CIVIL PROCEDURE

What is the structure of Ghanaian Courts?

The Supreme Court
Court of Appeal
High Court
Regional Tribunal
Circuit Court & Circuit Tribunal
Community Tribunal
Houses of Chiefs and Traditional Councils

What processes are involved in instituting Civil Actions?

What are the processes involved in enforcing an agreement?

Does Ghana uphold the Rule of Law and Independence of Judiciary?

Would the courts of Ghana uphold the contractual choice of law (e.g. either
New York or English)?

Will the courts of Ghana uphold an election of jurisdiction provision?

Will the courts of Ghana uphold the judgment of a foreign court?

Will the courts of Ghana uphold a foreign arbitration award?

In relation to enforcing rights under any agreement, is it relevant that the enforcing party is domiciled in Ghana?

Will a foreign party be deemed to be domiciled, resident or carrying on business in Ghana by reason only of execution of agreement with Ghanaian entities or performance or enforcement thereof?

Residence
Domicile
Carrying on Business

Are there any "public policy" considerations that a foreign party should be aware of that Ghanaian courts might take into account?

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What is the structure of Ghanaian Courts?

The legal framework of the courts in Ghana can be found in the 1992 Constitution and
the Courts Act, 1993 (Act 459) as follows:

The Supreme Court

The Supreme Court is the highest court in Ghana with both original and appellate jurisdictions. The Supreme Court has original jurisdiction in all matters relating to the enforcement or interpretation of the Constitution and questions of judicial review, and supervisory jurisdiction over all courts and adjudicating authorities.

Appeals lie to the Supreme Court from the Court of Appeal in any matter which has been initially determined by a High Court or Regional Tribunal in the exercise of their original jurisdiction. Appeals also lie from the Court of Appeal to the Supreme Court and from any court lower than the High Court and Regional Tribunal, where the Court of Appeal is satisfied that the case involves a substantial question of law or is in the public interest. The Supreme Court also has appellate jurisdiction to the exclusion of the Court of Appeal, in treason cases and chieftaincy matters from the National House of Chiefs.

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Court of Appeal

The Court of Appeal is an appellate court only and hears appeals, in both civil and criminal matters, from decisions of the High Court, Regional Tribunal and the Circuit Court.

High Court

The High Court has original jurisdiction in both civil and criminal matters. The High Court also has jurisdiction to enforce the fundamental human rights and freedoms guaranteed by the Constitution. The High Court has appellate jurisdiction from decisions of a Community Tribunal in civil matters as well as supervisory jurisdiction over all lower courts and any lower adjudicating authority and may in the exercise of that supervisory jurisdiction, issue orders and directions including orders in the nature of habeas corpus, certiorari, mandamus, prohibition and quo warranto for the purpose of enforcing or securing the enforcement of its supervisory powers.

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Regional Tribunal

The Regional Tribunal has concurrent and original jurisdiction with the High Court in all criminal matters. Particularly, it has jurisdiction to handle offences such as Causing loss, damage or injury to state property, illegal importation of explosives, and using public office for profit. It also has jurisdiction in respect of matters arising out of the Customs, Excise and Preventive Services Law, 1993 (PNDCL 330), Internal Revenue Act the Narcotic Drugs (Control, Enforcement and Sanctions) Law (PNDCL 236), and any other offence involving serious economic fraud, loss of state funds or property. A Regional Tribunal has appellate jurisdiction to hear appeals from Circuit or Community Tribunals in criminal trials.

Circuit Court & Circuit Tribunal

The Circuit Court has original jurisdiction in most civil matters but subject to the pecuniary limits specified in the Courts Act. Appeals from the Circuit Court go to the Court of Appeal.

The Circuit Tribunal has no jurisdiction in civil matters. It has original jurisdiction in all criminal matters arising within its specified area of jurisdiction except that it does not have jurisdiction to try the offence of treason or murder, a first-degree felony or an offence punishable by death or by life imprisonment. Appeals from the Circuit Tribunal
go to the Regional Tribunal.

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Community Tribunal

The Community Tribunal has civil and criminal jurisdiction in specified cases. Appeals
from a Community Tribunal in a civil matter go to the High Court while appeals in criminal matters go to the Regional Tribunal.

Houses of Chiefs and Traditional Councils

The Constitution provides that matters affecting Chieftaincy are to be determined by the National House of Chiefs, the Regional House of Chiefs and the Traditional Councils. These institutions are to settle such disputes in accordance with the appropriate customary law and usage.

