JUDGMENT
MRS. JOYCE BAMFORD-ADDO, J.S.C.:
In this case the Plaintiff/
Respondent/ Respondent
(hereinafter referred to as
Plaintiff) was a transport owner
who owned Willow-brook Bus No.
AA 6835 which he used for his
transport business. The 2nd
Defendant/Appellant/Appellant
was a Bank carrying on business
in Ghana as Bankers (hereinafter
referred to as 2nd Defendant)
also owned a Willow-brook Bus
No. GZ 8643 which was used to
transport workers of the Bank to
and from work. On 24th November
1982 the Plaintiff sent his said
Bus to 1st Defendants workshop
called Robert Anum Motors for
repairs. The 2nd Defendant Bank
also had trouble with the gear
box of its Bus and sent it to
the same workshop for repairs.
It transpired that the 1st
Defendant surreptitiously
transferred the Plaintiff's gear
box from vehicle No. AA 6835 and
fixed it onto 2nd Defendant's
vehicle No. GZ 8643 and
abandoned Plaintiff's vehicle in
his workshop. When Plaintiff
discovered this theft of his
gear box he reported it to
Police who arrested 1st
Defendant and charged him with
stealing the gear box. He was
subsequently tried and convicted
at the Circuit Court and
sentenced accordingly.
Even though Plaintiff reported
the case to police in 1982 no
action was taken by them until
20th June 1983 when they wrote
to 2nd Defendant telling them of
the theft of the gear box fixed
in their vehicle and asking them
to release their bus for
investigation. Police sent a
reminder to this letter on 15th
August 1983 again asking for the
release of 2nd Defendants,
vehicle for investigation. The
latter replied by letter dated
18th August 1983 to say that the
bus was in a workshop for
repairs and that it would be
released to police as soon as it
was returned to them from the
workshop. 2nd Defendant failed
to send the vehicle to Police as
promised, even though it was
released to them from the
workshop but continued to use
the vehicle until it was
involved in an accident on lst
December 1982.
Then in March 1983 the 2nd
Defendant advertised for sale
certain vehicles in the Ghanaian
Times of the 26th March 1983
including the Bus No. GZ 8643 in
which the Plaintiffs gear box
was allegedly fixed. Police
then sent another reminder dated
28/3/1985 asking for the release
of the said vehicles for
investigations but this was once
again ignored by Defendant who
went ahead and sold the vehicle
fixed with Plaintiff's gear box
to another person.
On these facts Plaintiff
commenced action against
Defendants by a writ and
statement of claim filed on 22nd
September 1986 i.e. nearly 3
years and 3 months after police
first made contact with
Defendant requesting for a
release of the No. GZ 8643 bus
to them. Police should have
seized that bus themselves since
they had that power when
investigating a criminal case
but failed to do this.
In Plaintiff writ he claimed in
conversion and or in the
alternative in Detinue in
respect of his gear box
allegedly fixed in the 2nd
Defendant Willow-brook bus No.
GZ 8643. The Plaintiff’s amended
statement of claim was
formulated as follows:
"Claim 1. The Plaintiff claims
in conversion and Detinue
against the Defendants jointly
and severally special and
general damages for the loss of
use, and hire of Plaintiffs gear
box in his transport business
done with his Willow-brook Bus
No. AA 6803 and for loss of
profit therein from which loss
directly flows from wrongful
removal of the Plaintiff’s gear
box by 1st Defendant from the
Plaintiff's commercial bus
aforesaid and the wrongful
fixing of same onto the 2nd
Defendants Willow-brook Bus No.
GZ 8643 in or about November
1982 which the Defendant refused
to restore to the Plaintiff
despite demand for same by the
Plaintiff, whereof the Plaintiff
claims as aforesaid ¢28,560
daily sales from the operation
of the commercial transport
business aforesaid for 25
working days per menses from
1982 November up to date of
judgment plus interest on the
judgment at the current Bank
rate from November 1982 up to
the date of payment of same"
"Claim 2. Plaintiff further
claims jointly and severally
against the Defendants in
conversion and or in Detinue for
the prevalent replacement value
as at the date of judgment of
his gear box and interest on the
judgment debt at the current
bank rate from date of the
removal in or about November
1982 up to the date of judgment
or date of payment”.
The 2nd Defendants denied this
claim. They claimed that after
the 1st Defendant had effected
repairs on their gear box they
paid the agreed contract sum of
¢21.065.00 for the repairs and
that they did not make any other
payment for the purchase of any
gear box. After the trial of
the case at the High Court,
judgment was given for the
Plaintiff in detinue and
accordingly damages were
assessed against the Defendant.
The Defendant appealed to the
Court of Appeal for a reversal
of the High Court judgment
finding them liable in detinue
and for judgment to be given in
their favour. The Plaintiff
also cross appealed not on the
judgment given in his favour in
detinue by the trial court but
on the quantum of damages
awarded to him namely
“(a) The Learned Trial Judge
inadvertently omitted to award
interest on the judgment debt
even though interest was claimed
in Plaintiff/Appellants
endorsement.
(b) Alternatively it was a wrong
exercise of judicial discretion
not to have awarded interest."
After the hearing of the appeal
the Court of Appeal set aside
the judgment of the High Court
in respect of the claim in
detinue and substituted a
finding in conversion namely the
alternative claim of plaintiff
and also modified the quantum of
damages awarded by the High
Court. Dissatisfied with this
decision the Defendant appealed
to this court on the following
important grounds that:
1. The trial Judge having
considered the Plaintiff claims
of conversion and in the
alternative in detinue and in
her judgment and on the merits
having allowed the Plaintiffs
claim in detinue and has hereby
rejected the plaintiffs claim in
conversion the Court of Appeal
erred in law, when after setting
aside judgment of the trial
court in detinue on appeal,
substituted the same prorio motu
with a judgment in conversion
when the plaintiff had neither
appealed nor cross appealed
against the trial courts
rejection of the alternative
claim in conversion".
2. Even if the Court of Appeal
had power to entertain in this
appeal proprio motu the issue of
conversion, having regard to the
indisputed evidence that neither
the plaintiff himself nor any
person on his behalf made any
specific demand on the
Defendant/Appellant for the
returning of the gear box, the
Court of Appeal erred in law in
holding that Defendant/
Appellant is liable in
conversion when the
Plaintiff/Respondent failed to
prove the essential elements
which constitute the sort of
conversion.
