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GHANA BAR REPORT 1994 -95 VOL 2

 

Shiristar Container Transport Ltd  v Ashanti Goldfields Company Ltd and another [1994 - 95] 2 G B R 715 – 718 C A

                                                                            COURT OF APPEAL

LAMPTEY, ADJABENG, LUTTERODT, JJA

3 NOVEMBER 1994

 

Practice and procedure – Writ – Amendment – Application to amend after judgment – Whether trial court has power to grant amendment – Whether appeal court may grant amendment – Court of Appeal Rules 1962 (LI 218) rr 31 and 32.

The plaintiff sued the defendants in the High Court for damages for conversion of the plaintiff’s shipping containers. The 1st defendant submitted to the claim for general damages in the course of the trial and the trial judge entered judgment accordingly. The trial judge conceded that the plaintiff was entitled to damages for loss of use but disallowed it because it was not endorsed in the writ. Four days after the judgment, the plaintiff sought leave to amend the endorsement and statement of claim with a claim for damages for loss of use but the trial judge held that he had no power to grant such application. The plaintiff argued on appeal that the trial judge erred as the claim was indeed pleaded in the statement of claim and evidence was adduced thereon. Counsel for the defendant on the other hand argued that the claim for loss of profits was not particularised as special damages in the statement of claim neither was it endorsed in the writ of summons.

Held: (1) The trial judge rightly refused the unprecedented application for amendment four days after the judgment. Amendment could be sought during the trial, at the delivery of judgment or immediately after judgment but before the judge rose from court. Yeboa v Bofour [1971] 2 GLR 199, CA, Rainy v Bravo (1872) 36 JP 788, PC, James v Smith (1891) 1 Ch D 384, Priest Bobo v Anthony (1931) 1 WACA 169 and Wyatt v Roshuerville Gardens Co (1866) 2 TLR 282 referred to.

(2) An appellate court would entertain such belated application under rr 31 and 32 of the Court of Appeal Rules 1962 (LI 218) because an appeal was a rehearing. There being no dispute that the plaintiff was deprived of profits it was fair to grant the amendment for all matters in controversy to be determined once and for all. Yeboa v Bofour [1971] 2 GLR 199, CA, Tildesley v Harper (1878) 10 Ch D 393, CA referred to.

(3) The argument that the claims were neither particularised in the statement of claim nor endorsed in the writ was unimpressive as the 1st defendants in the course of the trial submitted to judgment on the claim for damages for conversion.

Cases referred to:

Ilkiw v Samuels [1963] 2 All ER 879, [1963] 1 WLR 991, 107 Sol Jo 680, CA.

James v Smith [1891] 1 Ch D 384, 63 LT 524, 39 WR 396.

Nkyi XI v Kumah [1959] GLR 281, CA.

England v Palmer (1955) 14 WACA 659.

Priest Bobo v Anthony (1931) 1 WACA 169.

Rainy v Bravo (1872) 36 JP 788, LR 4 PC 287, 27 LT 249, 20 WR 873, 9 Moore (NS) 35, 17 ER 427, PC.

Robertson v Reindorf [1971] 2 GLR 289.

Tildesley v Harper (1878) 10 Ch D 393, 48 LJCh 495, 39 LT 552, 27 WR 249, CA.

Wyatt v Rosherville Gardens Co (1866) 2 TLR 282.

Yeboa v Bofour [1971] 2 GLR 199, CA.

Yeboah v Kwakye [1972] 2 GLR 39, CA.

APPEAL against the judgment of the High Court to the Court of Appeal.

E S Aidoo for the appellant.

Stanley Amarteifio with Mrs Ewool for the 1st respondents.

ADJABENG JA. On 9 July 1990, the plaintiff-appellant herein took action against the defendants-respondents at the High Court, Accra, and claimed as follows:

“The plaintiff’s claim is against the defendants jointly and severally for wrongfully depriving the plaintiff of 23 containers and refusing to deliver same up to the plaintiff and converting the containers to their own use and for damages.”

In paragraphs 12, 13 and 14 of the statement of claim, which was, filed subsequently, the plaintiff averred as follows:

“12. In consequence of such conversion the plaintiff was prevented from leasing out its shipping containers and its interest in them and lost all the income that it would have received for the same and has incurred considerable expenses in conducting correspondence and sending agents from the United Kingdom for the release of the containers.

13. The value of the said 23 containers (ie the depreciated replacement value) as at August 1984, was sixty five thousand two hundred and seventy nine pounds and the plaintiff claims additionally interest on that amount at the rate currently charged by the commercial banks.

14. Wherefore the plaintiff claims the amount stated or indicated in the last two paragraphs and damages from the defendants jointly and severally.”

The defendants, in their statements of defence, denied that they were liable to the plaintiff’s claim. In the trial that ensued, however, only the 1st defendants took part. The 2nd defendant did not attend the trial. During the addresses, counsel for the 1st defendant corporation, according to the trial judge, “conceded that since the second defendant did not participate in the proceedings it would be futile if he persisted in his stand that the first defendants were not liable. He therefore submitted that the only issue left for determination of the court as between the plaintiff and the first defendants be the assessments of damages.” The trial judge made the following determination:

“It seems therefore that in determining the depreciated value of the containers the time we have to take into account would be 1989 when the first defendants committed the trespass complained of. Therefore going by exhibit 1 which was tendered in evidence by 1st defendants I am of the view that taking into account world inflationary trends, which I take judicial notice of £700 per each container would be a fair measure of what the plaintiff is entitled to claim from the defendants.”

