The Debt Court for Montserrado County issued an order to freeze the accounts of Citadel Mining Services and Construction, a Ghanaian company subcontracted by Western Cluster, over an outstanding US$40,000 judgment debt.
The ruling by Judge James E. Jones came after a Supreme Court petition by Citadel Mining was declined. The order resulted in the freezing of Citadel Mining's accounts in ten commercial banks in Liberia, including Ecobank, GT Bank, and Afriland First Bank, among others.
The proceeding was initiated by Hans Armstrong, a British national, aiming to recover the remaining US$34,000 from the initial judgment sum of US$50,000 paid by Citadel Mining in 2022.
Western Cluster is among the commercial banks garnished, making the mining company a third party to be included in surrendering money assets to settle Citadel Mining's outstanding judgment debt.
The garnishee proceeding is intended by Armstrong, to recover the balance of US$34,000, which is outstanding from the actual judgment sum, from which Citadel Mining paid US$50,000 in 2022.
Judge Jones has instructed the banks and Western Cluster to provide formal returns regarding any funds, properties, or equipment held on behalf of Citadel Mining. The judge cautioned against disposing of any assets and outlined a payment deadline for the garnishee to settle the outstanding debt.
Judge Jones stated, "The garnishee is to submit to an examination concerning the possession of money, properties, equipment or any portion thereof belonging to the above name Respondent."
The judge added, "The respondent is warned not to dispose of such properties, money, equipment or any portion or kind thereof until directed to do so by this Honorable Court and further warn them that if the Respondents/Garnishees should dispose of said money, properties, equipment or machinery or failed to sit to said examination, each of them will be individually held liable for the judgment claimed."
The lawsuit stemmed from a leasing agreement between Citadel Mining and Armstrong in July 2022 for a Hitachi 850 excavator machine for two (2) calendar months for a total rental fee of US$84,000, with Citadel Mining allegedly failing to pay the balance of US$34,000 by the agreed deadline.
The monthly operational hour of the leased equipment under the agreement was two hundred forty (240) hours and the amount to be paid per operational hour was US$175, according to the Action of Debt lawsuit filed before the court.
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According to the agreement, Citadel Mining made a down payment of US$50,000, took possession of the equipment, and deployed the same at its mining operation site in Bomi County.
The balance amount of US$34,000, under the agreement, was due to be paid on August 15, 2022, the court record alleges.
According to the document, Citadel Mining having failed to comply with Armstrong's demand for the balance payment under the agreement, filed an action of debt before the Debt Court for praying the court to hold the mining company liable for the amount of US$34,000 plus six percent (6%) statutory interest and two percent (2%) successful attorney fees, totaling US$40,000.
The suit contended further that the mining company intended to abuse and frustrate justice by denying him his legitimate rental income.
Citadel Mining disputes the debt, claiming the equipment was not operational, and thus, Armstrong is not entitled to the amount in question.
In counter-argument, Citadel Mining asserted that Armstrong was aware that the Hitachi 850 excavator machine, subject to the equipment lease agreement, was not operable and functional; the parties mutually agreed in good faith.
Citadel Mining further argued that the amount of debt is in dispute because the equipment which was leased to it by Armstrong' is not functioning as expected and therefore, Armstrong is not entitled to receipt of the US$34,000 sued for.
The judge, however, advised the garnishee to pay the court any money currently in the possession of Western Cluster for the benefit of Citadel Mining on or before the 29th of June 2024.