Ground 3
The Court of Appeal erred by
applying the wrong principle in
the assessment of damages and as
a result assessed the
Plaintiff/Respondents damages so
high as to result in an entirely
erroneous estimate of the
Plaintiff/Respondents damages”.
Ground one and two would be
taken together. In the writ of
Plaintiff he was claiming in
detinue and or in the
alternative in conversion. This
was the case the trial judge was
considering and it is the same
evidence which would support
either of the two. At the trial
two main issues among others
which were set out by Plaintiff
in the summons for direction
were in respect of conversion
namely:
“1. whether or not 2nd Defendant
failure to surrender the bus and
gear box as and when demand and
eventual sale of same amounts to
conversion against the plaintiff
and
2. whether the acts done by 2nd
Defendant's Transport officer
and knowledge acquired by him in
the course of his employment as
same amount to conversion
against plaintiff."
The trial judge after hearing
evidence, held that the
Defendant’s were liable in
detinue. On this findings the
2nd Defendant appealed to the
Court of Appeal which court
affirmed the judgment of the
High Court. Defendant again
appealed to this court as per
grounds of appeal. The argument
of the Defendant is that the
Plaintiff’s cross appeal did not
ask the Court of Appeal for a
variation of the High Court
judgment in detinue to
conversion, therefore it was
wrong for the court to suo motu
substitute a finding in
conversion with one in detinue.
As stated above, not only did
the plaintiff claim in detinue,
but also in the alternative in
conversion which is not an
inconsistent claim. In any case
the summons for Direction dealt
only with issues in conversion
and also, the evidence before
the court supported conversion.
For these reasons when the Court
of Appeal was dealing with the
Defendant’s appeal, to have the
said court set aside completely
the trial court’s finding in
detinue against them, the Appeal
Court did not accept this prayer
and was within its powers, to
made the alternative finding in
conversion, irrespective of the
fact that the plaintiff had not
filed appeal in this regard,
considering that the plaintiffs
claim was for either detinue or
conversion and also that there
was clear evidence of conversion
rather than that of detinue.
There being evidence to support
the finding of conversion the
Court of Appeal rightly
exercised its powers to make
that finding.
Her Lordship Justice Wood
correctly analysed the law on
conversion vis-à-vis the
evidence in this case namely
“The authorities show that to
constitute conversion there must
be
(a) wrongful dealing of the
subject matter in a manner
clearly inconsistent with the
owners right; and
(b) secondly that the tort
feasor evinced an intention to
deprive the owner of his right.”
These are the ingredients that
constitute the tort of
conversion.
Her Lordship then went on as
follows:
'The most distressing matter is
that though the unlawful sale of
the gear box was brought to
their notice they nevertheless
persisted in its use and
eventually sold the bus, sad to
say not to the respondent but
another person altogether. These
are all positive acts, showing a
deliberate and wrongful act
inconsistent with the
respondents rights and an
intention to deprive him of his
right. I think they ought to be
found liable in conversion".
And she was supported by
Lamptey, J.A in his judgment
thus:
“The Bank did not acquire any
title to that gear box. The Bank
converted the plaintiffs
secondhand gear box ... The gear
box belonged to the plaintiff.
The 1st Defendant stole it and
sold it to the Bank. The sale
was not in market overt. The
Bank had not satisfied the court
that it bought the second-hand
gear box in good faith and at a
fair and reasonable price. The
Bank asserted adverse title to
the gear box and sold it. I am
satisfied that there was a
demand on the Bank for the
return of the gear box belonging
to the plaintiff. I find the
Bank failed and refused to
return the gear box. I find that
the evidence before court proved
and established the case of
conversion of the gear box by
the Bank."
“Conversion" according to Clerk
& Lindsell on Tort 16th Edition
says:
"It is conversion when a person
entitled to the possession of a
chattel is permanently deprived
of that possession and the
chattel is converted to the use
of someone else. Here the wrong
is not merely an interference
with the Plaintiff's possession
or interest in his chattels but
also an injury to his right or
title in them."
Whereas an action in detinue
"lay at the suit of the
plaintiff having a right to
immediate possession, for a
chattel, for the wrongful
detention of his chattel by the
Defendant, evidenced by the
Defendants refusal to deliver it
up on demand and the redress
claimed was the return of the
chattel or payment of its value
together with damages for its
detention, in conversion there
should be an act of deliberate
dealing with a chattel in a
manner inconsistent with
another’s right whereby the
other is deprived of the use and
possession of it and not just a
mere refusal to deliver the
chattel to into the possession
of the owner.
In this case not only did the
Defendant have notice of the
fixing of the stolen gear box of
the Plaintiff in their bus, not
only did it fail to hand over
the bus to police or Plaintiff,
but Defendant continued to use
the bus with the said gear box
for business to their advantage,
and eventually ignoring police
intervention actually sold the
bus with its stolen gear box to
another person. This action of
Defendants undoubtedly
constitute wrongful denial of
Plaintiff right and title to the
gear box, considering that to
their knowledge 1st Defendant
had been convicted of stealing
the gear box. It also shows the
intention of Defendant to
permanently deprive the
Plaintiff of his property such a
behaviour was plainly
inconsistent with plaintiff’s
right or title to the gear box
and amounted to conversion.
See Lancashire and Yorkshire
Railway v. Mac Nicoll (1919) 88
L.T. K. B. 601
Wherein it was stated that:
“Dealing with goods in a manner
inconsistent with the right of
the true owner amounts to a
conversion, provided it is also
established that there is an
intention on the part of the
Defendant in so doing to deny
the owner’s right, or to assert
a right which is in fact
inconsistent with the owner’s
right.”
In conclusion having myself
carefully considered the law and
the evidence in this case I
agree with the decision of the
Court of Appeals in finding in
conversion rather than detinue
against Defendant and I so hold.
As regards to other ground of
appeal in respect to quantum of
damages awarded against the
Defendant my Brother
Hayfron-Benjamin J.S.C. has
dealt with this ground in his
judgment to be filed later and I
agree with him that damages be
accessed at ¢10 million cedis
plus interest.
Except for the variation made in
respect of the quantum of
damages I would dismiss this
appeal.