The trial judge accordingly awarded the total sum of £16,100 against the defendants jointly and severally as the depreciated value of the 23 containers in issue at £700 per container.

In respect of the loss of use of the said containers which the plaintiff mentioned in paragraph 12 of their statement of claim, and in respect of which PW1, who had flown from United Kingdom, gave evidence and indeed exhibit H, the trial judge was of the view that the plaintiff was not entitled to any damages for loss of use:

“Counsel for the plaintiff has also drawn court’s attention as to what was lost to the plaintiff as a result of the conversion and for which the plaintiff must be compensated. With due deference to learned counsel for the plaintiff it must be pointed out that the indorsement on the writ does not mention any claim for special damages. As referred to in Flemming’s Law of Torts (supra) the claim for special damages for the loss which the plaintiff suffered as a result of the defendants’ conduct would be in place. However the plaintiff’s pleading was silent on any claim for special damages. Therefore as against the first and second defendants the plaintiff cannot succeed in its claim for special damages for loss of use.”

The plaintiff was not satisfied with the judgment and so after the reading of the same, the plaintiff applied to the trial judge for leave to amend the indorsement on the writ and the statement of claim for the purpose of claiming special damages for loss of use as they had already adduced evidence on their claim. The trial judge refused to grant the application on the ground that he had no power to grant it after he had delivered his judgment since the application was not for the correction of any clerical mistakes or accidental slips or omissions in his judgment as provided for by order 28 rule 11 of the High Court (Civil Procedure) Rules 1954 (LN 140A).

The plaintiff appeals to this court against the ruling and also some aspects of the original judgment. The grounds of appeal are as follows:

“(1) The learned trial judge erred in refusing to award damages for the loss of use of the said containers;

(2) The learned trial judge was wrong in refusing to grant the application for the plaintiff-appellant for leave to amend his pleading after the reading of the said judgment;

(3) The learned trial judge erred in the assessment of the general damages; and

(4) The amount of costs awarded to the plaintiff clearly shows that the learned trial judge failed to take into account several important factors.”

Arguing these grounds together, counsel for the appellant first submitted that the trial judge was wrong in refusing to grant leave to amend the writ of summons and the statement of claim in respect of the claim for loss of use since evidence had already been adduced on the issue. Counsel argued that the trial court had power to allow the amendment even after the delivery of the judgment. Counsel’s view is that an amendment after judgment is part of the proceeding referred to in Order 28 rule 1 of the High Court Rules. He relied on the cases of Nkyi XI v Kumah [1959] GLR 281 at 285 CA, England v Palmer (1955) 14 WACA 659 at 660-1 and Ilkiw v Samuels [1963] 2 All ER 879. Counsel submitted that even though the writ of summons had not been indorsed with special damages, yet these have been pleaded in paragraphs 12-14 of the statement of claim and that evidence was adduced thereon. And that for these reasons the trial judge should have granted the amendment.

Counsel, however submitted that in any case this court could grant the amendment, and that this would not work any injustice on the defendant since evidence on the special damages for loss of use sought to be brought in had already been adduced and is on the record and that the principles stated by the Court of Appeal in the case of Yeboa v Bofour [1971] 2 GLR 199 had been satisfied. He therefore invited us to grant leave for the amendments. Counsel for the respondents disagreed with the contention by the appellant’s counsel that the trial judge was wrong in refusing to grant the amendment sought after the judgment had been delivered. Counsel however conceded that this court had power to grant the amendments sought. Nevertheless, counsel for the respondents invited us not to grant leave for the amendments. He argued that even though the appellants mentioned loss of profits in their statement of claim, they neither particularised this loss which is a special damage, nor did they indorse the same on their writ of summons. He relied on the cases of Robertson v Reindorf [1971] 2 GLR 289 at 297 and Yeboah v Kwakye [1972] 2 GLR 39.

I think that only two simple issues call for determination in this appeal. The first issue is whether or not the trial judge was wrong in refusing to allow the amendments sought by the appellant after judgment had been delivered. And the second issue is whether it would be proper for this court to grant the said amendments as requested. As regards the first issue, I must say that I have no doubt that the trial judge was right in refusing to allow the appellant to amend its writ of summons and statement of claim some days after the trial judge had delivered his judgment. I have noticed that the application was filed four days after judgment had been delivered.

