Rock-Hard Distributors Ltd v Kenny's Trucking & Equipment Services Ltd

• Jurisdiction: Caribbean States
• Court: Eastern Caribbean Supreme Court
• Judge: Actie J
• Judgment Date: 27 September 2024
• Judgment citation (vLex): [2024] ECSC J0927-3
• Docket Number: CLAIM NO. GDAHCV2022/0107

Between:

Rock-Hard Distributors Ltd

Claimant/Counterdefendant

and

Kenny's Trucking & Equipment Services Ltd.

Defendant/Counterclaimant

Before:

The Hon. Mde. Justice Agnes Actie High Court Judge

CLAIM NO. GDAHCV2022/0107

IN THE SUPREME COURT OF GRENADA

AND THE WEST INDIES ASSOCIATED STATES

HIGH COURT OF JUSTICE

(CIVIL)

Appearances:

Ms. Carah St. Paul and Ms. Chennelle Hyacinth for the Claimant

Mr. Anslem Clouden and Ms. Gerissa Rodney for the Defendant

ORAL DECISION

Actie J

1 On 15 ^th March 2022, Rock-Hard Distributors Ltd (hereafter referred to as “RHDL”) filed a claim for the sum USD$1,861,705.00 being the unpaid value of cement supplied to Kenny's Trucking & Equipment Services Ltd (hereafter referred to as “Kenny's trucking”) between 2019 – 2020. Kenny's trucking in its pleadings admitted part of the claim and the court by Order dated 13 ^th July 2023 entered summary judgment in favour of RHDL for the sum of USD$408,476.37.

2 Kenny's trucking counterclaims against RHDL for reimbursement of the sum of US$584,532.09. It is the evidence of Mr. Kenny Forrester, Managing Director of Kenny's trucking, that he had dealings with Mr. Dev Maharaj whom he alleged was an agent of RHDL. The parties entered an oral contract for the purchase of cement on credit terms. Mr Forrester said he first met Mr. Maharaj at a meeting at the premises of Kenny's trucking in or about July 2019 where it was agreed that RHDL would bear responsibility for the costs of spoiled cement, all port dues, bagging of cement and the rental cost for warehouses in Dusty Highway, St. George and Westerhall, St. David. It is also Kenny's trucking's evidence that the parties agreed for a shipment of cement to Carriacou be sold to a company called Beijing Construction Engineer Group Co. Ltd on behalf of RHDL at cost price and to be refunded by RHDL. Mr. Forrester states that his company acted and relied on the assurance given by RHDL in the oral contract made between the parties.

3 It is the evidence of Mr Forrester that most of the cement was for Kenny's trucking's use for construction purposes and that the company also sold to other customers on a very small scale. Mr Forrester said that he is assisted by his wife in the business, but he is the lead person making all the financial decisions relative to the said company.

4 RHDL in response, denies making any agreement to cover costs incurred by Kenny's trucking. RHDL states that any costs incidental to the purchase of its product are borne by the purchasers. RHDL denies agreeing to any terms with Kenny's trucking other than for the shipment of cement at the cost reflected in the invoices issued to the company. RHDL states that the parties did not have any other relationship other than that of buyer and seller, and that at no point in time was Kenny's trucking appointed as its agent.

5 Mr. Ryan Ramhit, managing director and majority shareholder of RHDL, both in his witness statement and at trial stated that Mr. Dev. Maharaj approached RHDL with a proposal to sell Rock Hard cement in Grenada and to act as a salesman on RHDL's behalf. Mr. Dev Maharaj issued the invoices to the purchasers and payments were made to RHDL. He states that the purchasers collected their shipments upon arrival at the respective ports and the purchasers were always responsible for their costs at the port and storage. He states that Kenny's trucking was responsible for the Rock-Hard cement upon arrival in Grenada.

6 Mr. Ramhit states that Mr. Dev Maharaj was responsible for following up with the payment of the invoices issued on RHDL's behalf. Mr Ramhit contends that at no point did RHDL receive any complaints in writing or otherwise from Kenny's trucking with respect to the said invoices.

Legal Analysis

Whether the doctrine of promissory estoppel applies

7 Mr Anselm Clouden, counsel for Kenny's trucking, propounds the doctrine of promissory estoppel. The principle of promissory estoppel is that, when one party has, by his words or conduct, made to the other a clear and unequivocal...