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MRS. BANNERMAN QUIST & 1 OR v. MICHAEL AGBOTUI SOUSSOUDIS [27/7/2000] C.A. NO. 134/99.

IN THE COURT OF APPEAL, (CIVIL DIVISION), ACCRA,

______________________________

CORAM: BENIN, J.A. (Presiding)

       TWUMASI, J.A.

         ARYEETEY, J.A.

Civil Appeal No. 134/99

27TH July 2000 

MRS. BANNERMAN QUIST & 1 OR   ...  PLAINTIFFS/RESPONDENTS

VS.

MICHAEL AGBOTUI SOUSSOUDIS   ...  DEFENDANT/APPELLANT.

_____________________________________________________________________

 

 

BENIN, J.A.:

I would like to preface this decision with a few comments on landlord-tenant relationship in this country. The problem of landlord-tenant relations is one of the most frequently recurring matters that the law and society have still not succeeded in grappling with effectively. That is the position notwithstanding various enactment’s’ put in place, at one time or the other; some ad hoc only, others die out like a passing wind. In the face of all these difficulties and uncertainties in this area of law enforcement, one enactment, namely, the Rent Act, 1963 (Act 220), has stood the test of time, not withstanding the different and sometimes conflicting interpretations given to its various provisions. The very fact that this particular enactment, together with its regulations, namely, Rent Regulations, 1964 (L.I. 369), have survived even the revolutionary rent laws in the evening of the 1970’s and the early 1980’s is a sure indication that their provisions have come to be accepted and must be enforced by the courts in order to bring some sanity into the sometimes turbulent regime of landlord-tenant relationship.

One of the areas in this landlord-tenant relationship that very often evokes bitter conflict is that relating to rent assessment. It seems to me it is an area where the enactment is more honoured in its breach than observance. And quite ironically, the tenants themselves, who the law seeks to protect, are as guilty as the landlords when it comes to complying with the laws and regulations governing assessment of recoverable rent. Whatever the reasons may be, there is no justification for a court of law to fall prey to this non-observance of the rent law and its regulations. Indeed that is one of the serious questions raised in this appeal where the trial court appeared to have endorsed the plaintiffs’ claim for a rent increase without applying the laid down process for achieving that. Under relief 2 endorsed on the writ of summons, the plaintiffs sought an increase of a hundred per cent in the rent being paid by the defendant, their tenant. The basis for this increase, according to the evidence of the first plaintiff, was that the defendant had failed to pay any rent since the agreement expired in 1995. She admitted under cross- examination that before she took this action she did not go to the rent office. However, the trial judge upheld this claim. This is what the trial judge said: “I think a rent of ¢6 million per annum is reasonable having regard to the type of house in question and the location. I therefore order the defendant to pay rent of ¢6 million per annum with effect from 1/5/95 to the date he will give vacant possession or the date the plaintiffs will recover possession.”

The defendant appealed against this conclusion and order on two grounds, namely:

i) That the honourable trial Circuit Court Judge gravely erred when he granted respondents’ relief of ‘double rent’ when he has no legal power to assess rent and nowhere in the statutes is the issue of  ‘double rent’ provided.

ii) Wrongful or improper exercise of jurisdiction in assessing recoverable rent of premises.

Counsel for the appellant submitted that under the Rent Act, “assessment of recoverable rent is vested in the Minister who may refer, in accordance with such regulation, to the appropriate Rent Magistrate to assess the recoverable rent.” With all due respect to learned counsel this submission is not correct in so far as it sought to make the Minister the sole person permitted by law to authorise rent assessment. The Minister is given power under Section 11 of Act 220 to cause the appropriate Rent Magistrate; to assess the recoverable rent for any premises, whether public or private owned. Another power invested in the Minister is to be found in Section 13 of Act 220 whereby he is empowered to assess recoverable rent for similar premises in similar localities, particularly where such premises have been built out of public funds, and he is entitled to do this by executive instrument. Besides these powers that the Minister possesses, the Rent Officers are also empowered by Section 10 of Act 220 to assess the recoverable rent in certain given circumstances. The court is not empowered by this Act to assess rent in the first instance; it could do so if there is a reference to it by the Minister, or if it comes to it on appeal from an assessment by the rent officer.