C. HAYFRON-BENJAMIN, J.S.C.:
This is a second appeal wherein
the Court of Appeal affirmed the
decision of the High Court on
different grounds. The Plaintiff
in an imprecise indorsement of
his Writ of Summons and
uncertain statement of claim,
claimed damages for the
conversion of his gear box or
the value thereof at the market
price of ¢250,000.00 jointly
severally or in the alternative
against the Defendants. The
Defendants were the 1st
Defendant the owner of the
garage to which the Plaintiff's
Willowbrook Bus had been sent
for repairs and the 2nd
Defendant was the Standard
Chartered Bank Limited into
whose Willowbrook Bus the
Plaintiff's similar vehicle’s
gear box had been placed or
fitted. There is evidence that
the 2nd Defendants took their
bus away from the garage with
the Plaintiff's gear box thereon
and though the matter was
reported to the Police who
requested to examine the bus
and, inspite of several attempts
by the Plaintiff to recover his
gear box, the 2nd Defendants
nevertheless used the vehicle
containing the gear box for
about 2 years and subsequently
disposed of the vehicle to some
other persons. It seemed that
when the 2nd Defendants
advertised the bus containing
the Plaintiff's gear box and
another bus for a joint sale.
The Plaintiff in an effort to
recover his gear box made a bid
for the 2 buses, but his bid was
not accepted by the 2nd
Defendants. Before us the 2nd
Defendants, if I understand them
correctly, contend that in so
bidding for the buses when he
knew that one of the buses
contained his own gear box the
Plaintiff was now estopped from
laying any claims to the said
gear box. That matter will be
considered later in this
opinion.
For the present it is
interesting to note that at the
close of the evidence of the
parties and before the
addresses, Counsel for the
Plaintiff moved to amend his
statement of claim made on the
2nd July, 1991 and a second
motion dated 9th July, 1991,
praying
"for the Honourable Courts LEAVE
to amend the
Plaintiff/Appellant's
indorsement in this action as
contained in the
Plaintiff/Appellant’s amended
statement of claim filed on the
3rd October, 1986 on the grounds
contained in the supporting
affidavit annexed hereto".
In the amendment dated the 3rd
October, 1986 referred to in the
immediately preceding prayer
cited above, which by the rules
of Court and in virtue of the
fact that the writ had been
issued on the 22nd September,
1986 the Plaintiff was entitled
to file the amendment without
leave. The Plaintiff had
amended his writ thus
“(1) The Plaintiff claims in
conversion against the 1st
Defendant and the 2nd Defendants
jointly and severally.....
(emphasis mine).
(2) And Plaintiff further claims
jointly and severally against
the Defendants the value of gear
box at market price of
¢250,000.00 for this wilfull
conversion because it is
intentional”. (emphasis mine).
At the hearing of these 2
motions before her Lordship,
Counsel for the Plaintiff
withdrew his motion filed on the
2nd July, 1991 and the Court
granted the Plaintiff’s motion
to amend the indorsement on his
writ of summons and the
statement of claim dated 9th
July, 1991. On the 7th
February, 1992, the Plaintiff
filed the amended statement of
claim without, as it appears,
amending the indorsement. The
amendment having been filed
about 7 months after it had been
granted was ipso facto void see
Order 28 rule 7 of the High
Court Rules and AYIWA VRS.
BADU. The Court was therefore
properly left with the original
writ as amended on the 3rd
October, 1986.
Summons for Directions having
been agreed, the Learned High
Court Judge set them out in
extenso in her judgment. From
the 6 issues set down for trial
the principal issue was
“1. Whether or not the 2nd
Defendant has converted the gear
box of the Plaintiff". (emphasis
mine).
The other issues were ancillary
to or supportive of proof of
conversion. It appears to me
therefore that the issue of
detinue was not raised for
trial. In the course of the
hearing the Plaintiff sought to
amend the indorsement on his
writ to claim
"detinue against the 1st and 2nd
Defendants jointly and severally
special damages or as general
damages ¢28,500.00 per diem..."
As I have already stated, this
and other amendments sought by
the Plaintiff except one became
void by reason of the
Plaintiff’s non-compliance with
the rules of Court.
Consequently the Court could not
countenance them.
In her judgment her Lordship in
the High Court, held that:
"The witnesses impressed me as
people who knew what they were
talking about and
saying what they did in truth,
sincerity and honesty."
Further in her judgment the
Learned Judge proceeded
“I will hold their evidence
impresses me as true.”
Her Lordship, cautioning herself
when evaluating the performance
of the witnesses by not relying
solely on the uncertain guide of
demeanour reviewed the evidence
and came to the conclusion that:
"the gear box which was on the
2nd Defendant's bus as it was
driven from the 1st Defendant's
workshop on the day in question
was the gear box which belonged
to the Plaintiff."
In the light of her review of
the evidence and her conclusions
about the gear box being
“driven” in 2nd Defendant’s bus
out of the 1st Defendant’s
workshop the Learned Judge
committed an error that:
"the 2nd Defendant became liable
in detinue as at August, 1983
when Police informed him that
they were investigating a case
in which the 1st Defendant was
suspected to have put the
Plaintiff's gear box into their
Willowbrook bus, they did not
pay heed to the Police letters
but went ahead to sell the bus.
They were therefore liable in
detinue.”
Further in her judgment her
Lordship fixed the 2nd
Defendant/Appellants before us –
firmly with liability when she
wrote
“I have no doubt that the 1st
Defendant’s statement is exactly
what happened. It corroborates
beautifully the evidence of
PW.1, PW.2 and PW.6 and even
that of PW.3 who told him that
he had put the Plaintiff’s gear
box into the 2nd Defendant’s
bus.” (emphasis mine).
Of the case for the 2nd
Defendant, her Lordship observed
it was the 2nd Defendant's
“intention”…. “to deny that
anything was done to their gear
box.” Having thus recognised
that the issue for trial was for
damages for conversion, the
Learned Judge unjustifiably
found the liability in Detinue.
It seems to me on a closer look
at that part of the record
containing the proceedings
before her Lordship that there
was confusion of thought on her
part leading to her
conclusions. The learned judge
even confused special damages
with general damages and gave
such astronomical figures for
both these heads of damages
which were unwarranted by the
evidence on record or the
principle upon which damages are
awarded
Now detinue consists of wrongful
detention of goods or chattels
belonging to another and the
refusal of that other to return
them upon demand to their
owner. An action in detinue is
therefore for the return of the
goods or their value. The value
of the goods is to be determined
at the time of judgment.
