
WILLIAM BOAMPONG
(JUSTICE OF THE HIGH COURT)
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COUNSEL:
EDWARD SAM CRABBE ESQ, FOR THE PLAINTIFFS
KOFI ADDO ESQ, FOR THE DEFENDANT
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