The National House of Chiefs is made up of five paramount chiefs from each region of the country. The function of the National House of Chiefs is to advise any person or authority on matters affecting Chieftaincy, codify customary law and undertake an evaluation of traditional customs aimed at eliminating outmoded customs. A Judicial Committee performs the judicial functions of the National House of Chiefs. It has Original jurisdiction in any case affecting Chieftaincy, which lies within the competence of two or more Regional House of Chiefs and in any case which is not properly within the jurisdiction of a Regional House of Chiefs, or which cannot otherwise be dealt with by a Regional House of Chiefs.

The National House of Chiefs has appellate jurisdiction in any cause or matter affecting chieftaincy which has been determined by the Regional House of Chiefs. Appeals lie as of right to the Supreme Court in cases decided by the National House of Chiefs in its original jurisdiction and by leave in cases decided in its appellate jurisdiction.

There is a Regional House of Chiefs in each of the ten regions of the country. The Regional Houses of Chiefs advise persons and authorities on chieftaincy matters, make recommendations for the early resolution of chieftaincy disputes and undertake the compilation of the customary laws and lines of succession applicable to each stool or skin in the region. The Judicial Committee of a Regional House of Chiefs has original jurisdiction in all matters relating to a paramount stool or skin or the occupant of a paramount stool or skin, including a Queenmother to a paramount stool or skin. It also has jurisdiction to determine appeals from the traditional councils in the region in respect of the nomination, election, selection, installing or deposition of a person as a chief.

Traditional Councils have jurisdiction to hear and determine chieftaincy matters within their areas not being a matter in which the Asantehene or a paramount chief is a party.

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What processes are involved in instituting Civil Actions?

The procedure for civil litigation in Ghana is governed by the High Court (Civil Procedure) Rules, 1954, (L.N. 140A).

The process of taking legal action in a civil matter commences with the issue of a Writ
of Summons, Petition, Originating Summons or Originating Notice of Motion. A plaintiff
who files a Writ of Summons is required to also file a Statement of Claim, unless the Writ is 'Specially Endorsed'. The writ must contain an endorsement stating the nature of the claim or relief or remedy sought in the action. As a general rule, a Writ of Summons must be served personally on the defendant(s). Exceptions to this rule include cases where
the defendant is an infant or a lunatic or is detained, cases where the defendant is
a company/corporation, partnership firm or government department, maritime actions, actions for the recovery of land where no person appears to be in possession, and
where the action is against a Stool or Skin (traditional titles of chiefs) or a head of
family (this has a special meaning in Ghanaian law).

Where personal service of a Writ cannot be effected after three or more attempts, the court may make an order for substituted service by serving the defendant through a registered letter, posting the writ on a notice board at the court premises or at some other public place or at the usual or last known business or residential address, or by advertisement in the Gazette or in a national newspaper.

A defendant who has been duly served with a Writ of Summons and Statement of Claim is required to enter an appearance within 8 days of service by filing a Notice of Appearance. After this period, the defendant has 14 days within which to file his defence and/or counterclaim. If the plaintiff decides to reply to the defence of the defendant, he must file a reply and/or defence to the counterclaim within 7 days. Where pleadings have been closed, the plaintiff is required, within 7 days, to take out Summons for Directions returnable in not less than 7 days. Hearing commences after Summons for Directions.

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What are the processes involved in enforcing an agreement?

Under Ghana law, one may enforce an agreement or part thereof by the institution of legal action in the courts in accordance with the processes described above. The processes involved in enforcing a judgment obtained in such proceedings would depend on the remedy sought and granted in the proceedings, dictated by the contractual obligation which the aggrieved party seeks to enforce.

If the obligation is a debt, the party concerned would commence proceedings and having obtained judgement in his favour, would be entitled to proceed to enforce the judgement by the attachment and sale of the judgement debtor's property or by the imprisonment
of the debtor, or by a writ of sequestration where the judgement requires payment of
the money into court. Where the judgement is for the recovery or for the delivery of
the possession of land, it may be enforced by a writ of possession. Judgments for the recovery or delivery of any property other than land or money, may be enforced by a
writ of delivery of the property, by writ of attachment or by writ of sequestration.