Damages are not an essential
component of action in detinue
unless they are specially
pleaded and proved by evidence
at the trial. True, there is a
thin line of difference between
detinue and conversion. But
whenever, as in the present
case, chattels belonging to one
person are appropriated to the
use of another the proper action
is in conversion. In so saying
I have derived much assistance
from the Learned Editors of
Clerk & Lindseld on Toris where
they state:
“The word conversion, however,
is the recognised legal
expression for the wrongful
deprivation of the possession of
goods and its use in this
artificial and fictitious has
now probably become inveterate".
Indeed such is the modern
situation that where in normal
commercial relationships goods
or chattels are wrongfully taken
possession of, then the least
application of the goods or
chattel to any purpose
whatsoever will amount to
conversion. Conversion then is
the wrongful possession of goods
or chattel belonging to another
and the use thereof of the
chattel by that other. I need
not dilate on the situations in
which such wrongful possession
might amount to conversion.
Judging from the evidence it was
clear that the liability could
only be founded in conversion.
In any case, as I have said
earlier in this opinion the
primary issue for trial was
whether or not the 2nd
Defendants—'Appellants herein'
were liable in conversion.
Before us learned Counsel for
the Appellants, relying on the
authority of DAN vs. ADDO,
contends that their Lordships in
the Court of Appeal were wrong
in substituting their own view
of the case for what had been
found by the trial judge. With
great respect to counsel I think
he misconceives the
circumstances under which such a
submission would succeed. In
the present appeal I have noted
that the principal issue which
was clearly set down and agreed
upon by the parties for trial
was whether the Appellants were
liable in conversion for the
wrongful appropriation of the
Respondent's gear box. It must
also be noted that in making his
claim the Respondent—then
Plaintiff—stated his claim very
widely. Indeed his claims
against the Defendants were
“jointly severally or in the
alternative". In such
circumstances if the Learned
judge in the High Court found
for a different liability, it
was she rather who had
substituted another case
(liability) for what the
Plaintiff prayed. The Appellate
Court on the evidence was
therefore right in re-stating
the correct
liability—conversion. In DAN v.
ADDO, supra, the learned trial
judge having resolved the issues
for trial in favour of the
Plaintiff, nevertheless gave
judgment for the Defendants
“basing himself on details on
which no evidence had been
adduced since they did not form
part of the respondent's case or
disclosed by the pleadings".
Clearly for the principle in Dan
vs. Addo to apply the Appellate
Court must not only examine the
evidence but it must also look
at the pleadings and the issues
set down for trial. As it
happened it was rather the
Appellant before us who was
advancing the contention that
the Court of Appeal had
substituted a finding of
conversion for the High Court
judge's finding in detinue.
Learned counsel could not be
correct. Learned counsel
concedes in his submissions that
“At the trial two main issues
among others were specifically
set out by the Plaintiff
Respondent in the Summons for
Directions for determination as
to whether or not the 2nd
Defendant/Appellants act or acts
done by the 2nd Defendants
Transport officer amounted to
the tort of conversion".
(emphasis mine).
In my respectful opinion learned
counsel misconceived the correct
intendment of that principle as
enunciated in DAN vs. ADDO,
supra. If anything, as I have
found earlier, the learned High
Court judge had resolved the
issues for trial in favour of
the Plaintiff and she was bound
in compliance with Holding (1)
in the same DAN vs. ADDO case,
supra to give judgment in favour
of the Plaintiff. Indeed the
learned High Court Judge gave
judgment for the Plaintiff but
on the wrong ground which the
Court of Appeal was perfectly
entitled to correct. Such a
situation is entirely different
from the Appellate Court
substituting a case "propro
motu, nor accept(ing) a case
contrary to, or inconsistent
with" the presentations of the
parties — Learned Counsel for
the Appellants submits that
“even if the Court of Appeal has
power to substitute conversion
for detinue on its own motion as
it did, the Court of Appeal
misdirected itself and erred in
law by holding that the
Defendant/Appellants is (sic)
liable in conversion as the
Plaintiff/Respondent failed to
prove the ingredients
constitution the tort of
conversion."
Secondly, learned counsel for
the Appellants was not
contending that neither counsel
for the Respondent nor their
Lordships were not conversant
with the "ingredients" of the
tort of conversion, but rather
that
“the ordinary way of showing a
conversion by unlawful retention
of property is to provide that
the Defendant having it in his
possession refused to give it up
on demand by the party
entitled". (emphasis mine)
On the issue of the demand made
for the return of the gear box,
the learned High Court judge
found quite clearly that there
was a demand made therefor. Thus
wrote her Lordship
"the defence are saying that the
Plaintiff made no demand for the
return of the gear box. I hold
that in the light of the above
exhibits plaintiff did. Though
the Plaintiff categorically made
a demand for the return of his
gear box way back in 1983 and
the Defendants had notice
through their Transport officer,
MR. QUIST, who was their agent".
(emphasis mine).
Learned Counsel submits that a
demand in these circumstances
must be specific. I understand
this requirement to mean that
the demand may be formal or
informal or even casual but such
demand must be unconditional in
its terms and specifically
referable to the return of the
chattel or property so
appropriated. In my respectful
opinion there was overwhelming
evidence of demand for the
return of the gear box. In the
little known English case of
GENERAL & FINANCE FACILITIES
LTD. V. COOKS CARS (ROMFORD)
LTD. (196) 2 A.E.R 314. Diplick
L.J. at page 317 of the report
emphasised the distinction
between the two torts—detinue
and conversion—and stressed the
essential requirement for demand
before action brought in the
tort of detinue. Thus wrote his
Lordship
“There are important
distinctions between a cause of
action in conversion and a cause
of action in detinue. The former
is a single wrongful act and the
cause of action accrues at the
date of the conversion. The
latter is a continuing cause of
action which accrues at the date
of the wrongful refusal to
deliver up the goods and
continues until delivery up of
the goods or judgment in the
action for detinue”
His Lordship continues:
“It is important to keep the
distinction clear, for confusion
sometimes arises from the
historical derivation of the
action of conversion from
definue sur bailment and definue
sur trover; of which one result
is that the same facts may
constitute both detinue and
conversion."
