Accra (Greater Accra), 22nd April ?99 -
An Accra High Court will on April 30, rule whether it should hear an application for an interim injunction filed by Accra Brewery Company (ABL) against Guinness Ghana Limited (GGL) on the sale of alcoholic and non-alcoholic beverages in the country.
The court fixed the date following a preliminary objection raised by Mr Sam Okudzeto, counsel for GGL that ABL has no legal right to take such an action and urged the court to dismiss it.
Mr Okudzeto contended that the agreement entered into by GGL with its retailers for the sale of its alcoholic and non-alcoholic beverages from now until December 31, 2000 is valid. Counsel said there is no law in Ghana that says that under a free market, nobody can enter into an agreement with any other person. "An agreement between two parties even with restrictions is lawful," Mr Okudzeto said. He cited legal authorities to buttress his argument and added that it was only the retailers, who entered into the agreement with Guinness who could take such action and not ABL. Replying, Mr William Edem Fugar, counsel for ABL, said the legal action taken was not only against restraint of trade but also an inducement and that the agreement offended public policy. He said ABL felt injured by the agreement so it had the right to take action.
"Public policy does not permit acts that prevent trade competition", he added. Counsel argued that the agreement entered into by the defendant with their retailers, who also sell ABL products, is a "ploy to prevent competition".
On March 31 this year, ABL caused a writ of summons and statement of claim to be issued against GGL. ABL sought a declaration that an agreement dubbed "Guinness means profit retailer scheme" initiated by the defendant with various joint retailers should be declared null and void and of no effect. Part of the agreement prevents the agents who stock Guinness from selling any other alcoholic beverage until 31st December 2000. ABL, therefore, prayed the court to restrain Guinness, its agents, privies and assigns from entering into such or any further agreements with the said retail outlets. Guinness, in a statement of opposition, said ABL's action has no legal basis and must be dismissed.
