Liberia: Ghanaian Company, Subcontracted by Western Cluster, Found Guilty of Unpaid Debt

Citadel Mining Company, a Ghanaian mining company subcontracted by Western Cluster, has been found guilty and ordered to pay US$34,000, plus 6% interest and costs associated with the lawsuit.

The judgment was delivered on May 2, 2023, by Judge James Jones of the Debt Court for Montserrado County, Liberia.

The lawsuit was filed by Horizon Construction Company and its Chief Executive Officer (CEO) Hans Armstrong, a British national.

In the suit, Armstrong claimed that on July 1, 2022, he entered into a contract agreement with Citadel Mining Company to rent his Hitachi 850 earth moving equipment to be used at its Western Cluster iron ore concession site in Bomi County, Liberia.

However, the company has since refused and failed to pay him US$34,000 as a balance payment of US$84,000, according to the contract.

During the trial, Citadel Mining Company’s managing director, Nana Osei-Boadi admitted owing US$34,000, but argued that the equipment was not operational when the contract was signed.

Boadi said that there was an oral agreement with Armstrong that he would repair the equipment and deduct the cost of repair from Armstrong's rental fees.

However, Judge Jones ruled that Boadi’s assertion went against the parole evidence rule because nothing of this nature was mentioned in the written contract.

The judge also ruled that Boadi failed to repair the equipment as agreed and that Citadel Mining Company was therefore liable to pay Armstrong the full amount of US$34,000 plus interest and costs.

This is a significant victory for Armstrong, and sends a message to other companies that they will be held accountable for their debts.

It is also a reminder that it is important to have a written contract in place, as this will help protect you in the event of a dispute.