His Lordship then concludes:
“Demand for delivery up of the
chattel was an essential
requirement of an action in
detinue and detinue lay only
when at the time of the demand
for delivery up of the chattel
made log the person entitled to
possession the Defendant was in
actual possession or estopped
from denying that he was still
in possession."
Clearly if their Lordships found
the action to be stated in
conversion then demand for
delivery up of the gear box was
unnecessary and not in any case
an essential requirement for the
maintenance of the Plaintiff’s
claim.
Before this Court, the
Appellants seek to exploit a
slight variance in opinion
between two of their Lordships
and the inability of the third
of their Lordships in the Court
of Appeal to venture specific
support for either of his
colleagues save by concurring in
the decision. In the light of
the view which I take in the
instant appeal as regards the
requirement for demand for
delivery up of a chattel, if at
all, inaction for conversion, I
will not belabour the point and
that ground of appeal must fail.
As I have already premised, the
Appellants ground that the
Respondents bid for the
Appellants Willowbrook buses
when he knew that his gear box
was fitted into one of the said
buses could not amount to
estoppel so as to prevent the
Respondent from making his claim
therefor. It is of course trite
learning that an estoppel is a
rule of evidence, the effect of
which is to prevent a party from
denying a situation which he has
previously asserted to be so.
However, unlike the general rule
that evidence need not be
pleaded, estoppel must be
specifically pleaded. In the
instant appeal the Appellants,
as defendants, did not so plead
and this Court cannot
countenance that ground of
appeal. In any event it lay ill
in the mouth of the Appellants
to assert that the Respondent at
any time by this conduct denied
that he was the owner of the
gear box. The evidence on
record is replete with instances
of such demands for delivery up
of the gear box. A brief
comment on the Appellants
reliance on Section 26 of the
Evidence Decree 1975 (N.R.C.D.
323) will serve to illustrate
the irrelevance of the
submission to the case at bar.
Section 26 of the Decree
connotes a representation made
by a person to another which
impels him to believe in the
"truth of the thing”. In such a
case he will be estopped from
denying the existence of such “a
thing”. In the present Appeal,
however, the Appellants first
advertised the two buses with
the Respondents gear box in one
of them for sale before the
Respondent bid to buy them. It
cannot therefore by the stretch
of anyone's imagination be
asserted that it was the
Respondents bid that "induced"
the Appellants to sell the
buses.
The Appellants contend that
their Lordships in the Court of
Appeal
“erred in law by applying the
wrong principles in the
assessment of damages and as a
result asset the
Plaintiff/Respondents so high as
to resort (sic) in an entirely
erroneous estimate of the
Plaintiff/Respondents damages".
I agree that the damages awarded
was as I have said
"astronomical”. But that does
not mean that the Respondent was
not entitled to any damages. In
the GENERAL AND FINANCE etc. vs.
COOK CARS, supra, at page 318 of
the report DIPLOCK, L. J.
continuing his exposition writes
"The action in conversion is a
purely personal action and
results in a judgment for
pecuniary damages only. The
judgment is for a single sum of
which the measure is generally
the value of the chattel at the
date of the conversion together
with any consequential damage
flowing from the conversion and
not too remote to be recoverable
in law”.
The Appellants reference to and
indeed reliance on, the case of
YEBOAH vs. KWAKYE (1972) 2
G.L.R. 32 does not detract from
the principle as summed up in
the dictum of Diplock L.j. in
the GENERAL AND FINANCE case,
supra. If I understand the
passage in the YEBOAH case.
Supra correctly, all that is
being sought to illustrate is
the time from which the period
of recoverable as
"the date of formal demand and
refusal being often used as
evidence of the date of
conversion. "(emphasis mine)
Of course, there may be other
ways in which the conduct of the
wrongdoer may imply a demand for
the return of the goods or a
refusal so to return them. In
all cases, however, it is a
matter of evidence as to how and
when the wrongful detention was
communicated to the person in
wrongful possession of the
goods. In the present appeal
there was evidence on record
which taken together would show
clearly that a demand was on
behalf of the Respondent by the
Police; for in evidence at the
trial the Police Officer said
"On 7/6/83 I went to the Bank
with the intention of arresting
the driver of the Willowbrook
Bus belonging to the Bank. The
driver took me to the Transport
Officer, Mr. Quist. I informed
him about the case and the
investigation involving the
theft of the Plaintiffs gear box
that had been stolen and put on
the Bank’s Bus”. (emphasis mine)
Then again under
cross-examination of the 2nd
Defendants representative by
Counsel for the Plaintiff the
representative stated
“Q. It is clear that your Bank
received notice from the
Korle-Bu Police to bring the Bus
fixed with the gear box for
investigation?
A. Yes".
I think the confusion over the
necessity, if at all, of a
demand and refusal as a
precondition for action brought
arises from the difficulty of
Counsel and the Judges in
appreciating the thing but clear
live of distinction between the
torts of detinue and
conversion. In the former the
action is for restitution
intergrum and damages may be
exacted on account of the
special quality of the chattel.
In the latter the dealing with
the chattel is unlawful and the
action is for the recovery of
the chattel or its value
together with damages for
consequential loss where so
warranted or indicated. Demand
and refusal. If I thus
understand the decision in
YEBOAH VS. KWAKYE, supra, in an
action for damages for
conversion, the fact that there
was in demand and a refusal may
be evidence from which the date
of conversion may be
ascertained. In the present
appeal I find myself in
agreement with MRS. WOOD, J.A.
when she finally came to the
conclusion that there was
conversion and agreed with their
Lordships in the YEBOAH VS.
KWAKYE case supra.
On the assessment of damages I
must first re-state the
principles upon which an Appeal
Court will interfere with an
award of damages by a trial
court. In Z1K'S PRESS LTD. VRS.
ALVAH IKOKU 13 W.A.C.A. 188
their Honours of the West
African Court of Appeal
succinctly set out the
principles in the following
manner
“These principles are clearly
set out in the leading case of
Owen vrs. Sykes (6), where the
Court of Appeal followed the
reasoning and decision in the
earlier case of Flint vrs.
Lovell (7). In the judgment of
Slesser, L.J., in Owen vrs.
