The International Chamber of Commerce (ICC) has rejected an international arbitration case filed by Micheletti Company Limited against the government of Ghana in May 2023. The case was related to alleged damages for breach of contract in the rehabilitation of the Accra Sports Stadium.
The ICC Tribunal, chaired by President Sadaff Habib and including members Shadrack Arhin and Justin Amenuvor, agreed with the Attorney-General of Ghana’s argument that the arbitration proceedings were barred by the statute of limitations. The Tribunal concurred that the action was initiated beyond the time limit specified by Ghana’s Limitation Act.
Background
In April 2006, the Government of Ghana agreed with Waterville Holdings (BVI) Limited to fix up several sports stadiums for the 2008 African Nations Cup. These stadiums included the Accra Sports Stadium, El-Wak Stadium in Accra, and Baba Yara Sports Stadium in Kumasi. Micheletti worked on the Accra Sports Stadium, and Consar Limited worked on the Baba Yara Sports Stadium.
On August 1, 2006, the government ended the agreement because it did not have approval from the Cabinet. They then talked with Micheletti and Consar about continuing the work. The government inspected the completed work and paid for it.
In 2023, Micheletti started arbitration because they claimed the government had not paid them for their work. Micheletti wanted $400,000 in special damages, interest starting from February 2009 at the Bank of Ghana’s rate plus three per cent, administrative fees, and arbitration costs.
The Attorney-General’s office said Micheletti didn’t follow the contract’s dispute resolution process, which required them to use a board to solve conflicts. Also, Ghana said that according to its law, the claim was made too late, more than 14 years after the problem started.
Operative part
The Tribunal agreed to address the preliminary objection first. It found that it had jurisdiction to hear the matter since Micheletti had notified the government of its intention to refer the dispute to a DAB, but the government ignored this notification.
However, the Tribunal concurred with the government that the action was statute-barred under Ghanaian law, having been filed beyond the six-year limit set by Ghana’s Limitation Act, 1972 – NRCD 54.
As a result, the Tribunal dismissed Micheletti’s claims entirely. The Tribunal is now considering submissions on the costs to be awarded to the government and will soon decide on the quantum of costs.