 

Counsel for the respondents sought to get around this hurdle when he submitted that what the trial judge did was not tantamount to a rent assessment but only an evaluation of the evidence in deciding on what the rent should be. In counsel’s submission “where there was an agreement between the parties as is evidenced by exhibit A which agreement clearly and unambiguously stipulated the rent to be paid by the appellant, no issue of assessment arises. An assessment of rent envisages a situation where there is a dispute as to the rent to be paid.” This argument is basically misconceived in the sense that if the rent had been agreed upon there would have been no need to claim ‘double rent’; moreover, the rent fixed by the trial judge is not what the parties had agreed upon as contained in exhibit A. The fact that the trial judge considered it necessary to take into account factors like the nature and location of the property before settling on the recoverable rent clearly confirms that the trial judge embarked on a rent assessment. The trial court did not have the power to do that. As a statutory tenant, the defendant was living in the premises subject to the payment of the same rent as agreed upon under the previous agreement; until the landlady had reached a fresh agreement on rent with the tenant or has had the rent re-assessed under Section 10 of the Rent Act. These grounds of appeal succeed. However, the plaintiff is entitled to recover rent at the rate of ¢3 million per annum from 1/5/95, the date the agreement expired, to the 16th of May, 1999, the date that the appellant is said by his counsel to have vacated the premises in question.

The next ground of appeal argued by counsel for the appellant was that the trial Circuit Court exceeded its jurisdiction with respect to the claim and damages awarded. Counsel referred to the jurisdiction of a Circuit Court in liquidated claims which is limited to ¢10 million and in respect of landlord-tenant matters as set out in section 41 of the Courts Act, 1993 (Act 459). By the claim and the award made by the trial court, the plaintiffs were to recover about ¢37 million. He submitted that “the trial Circuit Court exceeded its jurisdiction under Act 459 in ordering recovery of arrears of rent in excess of its limit of ¢10 million as provided by law.” On the question of the huge rents claimed by the writ, it was counsel’s submission that “the trial judge ought to have referred the issue ... to the High Court by virtue of Section 41(2) of Act 459,” Alternatively, counsel submitted that “the trial Circuit Court could otherwise have determined the issue ... if the parties had given their consent. No such consent was however given.”

In his response, counsel for the respondents cited a reported decision of the High Court, which gives the Circuit Court jurisdiction. That was the case of WOOD VS. DADSON (1976) 2 G.L.R. 185. That was a case in which the rent magistrate awarded arrears in rent that was far in excess of its jurisdiction in liquidated claims; it awarded more than ¢10,000.00 even though its jurisdiction was limited to ¢2,000.00. The High Court, in upholding the award, said at page 187, per Edusei J. (as he then was), that “a claim for arrears of rent is not only a debt simpliciter; it is a debt with a difference—a debt arising out of a relationship between landlord and tenant and the Act does not limit jurisdiction of the district court when it comes to dealing with civil causes or matters relating to landlord and tenant. If it was the intention of the legislature to limit a district court in its jurisdiction as regards civil causes or matters relating to landlord and tenant it would have employed such words........”That case was on all fours with the instant one, notwithstanding the fact that it involved a District Court. What is important is the jurisdiction given to inferior courts and tribunals in landlord-tenant matters. So the trial Circuit Court was bound by it, being a court below the High Court. That decision itself is perfect in the sense that the inferior courts, which are given such jurisdiction primarily, determine what the periodic rent is, before the cumulative total is worked out arithmetically. And on arrears of rent, the primary jurisdiction is to handle matters affecting landlord and tenant, and rent may come up for consideration, and that per se should not deny its jurisdiction. Instances abound in such jurisdictional areas. One is matters relating to maintenance claims under the Maintenance of Children Decree, 1977 (S.M.C.D.133). Jurisdiction under that Decree is conferred on family tribunals established under it, which tribunals are part of the inferior courts, equated with District Courts, now Community Tribunals. Yet it cannot be argued that a claim for maintenance under that Decree is beyond that tribunal’s jurisdiction; or can one complain that the tribunal exceeded its jurisdiction by awarding a sum of maintenance which is in excess of its ordinary civil jurisdiction. The same applies to arrears in contribution to the Social Security fund. Where special enactment has been passed that gives jurisdiction to a particular court to hear certain matters, it must be assumed that it invests that court with all powers relating to the subject-matter, unless express words to the contrary are used, or it could be inferred from its plain language that its jurisdiction is circumscribed. In such a situation, it could not be justified to rely on another enactment that does not make a direct reference to the special enactment to say its jurisdiction is ousted inferentially under the other enactment. The other enactment must specifically or expressly oust the exercise of jurisdiction or give jurisdiction to another court or tribunal. This ground accordingly fails and is dismissed.