An aggrieved party under an agreement may also seek either to compel the other party to do perform some act or do some thing that the latter is contractually obliged to perform or do or to restrain that other from doing some act which the contract or agreement enjoins them not to do. In the first case the order sought would be an order of specific performance and in the second, the aggrieved party would seek an injunction.

Specific performance is a decree of a court directed at a particular person or persons,
to compel the discharge of an obligation lawfully undertaken. Before an order of specific performance will be granted, there must be a binding contract and the obligation must
be lawful. As a general rule, an order of specific performance will not be made to enforce part of an agreement. The only circumstance in which the court may grant specific performance of a part of a contract is where the part to be specifically performed is separate, distinct, and independent of the unenforceable part. An order will be granted where a contract is partly performed by the plaintiff although the contract was not in writing where the law so requires.

If any person against whom an order for specific performance or an injunctive order restraining the doing of a particular act is made refuses to comply with the order he is guilty of contempt of court and the person in whose favour the order was made may apply to the court for a Committal Order that holds the guilty party in contempt of court. The punishment usually takes the form of commitment to prison for disobeying the order and remaining so incarcerated, until the party is prepared to purge his contempt by agreeing to do what he has been ordered to do and offering a suitable apology.

Agreements may also be enforced through arbitral proceedings where there is an arbitration agreement between the parties. The Arbitration Act, 1961 (Act 38) provides that unless otherwise indicated in an arbitration agreement an arbitral award shall be final and binding on the parties and the persons claiming through them. The Act 38 further provides that an award on an arbitration agreement may, by leave of the Court, be enforced in the same manner as a judgment or order to the same effect and where leave is given, judgment may be entered in terms of the award.

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Does Ghana uphold the Rule of Law and Independence of Judiciary?

Ghana has a constitutional and democratic system of governance within the framework
of a Constitution. The present Constitution (promulgated in 1992) reflects the concept of Separation of Powers and sets out the respective powers and functions of the Executive, the Legislature and the Judiciary. The Constitution guarantees fundamental freedoms and fundamental human rights such as the right to a fair trial, protection of privacy of property and others.

The principle of rule of law, one of the pillars of a constitutional government is declared and affirmed in the preamble of Ghana's Constitution. The compliance with rule of law in practice has improved since the country returned to democratic governance in 1992.

The Constitution guarantees the independence of the Judiciary under Article 127, which provides inter alia that "In the exercise of the judicial power of Ghana, the Judiciary, in both its judicial and administrative functions, including financial administrations, is subject only to this Constitution and shall not be subject to the control or direction of any person or authority." There is every indication that the judiciary is gradually beginning to exercise its independence.

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Would the courts of Ghana uphold the contractual choice of law (e.g. either New York or English)?

The Courts Act, 1993 (Act 459) recognises the choice of law made by the parties to
any transaction. However, under the Evidence Decree, 1975 (NRCD 323), foreign law is presumed to be the same as Ghana law, and the burden of rebutting that presumption lies on the party alleging the difference.

Will the courts of Ghana uphold an election of jurisdiction provision?

The courts of Ghana are not bound to uphold an election of jurisdiction by the parties. Jurisdiction is determined by an application of doctrine of forum convenient. However where the parties have chosen a jurisdiction that jurisdiction is prima facie the most appropriate from and will be upheld unless it can be shown that the choice is not reasonable which would seem to be the equivalent of the common law test of
'bona fide and legal'.

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Will the courts of Ghana uphold the judgment of a foreign court?

Under the Courts Act and the Foreign Judgments and Maintenance Orders (Reciprocal Enforcement) Instrument, 1993 (LI 1575), judgments of the following courts, and courts to which appeals from these courts lie, are enforceable in Ghana, by registration of the judgment in Ghana:

• Supreme Federal Court, Federal Court of Appeal and State High
Court of Brazil

• Cours de Cassation and Cours d'Appel of France

• Supreme Court of Israel; Corte d'Appello and Corte de Cessazione
of Italy

• Supreme Court of Japan

• Court of Appeal and High Court of Lebanon

• Cours Supreme and Cours d'Appel of Senegal

• Tribunal Supremo, Audiencia Territorial, Juez de Primera and
Instencia of Spain

• Court of Cassation and Court of Appeal of the United Arab Republic

• High Courts of England and Northern Ireland and the Court of
Session of Scotland.