I have not found any precedent where the amendment was granted days after judgment had been delivered. The nearest situation can be found in the case of Yeboa v Bofour (supra) where the trial judge after he had concluded his judgment, but before he could sign it, granted an application made orally for the amendment of the claim for damages so that the amount of damages claimed could be raised from ¢400 to ¢4,000. On appeal against the grant, the Court of Appeal confirmed the grant of the amendment. In the English case of Rainy v Bravo (1872) 36 JP 788, PC the plaintiff sought an amendment in the course of the reading of the judgement. The trial judge refused the application. But on appeal to the Privy Council, their Lordships thought it proper to direct that the amendment be made in their own words, “even at this last moment.” See also the cases of James v Smith (1891) 1 CH 384, Priest Bobo v Anthony (1931) 1 WACA 169 and Wyatt v Rosherville Gardens Co (1866) 2 TLR 282, which were all mentioned in Yeboa v Bofour (supra). It is clear therefore that the authorities supported the situation where the amendment was sought during the trial, at the time of the delivery of the judgment, or immediately after the delivery of the judgment but before the judge rose. I am not talking about a situation where Order 28 Rule 11 of the High Court Rules is invoked to correct clerical mistakes or accidental slips or omissions.

It seems to me that only the appellate court can intervene in a situation like the one the appellant faced in this case. I do not see how the trial court could have rightly granted the appellant’s amendment in issue days after the judgment had been pronounced when the application therefore was not one brought under Order 28 rule 11 of the High Court Rules. The appellate court can entertain such an application on appeal, it seems to me, only because an appeal is generally a rehearing of the whole case. See rules 31 and 32 of the Court of Appeal Rules 1962 (LI 218). It is not surprising therefore that the case of Nkyi XI v Kumah (supra) and England v Palmer cited by counsel for the appellant are cases in which the amendments granted were granted by appellate courts.

In the present case counsel for the respondents conceded that this court has power to grant the amendments sought by the appellant. Counsel however invited us not to grant the amendments. Counsel’s reason is that the damages for loss of profits were neither indorsed on the writ, nor were they particularised in the statement of claim even though they were mentioned therein.

I must say that I am not impressed by these arguments. As the trial judge rightly held in his judgment, the plaintiff would normally be entitled to damages for loss of profits arising from the conversion by the defendants of the plaintiff’s 23 containers. The learned trial judge however said he could not make any award because the plaintiff had failed to indorse on the writ of summons a claim for special damages for loss of profits. It must not be forgotten that the 1st defendant in the course of the trial submitted to judgment on the plaintiff’s claim for damages for conversion. So far as the 2nd defendant is concerned, he never contested the action at all.

There is no dispute that the plaintiff’s 23 containers have since 1984 been with the 1st defendant and thus the plaintiff whose business was the leasing of such containers for a fee has since then been deprived of the profits which it would have derived from the leasing of these containers. In such circumstances, it would be only fair and just to allow the plaintiff to amend the writ and statement of claim so that it can pursue the claims, which it thinks it is entitled to. This will make it possible for all the matters in controversy between the parties to be finally determined once and for all, especially when, as argued by the plaintiff’s counsel, evidence in respect of the amendments has already been adduced and is on the record.

As counsel for the plaintiff submitted, the amendments would not cause any injustice or surprise to the defendants as the evidence was not objected to. Indeed, PW1, who had flown from United Kingdom to give evidence, was cross-examined on these matters.

Azu Crabbe JSC in the case of Yeboa v Bofour (supra) at p 217 stated the general guiding principles in such matters as follows:

“The general principles which should guide a court in granting leave to amend pleadings have been stated in numerous cases. In Cropper v Smith (1884) 26 Ch D 700 at pp.710-711, CA, Bowen LJ said that:

‘It is a well established principle that the object of Courts is to decide the rights of the parties, and not to punish them for mistakes they make in the conduct of their cases by deciding otherwise than in accordance with their rights… I know of no kind of error or mistake which, if not fraudulent or intended to over-reach, the Court ought not to correct, if it can be done without injustice to the other party. Courts do not exist for the sake of discipline, but for the sake of deciding matters in controversy, and I do not regard such amendment as a matter of favour or of grace… It seems to me that as soon as it appears that the way in which a party has framed his case will not lead to a decision of the real matter in controversy, it is as much a matter of right on his part to have it corrected, if it can be done without injustice, as anything else in the case is a matter of right.’

In Tildesley v Harper (1878) 10 Ch D 393 at pages 396-397, CA Bramwell LJ also said: ‘My practice has always been to give leave to amend unless I have been satisfied that the party applying was acting mala fide, or that, by his blunder, he had done some injury to his opponent which could not be compensated for by costs or otherwise.’ ”

Having considered all the relevant matters in this appeal, I have come to the conclusion that leave ought to be granted to the plaintiff to amend the writ of summons and the statement of claim in terms as set out in the application for leave to amend. The matter should then be remitted to the trial court to enable the court of first instance consider the evidence on the record adduced in support of the matters the subject matter of the amendment, and to determine the damages for loss of profits, if any, and other remedies that the plaintiff may be found to be entitled to. I must say, however, that the award of £16,100 made by the trial court as the depreciated replacement value of the 23 containers must not be disturbed as that award is amply supported by the evidence on the record.

For the reasons and the purposes stated above the appeal is allowed.

LAMPTEY JA. I agree.

LUTTERODT JA. I also agree.

Appeal allowed.

S Kwami Tetteh, Legal Practitioner
 
 

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