Sykes (6), the following passage
occurs:—
“In the case of trials by a
Judge alone this Court has
power, as the hearing is by way
of re-hearing, to consider the
matter and decide what damages
ought to be awarded. In the case
of an appeal from a Judge trying
a case without a jury I would
accept as a criterion what
Greer, L.J., states in Flint
vrs. Lovell (7), where he says:
'In order to justify reversing
the trial Judge on the question
of the amount of damages, it
will generally be necessary that
this Court should be convinced
(either) that the Judge acted
upon some wrong principle of
law, or that the amount awarded
was so extremely high or so very
small as to make it, in the
judgment of this Court an
entirely erroneous estimate of
the damage to which the
plaintiff is entitled’. I read
these words to mean that if the
amount given is an amount which
this Court itself might feel
disinclined to agree with as an
amount which they themselves
would assess, that circumstance
alone would not necessarily
justify this Court in making any
amendment of the Judge's award,
and this Court would normally
have to be satisfied that there
really was, again to quote the
words of Greer, L.J. ‘entirely
erroneous estimate of the damage
to which the plaintiff is
entitled.’ That is a question of
degree, but I wish to guard
against the supposition that
because this Court is hearing
such a case by way of
re-hearing, therefore it would
be ready to re-assess damages
according to what this Court, if
they had been trying the case,
might have given as damages, and
not what the Judge below gave.
It is incumbent. I think, on the
parties wishing to disturb the
damages awarded, to satisfy this
Court that the Judge had acted
upon an erroneous estimate —
meaning thereby something in
which the error had so tinged
the proceedings that it was a
proper case for this Court to
assess the damages. Otherwise it
seems to me a matter of
discretion for the learned Judge
as to his estimate of the
damages."
In reference to the authority
immediately cited above, it is
clear that an appellate Court
may reverse or vary the award of
damages on the grounds
(a) "that the Judge acted on
some wrong principles of law" or
(b) "that the amount awarded was
so extremely high or so very
small as to make it, in the
judgment of this (Court) an
entirely erroneous estimate of
the damage to which the
plaintiff is entitled."
I have re-stated these
principles in the very words of
FLINT VRS. LOVELL (1936) IKB 360
in order to emphasise the limits
of an appellate Court's power to
interfere in the exercise of the
discretion of the trial Court in
the award of damages.
In the instant appeal their
Lordships in the Court of Appeal
were right in any of the grounds
stated above in interfering with
the exercise of the discretion
by the High Court Judge in the
award of damages. Her Lordship
clearly erred even in the heads
of damages awarded and came to
conclusions which were not
warranted in law. Their
Lordships in the Court of Appeal
were thus entitled to make fresh
assessment of the damages to
which the Plaintiff was
entitled.
In the GENERAL AND FINANCE LTD.
case, supra DIPLOCK L.J., stated
that in conversion the judgment
is for pecuniary damages only.
In his Lordship’s view
"The judgment is for a single
sum to which the measure is
generally the value of the
chattel at the date of the
conversion together with any
consequential damage flowing
from the conversion and not too
remote to be recoverable at
law."
On the evidence their Lordships
in the Court of Appeal awarded
¢1 million as the value of the
gear box at the time of
conversion and ¢40 million as
consequential damages flowing
from the conversion.
Before us the Appellant has not
complained about the value of
the gear box as found by the
Court of Appeal and I see no
reason for disturbing that value
put on it. The Appellant's main
complaint however, is that their
Lordships arrived at the award
by a combination of conjecture
and guess work. I do not agree
with such a submission. In my
respectful opinion their
Lordships applied the right
formulae in the assessment of
the consequential loss. The
Appellant contends that it was
not open to the Court of Appeal
to include in the assessment a
period which extended to a date
after the commencement of the
action. Nor has Counsel made
any suggestion to the Court as
to the probable cost of the gear
box as at the time of the
conversion. Learned Counsel
complains however that the
figure of ¢1 million
representing the value of the
gear box as at the middle of
1987 was arbitrary. In my
respectful opinion Counsel was
wrong. Counsel in his
submission on this issue refers
to the very passage in her
Lordship’s opinion rightly,
cogent reasons for arriving at
that value. Said her Lordship
"The Respondent took various
steps to retrieve his gear box,
including his offer to purchase
the entire bus which was finally
disposed of in 1985. By this
date then there was no chance of
retrieving his gear box from the
Appellants. I will not limit the
period of assessment to the
date, when the bus was sold."
Her Lordship then took into
consideration the operation of
market forces and the
unavailability of spares at the
date of conversion. I think
that a judge or Court is
entitled to take judicial notice
of the economic forces and the
sharp falls and depreciations of
our country’s currency and
financial markets in making
awards commensurate with
relative values of goods and
chattels at the date of
assessment of values in respect
of the tort of detinue or
conversion or indeed, in any
circumstances where damages may
be awarded for any wrongful act
or conduct. In the opinion of
her Lordship
"the cost of replacement of the
chattel as about the middle of
1987 would afford a reasonable
compensation for the loss of the
gear box."
I am therefore in entire
agreement with their Lordships
assessment of the value of the
gear box at ¢1 million.
Judging by the evidence on
record that, the Appellants
played ‘cat and mouse’ with the
Respondent for two years while
openly plying the bus for the
carriage of their employees
before disposing of the buys to
third parties, I think two years
was a reasonable period for
which consequential loss may be
awarded. Learned Counsel is
correct when he submitted that a
Plaintiff must mitigate his
damage. But when in an action
for detinue or conversion the
tortfeasor refuses to return the
goods and on the evidence the
tortfeasor continues in wrongful
possession of the chattel and
applies it to his own profit.
In this appeal it is clear that
if the Appellant had hearkened
to the request of the Police to
submit the bus for inspection
the consequential loss would
have attracted minimal or
minimum damages—see YEBOAH VS.
KWAKYE, supra.
I have already alluded to the
principles under which an
appellate Court will interfere
in the award of the damages by a
trial or lower court. In this
appeal while I have found that
the consequal loss or whatever
it is called, so assessed by the
High Court was astronomical, I
think that the award of ¢40
million therefor by the Court of
Appeal was in my respectful
opinion “so extremely high….as
to make it….an entirely
erroneous estimate of the
damages to which the Plaintiff
is entitled.” In my respectful
opinion her Lordship in the
Court of Appeal clearly
identified the factors to be
taken into consideration in
calculating the estimated
consequential loss in terms of
cedis and pesewas. While,
therefore, I agree that the
period for the calculation of
the consequential loss should be
two years—24 months—I propose to
alter the estimate of the number
of days of use of the Bus from
25 days to 20 days in a month.