Any judgment obtained in proceedings in any other jurisdiction, may be enforced by the Courts of the Republic of Ghana by the institution of fresh proceedings in the High Court, relying on the foreign judgment obtained as evidence.

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Will the courts of Ghana uphold a foreign arbitration award?

Foreign arbitration awards are enforceable under the Arbitration Act, 1961 (Act 38). Although Ghana is a party to the 1958 New York UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards and although the Convention has been enacted by Act 38 into Ghana law, its application to foreign awards is restricted to specified countries. The Arbitration Act and the Arbitration (Foreign Awards) Instrument, 1963
(LI 261) provide that foreign awards from the following states are enforceable in Ghana either by leave of the High Court in the same manner as a judgment or order to the same effect or by action in the same court:

Austria, Bulgaria, Byelorus, Cambodia, Central Africa Republic, Ceylon, Czech Republic, Slovakia, Ecuador, Germany, Finland, France, Greece, Hungary, India, Israel, Japan, Madagascar, Morocco, Norway, Poland, Romania, Syria, Thailand, Ukraine, Russia and the United Arab Republic.

A foreign award from any of the specified states shall be treated as binding for all purposes on the persons as between whom it was made and will not have to be proved in an action for its enforcement. It may also be relied on by either party by way of defence, set-off or otherwise in any legal proceedings.

Foreign awards from states other than those specified in the Arbitration Instrument may be enforced, not under the provisions of the Arbitration Act but under the rules of private international law (which are incorporated into the law of Ghana by virtue of section 54 of the Courts Act) by way of a fresh action at which the award will have to be proved. The basic elements for the successful enforcement of such an award are that: (a) the parties submitted to the arbitration; (b) the arbitration was conducted in accordance with the submission and (c) that the award was both final and valid by the law of the country in which it was made.

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In relation to enforcing rights under any agreement, is it relevant that the enforcing party is domiciled in Ghana?

No, except to the extent that domicile of the parties is taken into consideration in deciding whether a choice of jurisdiction made by the parties is 'reasonable'.


Will a foreign party be deemed to be domiciled, resident or carrying on business in Ghana by reason only of execution of agreement with Ghanaian entities or performance or enforcement thereof?

Residence

Kindly refer to the Residency Rules discussed above. Generally a company or body of persons is resident where the "control and management" of its business is exercised. Thus merely executing, performing or enforcing an agreement with Ghanaian entities will not make the foreign party resident in Ghana.

Domicile

A company is domiciled where it is incorporated, and a foreign party cannot therefore be deemed to be domiciled in Ghana.

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Carrying on Business

A foreign party will also not be deemed to be carrying on business in Ghana simply because it executes an agreement with a Ghanaian entity or enforces the agreement. There is no direct Ghanaian authority on whether performing an agreement with a Ghanaian entity constitutes "carrying on a business in Ghana". However, the foreign
party will be deemed to be carrying on business in Ghana where any part of its
obligations under any agreement is to be performed in Ghana either by itself or on
its behalf.

This opinion is based on a number of considerations. Firstly, the word "business", defined in the Internal Revenue Act to include "any trade, profession or vocation", and described by Lindley LJ in Rolls v. Miller [1881-5] All ER 915 at 920, to embrace "almost anything which is an occupation, as distinguished from a pleasure - anything which is an occupation or a duty which requires attention is a business", is wide enough to cover any activity performed in Ghana by a foreign party.

Secondly, the foreign party need not establish a place of business in Ghana for it to be deemed to be carrying on a business in Ghana. For instance, proviso (a) of section 302 of the Companies Code provides that a corporate body shall not be deemed to have an established place of business in Ghana merely because it carries on business dealings in Ghana. This suggests that "carrying on business in Ghana" may be held to exist as a fact although the affected person may not have established any office or other such fixed place of business in Ghana.

On the basis of the above considerations, it is our opinion that where the performance of a foreign party's obligations under an agreement involves its performance of any business activity within Ghana, either by itself or by some other person on its behalf, that party will be held to be carrying on a business in Ghana.

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Are there any "public policy" considerations that a foreign party should be aware of that Ghanaian courts might take into account?

The basic principle of public policy applied in Ghana is that the courts will not lend their aid to a person whose cause of action is based on an immoral or illegal act. The courts have refused to enforce illegal transactions, contracts that infringe statutory provisions, and contracts based on unlawful considerations such as a contract for a person acting in an official capacity procuring an advantage for another person for a private reward.


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