High Court rules in favour of dealer in dispute with Total Energies

The Accra High Court has ruled in favour of Mr. Thomas Kofi Classpeter, operator of the Powerland Total Energies Service Station at Madina, in his long-standing dispute with Total Energies Marketing PLC.

Presided over by Justice Patrick Baayeh, the court ordered Total Energies to account for and pay Mr. Classpeter 50 percent of the rent collected from Cal Bank for an ATM installed on the service station property without his consent. The company has been given 60 days to settle all payments due.

The case arose from a Memorandum of Understanding (MoU) signed on January 21, 2014. While Total Energies insisted the MoU was binding for 15 years, Mr. Classpeter argued it was only a six-month transitional arrangement, meant to precede a formal contract which was never executed.

Evidence presented in court showed that Mr. Classpeter had already constructed the station before engaging Total Energies. He also accused the company of supply practices, such as depositing fuel without request, that left him with huge debts. After settling his obligations, he sought to operate independently, but Total Energies refused to release him.

In its ruling, the court held that the company’s contribution of pumps, machines, and branding did not make it a part-owner of the station. The installation of Cal Bank’s ATM without disclosing rental terms was deemed wrongful.

“The defendant is entitled to 50 percent of the rent charges,” Justice Baayeh stated, affirming Mr. Classpeter’s rights as the lawful operator of the station.

Although a claim for general damages was dismissed, the court awarded GH¢50,000 in costs to Mr. Classpeter.

The judgment not only vindicates his position but also highlights the importance of transparency in dealer–oil marketing company agreements, with implications for business practices across the industry.

By: Bawa Musah

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