Another ground of appeal raised was that the trial judge was biased in accepting and relying on address filed by plaintiffs before evidence was concluded. Counsel’s complaint was that the trial court accepted and relied on an address that was filed for the plaintiffs long before the oral evidence was completed. That the trial Judge ignored this anomaly when his attention was drawn to it. Counsel therefore submitted that “this action by the trial Judge constituted bias against the defendant....” Really I fail to understand the purpose of this ground, except that one can read through it an attempt to embarrass the trial Judge. This is because, as explained by counsel for the plaintiffs, the filing took place on August 25, 1998, and not on May 25, 1998. Indeed the court copies bear the date 25 August, 1998. So that if his copy bears a different date, then Counsel ought to have accepted the explanation that it could only be a mistake, and I believe a genuine one too. That it could have been the result of a mistake is borne out by the contents of that address, in which reference is made to the evidence of the defendant’s own witness, named Quarshie and described in the proceedings as DW4. The said Quarshie was the third witness who testified for the defendant after the 25th of May, 1998, the date counsel claims the address was filed. There is no allegation that plaintiffs’ counsel knew in advance who the witnesses for the defendant were going to be. And even if it is said that counsel for the plaintiffs had foreknowledge of the witnesses for the defendant, how would he have known the order in which they were going to give their evidence as to enable counsel describe Quarshie as the fourth witness in his submission? And how on earth would he have known what exactly the said witness was going to say as would enable him rely on his testimony in his written address even before he had taken the witness stand? Much as counsel is allowed a lot of room to conduct a case for a client, it must be borne in mind that the dignity and credibility of the legal profession is also on the line, so baseless accusations should not find their way into our work. I believe it is sufficiently clear that counsel for the defendant never read the address of his opposite party before he made those wild charges, which I am more than convinced were only aimed at embarrassing the trial judge. This ground of appeal is as callous as it is unprofessional; it's simply without any basis or merit and is accordingly rejected.

Next counsel for the appellant referred to the defendant’s counter-claim wherein he had claimed for the cost of constructing a fence wall, which was damaged by excess rains. At the time that the wall collapsed, this action was already pending before the court below. The defendant began to reconstruct it and notified the plaintiffs accordingly. He also pleaded it and made same the subject of his counter-claim. The plaintiffs’ response was that the defendant did not have their consent to construct that broken wall.

I consider it necessary to quote in extenso what the trial Judge said on this issue. He said: “the evidence shows that when the fence wall collapsed and the defendant evinced an intention to reconstruct it on his own the plaintiffs specifically wrote to request him not to construct the collapsed wall. The plaintiffs stated in the said letter which was tendered as Exhibit 3 that the collapsed fence wall was constructed by the Labone Secondary School and that the school had invited personnel of the Field Engineers Regiment of the Ghana Armed Forces to inspect the collapsed fence and advise them on what to do. The plaintiffs therefore advised the defendant to desist from constructing the fence wall and to vacate the property. Inspite of this advice the defendant engaged workers and reconstructed the collapsed fence wall. It is clear that the defendant undertook to reconstruct the fence wall without the authority of the plaintiffs and landladies and in complete disregard to the clear request by them to him not to reconstruct the collapsed fence wall. If the defendant chose to undertake the reconstruction when he had been asked not to do so then he cannot be heard to say that the plaintiffs as landladies should refund expenses incurred on the fence wall. It is my finding that the defendant is not entitled to any refund in respect of any expenses he incurred in reconstructing the fence wall."

It is significant to note that the 1st plaintiff said under cross-examination that they (the plaintiffs) would have constructed the wall if the defendant had not done so. This was a very important piece of evidence the relevance of which entirely escaped the trial Judge. The plaintiffs recognised the need to re-build this wall, except that they did not want the defendant to do it for them, because they had sued him for recovery of possession. But the defendant remained a statutory tenant who was entitled to the full protection of the law and to enjoy the premises to the full, including all its existing fixtures, which by paragraph 3c of exhibit A he was enjoined 'to keep in good and tenantable repair', fair wear and tear excepted. No doubt a fence wall is a fixture being permanent in character. But could the defendant reconstruct without the consent of the landlady? Wear and tear, when applied to demised premises, do not include total destruction by a catastrophe which was never contemplated by either party. So this wall whose collapse occurred through an act of God does not come within paragraph 3c of Exhibit A.