It seems that their Lordships
only excluded Sundays and did
not take into consideration
other exigencies, emergencies
and circumstances which could
prevent the Respondent from
plying his bus for hire.
Therefore in my respectful
opinion 5 working days in a
week, which corresponds with a
statutory working week, will be
a reasonable weekly number of
days to base any such
assessment. There was evidence
which her Lordship in the Court
of Appeal considered as to
probable earnings per diem from
the operation of the Respondents
bus. Her Lordship "struck a
balance and fix (ed) his daily
profits at ¢30,000.00….” Counsel
for the Appellant does not
appear to have any serious
objection to the amount so found
as per diem loss of earnings
save that in his submission
there should have been apportion
of the liability between the 1st
and 2nd Defendants as the former
was liable in detinue and the
latter (Appellant) was only
liable for the conversion. I
fail to appreciate the reasoning
in this proposition since the
two Courts below made positive
finding of fact that the stolen
gear box had to the knowledge of
the Appellant been fitted into
the Appellant's bus. It is now
cliché in legal language that
you take your victim as you find
him. In other words, where the
damage or loss is attributable
to the direct act of the
tortfeasor it would be no
defence to say that such damage
was caused only in part by the
tortfeasor if otherwise the
chattel remains unusable
thereafter.
In the present appeal the
formulation of the consequential
loss thus becomes simple. The
consequential loss is therefore
the number of days of operation
per month at the probable
earning per diem and, in the
present appeal multiplied by 24
months (two years) = 20 x
30,000.00 = 600,000 x 24 =
¢14.400.000.00. Taking into
consideration days "when the
vehicle might be at the workshop
undergoing repairs or the driver
was for some reason unavailable
and considering the element of
tax in the award, I would settle
the amount of consequential loss
at ¢9 million. I would thus
award a single sum of ¢10
million which includes the
values of the gear box and the
damages for the consequential
loss.
On the 9th January, 1992 the
Respondent, by motion sought to
amend his statement of claim,
and it was so granted. The
amended statement of claim filed
pursuant to the order of the
Court was in almost all respects
similar to the previous
amendments save that in the
instant pleading the Respondent
then Plaintiff added a claim for
interest thus
“......date of judgment plus
interest on the judgment debt at
the current bank rate from……”
It does not appear that either
the parties or the Learned High
Court Judge adverted to this
prayer. In fact no interest was
awarded in the High Court. But
the Respondent cross-appealed
and prayed for interest to be
awarded on the damages “up to
date of judgment or date of
payment”. Before the Court of
Appeal learned Counsel for the
Appellant submitted that the
Respondent could not be entitled
to interest on the award in his
favour and the Learned Judge was
right in denying the Respondent
interest on the award of
damages. Counsel for Appellant
therefore submitted that “in
cases of detinue the trial judge
cannot award interest”. The
submission was, of course,
rejected by their Lordships in
the Court of Appeal Mrs. Wood,
J.A. put it thus :—
"The Respondent did put in a
claim for interest, when we bear
in mind that the sole purpose of
awarding is to enable the Court
to put into his hands sufficient
money as would compensate him
for the loss he has suffered
then we at once see that in a
country like ours where the
inflationary rate is
astronomical, the only just and
equitable thing to do in
circumstances such as thus (sic)
is to allow interest on the
amount awarded — if this were
not done what we will have
placed in his hands would not
reflect what he had lost."
On the principle that an
appellate Court has all the
powers of the Court from which
the appeal emanates I agree with
her Lordship when for the
reasons given she exercised her
discretion in awarding the
interest in terms of the
statute.
As I have already pointed out,
Counsel for the Respondent
cross-appealed on the issue of
interest payable on the award of
damages and postulated that
interest should be payable
thereon “up to the date of
judgment or date of payment".
My researches from the selected
judgments of Courts and other
sources have revealed that there
are principally four instances
in which interest may be
awarded. Thus interest may be
awarded where:
(i) by the custom or trade
practice. Such interest is
usually awarded on money clause
upon proof of such custom or
trade practice: PAPPOE VS. BANK
OF BRITISH WEST AFRICA 1
W.A.C.A. 287 or
(ii) by agreement in
transactions between parties
where such interest may become
payable upon action brought
after default: SENEDZA VS.
DJOKOTO (1991) 2 G.L.R. 81 or
(iii) interest charges arising
out of Contracts—actually stated
or implied: KAAS FISHERIES LTD.
VS. BARCLAYS BANK LTD. (1989-90)
G.L.R. 1 : ROYAL DUTCH AIRLINES
(KLM) & ANOR. VS. FARMEX LTD.
(1989-90) 2 G.L.R. 623 here at
page 644 - 5 AIKINS, J.S.C.
expressed himself thus:
"Interest is normally awarded to
the Plaintiff where the
Defendant's breach of contract
has deprived him of the
opportunity to work with the
money to earn profit or income.
The power of the Courts to award
interest is derived from Section
98 of the Courts Act 1971 (Act
372 and the Courts (Award of
Interest) Instrument 1984 (L.I.
1295) and the rate to be awarded
is the Bank rate prevailing at
the time the order was made by
the Court."
Or (iv) By Statute. Interest to
be claimed under Statute may
arise under (a) the usury laws
(Money lenders Ordinance) or
under L.I. 1295 already referred
to above. In the case of
SENEDZA VS. DJOKOTO (1991) 2
G.L.R. 81 Bennin, J. (as he then
was) considered the application
of L.I. 1295 to an action for
the recovery of an interest free
in which the Defendant had
subsequently defaulted in
paying. At page 87 of the
report his Lordship put the
issue of the award of interest
in graphic form when after
dismissing the Defendant's
counterclaim with costs he
stated:
"But thereafter when the
Defendant became in breach of
the agreement to pay, it
entitled the Plaintiff to be
awarded interest without putting
in a claim for it? Yes, a Court
can award interest without any
claim being made if the
pleadings, more particularly
when power has been given by a
Statute...... The Defendant's
breach of the agreement to pay
as I said entitled the Plaintiff
to recover interest. Interest
is awardable by virtue of the
Courts (Award of Interest)
Instrument 1984 (L.I. 1295)."