Counsel for the plaintiffs relied on paragraph 3f of Exhibit A which is one of the tenant's covenants which prohibits him from making 'any alterations or additions to the property without the written consent of the landladies.' Counsel's submission was that the defendant acted in breach of this covenant by constructing the fence wall in the teeth of all the opposition from the plaintiffs. I think by 'additions' is meant structural additions. But as said in RE LEVESON-GOWER'S SETTLED ESTATE (1905) 2 Ch. 95, per Swinfen Eady, J. at page 98 "the erection of a new building in place of an old building is not an addition to or alteration in that old building." Thus by erecting a new fence wall in place of the old one which had collapsed the defendant could not be said to be in breach of this covenant. If anything at all the defendant's assertion that the fence wall was absolutely necessary to a complete enjoyment of this property was never disputed. The house shares common boundary with the Labone Secondary School at the point where the wall collapsed, and no one can deny the necessity in closing such a wall to the students. Besides a fence wall is a kind of protection for the safety of at least property in the premises, and also to secure the privacy of the occupants therein. For that reason the law excepts such construction, without being in breach of the covenant. In other words, alterations or additions, which are reasonably necessary for the enjoyment of the premises, or absolutely or reasonably essential for the purpose for which the premises were taken, do not amount to a breach of the covenant against alterations and additions. I think it was the failure to consider this exception, which applies that, led the trial court to hold that the plaintiffs were not responsible for the cost of re-construction. So long as the plaintiffs admitted they were responsible for it, the fact that the defendant did the actual construction against their wish would not enable them to escape responsibility for paying for the cost of repairs. This is because the evidence was clear that the plaintiffs were not prepared to do it because they did not want the defendant to continue to stay in the house. It could thus pass for inducing the tenant to quit which the Rent Act frowns upon, see s.27 thereof. Time was of the essence if the defendant was to have his property in the house protected and to secure his privacy, so he was justified in erecting the fence wall following the plaintiffs' refusal in doing so when requested by the defendant as per his letter of July 6, 1995—Exhibit 2. The plaintiffs did not reconstruct the wall, and unreasonably withheld consent in the circumstances. The trial Judge, therefore, erred in refusing the claim by the defendant for a refund of the sum spent on this by him, which cost was put at ¢5 million. This ground of appeal is accordingly upheld.

The two remaining grounds, namely failure to visit the locus in quo and adverse comments alleged to have been made by the trial Judge against the defendant, to my mind, do not have any impact on this case. A trial court is not bound to visit the locus in quo. Though desirable in certain cases, yet failure to visit the locus is not fatal to a court's decision if there is sufficient evidence to support its findings. A court must be very certain a visit to the locus in quo will help it determine matters in controversy between the parties, otherwise such a visit could even amount to an abuse of its discretion, as happened in the case of DARFOUR JNR. V. BOATENG (1976) 2 G.L.R. 191 CA.

I consider the remarks passed on the personal character of the defendant by the trial Judge as rather unfortunate and undesirable. But to the credit of the Judge all his decisions were based on the facts in evidence and what he perceived the law to be. But I think we, as Judges, should be wary of passing adverse comments on a party's character unless it's in issue or unless evidence has been led and the Judge is relying on it to destroy his credit. But reckless and unnecessary remarks must be avoided. So in conclusion, the appeal is allowed to the extent that the trial court erred in assessing the recoverable rent when it did not have the power to do that. However, the plaintiffs are entitled to recover rent at the rate of ¢3 million per annum from the expiry of the agreement to the date the defendant vacated the premises, as earlier stated. The appeal is also allowed to the extent that the defendant was entitled to be reimbursed the cost of ¢5 million spent on re-constructing the fence wall. In order to bring this dispute to an end in the present proceedings, the sum of ¢5 million spent on rebuilding the fence wall should be deducted from the total rent the plaintiffs have been adjudged to be entitled to recover and the difference is ordered to be paid by the defendant to the plaintiffs. The appeal is dismissed on all the other grounds.

A. A. BENIN, J.A,

TWUMASI, JA: 

I had the opportunity of reading beforehand the learned and analytical judgment of my brother Benin and I agree with the conclusions he arrived at on each ground of appeal and have nothing more useful to add.

I would allow the appeal.

P. K. TWUMASI

JUSTICE OF APPEAL

ARYEETEY, JA:

I agree

B. T. ARYEETEY

JUSTICE OF APPEAL

COUNSEL

Kofi Aidoo Representing Defendant/Appellant

Amponsah-Dadzie for Defendant/Appellant

C. Hayibor (with him Ms.) for Plaintiff/Respondents.

 

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