I have observed that in the
FARMEX case, supra, Aikins,
J.S.C. awarded the interest as
first arising under contract and
then in any case under L.I.
1295. With the greatest respect
to his Lordship the rate of
interest awardable at the time
of the breach of contract had
nothing to do with the laws of
Ghana. In KAAS FISHERIES LTD.
VS. BARCLAYS BANK OF GHANA LTD.
(1989-90) 2 G.L.R. 1 Brobbey, J.
(as he then was) with respect
mixed and therefore missed the
issues raised by Order 42 rule
15 of L.N. 140A and L.I. 1295.
His Lordship put it thus:
"Where debt arises under an
agreement and action is taken to
recover the debt, the debt will
merge with the judgment and what
will hereafter become
recoverable will be the judgment
debt up to the date of final
payment is what is provided for
by law. Until February 1984 the
law was as contained in Order 42
rule 15 of L.N. 140A. That law
which was enacted in 1954 was
that interest exigible was four
percent...... On 10th February,
1984 (L.I. 1295) was
promulgated. L.I. 1295 provided
that the interest which the
Court may award shall be at the
prevailing Bank rate to be
calculated at simple interest.
Although L.I. 1295 did not
specifically refer to Order 42
rule 15 of L.N. 140A, both L.N.
140A (the latter having been
enacted in 1954 and L.I. 1295 in
1984) and to the extent that the
two statutes are inconsistent
with each other, L.I. 1295
should be deemed to have amended
L.N. 140A by implication. To my
mind, the prevailing law is as
contained in L.I. 1295 and
therefore the interest exigible
on the judgment debt up to the
date of final payment is the
prevailing Bank rate calculated
at simple interest. The argument
that interest exigible on the
judgment debt should be four
percent fails and is
consequently dismissed."
With very great respect to the
Learned Judge the passage quoted
from his opinion in the KAAS
FISHERIES LTD. case, supra, is
not only profound and attractive
but it also contains errors of
legal principles and procedure.
It will however suffice to point
that Order 42 rule 15 concerns
“every writ of execution”…..A
writ of execution is a direction
to the Sheriff by the
execution/creditor to compel a
Defendant against whom a
judgment decree or order has
been obtained from a Court of
competent jurisdiction
"compelling the Defendant to do
or to pay what has been
adjudged". On the other hand,
L.I. 1295 speaks of a situation
in which
“The Court makes an Order for
the payment of interest on any
sum due to the Plaintiff other
than any sum claimed by a
Plaintiff under Order 13 rule 3
of the High Court (Civil
Procedure) Rules 1954 (L.N.
140A)."
The difference in the two
situations are clear. L.N 140A
Order 42 rule 15 thereof deals
with interest exigible on the
successful party going into
execution while L.I. 1295 vests
the Judge with the discretion to
award interest on any sum
claimed or awarded up to date of
judgment. The concept of the
same rate of interest prevailing
after judgment and subsisting
until final payment is not
supported by authority. In the
ANNUAL PRACTICE 1956 at page 753
are two notes under the
subheadings "Rate of Interest”
and "On judgments in default of
Appearance”. It must be noted
that in that volume of the
Annual Practice referred to
Order 42 rule 15 of L.N. 140A
corresponds to Order 42 rule
16. For the sake of brevity I
will set them down.
"Rate of Interest — A contract
to pay the debt with interest at
e.g. £10 per cent, does not
entitle a Plaintiff to levy
under his execution more than
the statutory interest of £4 per
cent. The contract (or a
subsequent agreement) must state
specifically that any Judgment
obtained for recovery of the
debt shall carry interest at
(e.g.) £10 per cent, and the
higher rate of interest should
form part of the judgment; see
Re European Central Ry. (1877),
4. Ch. D. 33; Ex p. Fewinqs
(1883), 25 Ch. D. 338; Arbuthnot
Vrs. Bunsilall (1890), 62 L.T.
234; and see Economic Life
Assurance Society Vrs. Usborne,
[1902] A.C. 147” (emphasis mine)
The Court has no duty to make a
contract for the parties but
will enforce the terms of a
contract so made by the parties.
And then under
“On judgment in Default of
Appearance—Judgment in default
of appearance for a liquidated
claim may include interest (if
claimed), at the rate specified,
or if no rate is specified, at 5
per cent to date of judgment (O.
13, r. 3); subsequent to that
date the rate, as above stated,
is 4 per cent.”
I think the two statements from
the annual practice amply
illustrate that interest on debt
or damages awarded by a Court
must be exigible up to date of
judgment. Thereafter no matter
what the arrangement of the
parties the only interest
exigible will be what is
provided by the rules governing
execution. I think the drafters
L.I. 1295 were aware of the law
and procedure for enforcing
judgments for debts and damages.
The Learned Judge acknowledges
the exclusion of default
judgments under Order 13 rule 3
of L.N. 140A from the operation
of L.I. 1295 and concludes that
Order 42 rule 15 is “impliedly
repealed”. With great respect
to his Lordship I do not share
that view. As has been
illustrated above after judgment
whether by default or after
trial interest exigible on a
debt or damages can only be
stated at the rate stated in
Order 42 rule 15. In my respect
opinion there has been no
necessity for his Lordship to
distinguish the case before him
of the BINOO – OKAI case supra.
I think Mrs. Cecilia
Koranteng-Addow, J. was right
when she said she took “a
commonsense approach to resolve
the problem" of when to conclude
the award of interest. Her
Lordship stated at page 78 of
the report:
“The judgment for the principal
sum and interest up to the date
of judgment is more potent than
the mere right to take an action
for these sums. The judgment
gives the successful Plaintiff a
legal right, the enforcement of
which the law places at his
disposal the whole panoply of
the law enforcement machinery of
the State.”
Clearly interest on judgments to
be claimable until date of
payment is unwarranted in law.
A judgment should therefore
conclude the debt or damages
with the interest thereon or
calculated to the date of
judgment. Thereafter parties
must be free to pursue any
course of execution.
In the result I shall, subject
to altering the award of damages
of ¢41 million for the
conversion of the Respondent’s
gear box to ¢10 million with
interest thereon as contained in
the Order of the Court, dismiss
the appeal.
AMPIAH, J.S.C.:
I agree
ACQUAH, J.S.C.:
I agree
AKUFFO, J.S.C.:
I also agree.
COUNSEL |