Court of Appeal Dismisses Castle Oil’s Bid to Halt Eviction over Eight-Year Unpaid Rent

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By Kemeseng Sanneh (Kexx)

The Court of Appeal has dismissed an application filed by Castle Oil Limited, operators of Castle Patrol Station, seeking a stay of execution of a High Court judgment that ordered their eviction and the payment of rent arrears and mesne profits to Alfusainey Dukureh, the property owner. The unanimous decision, delivered by Justices Sainabou Wadda-Cisse, Haddy Cecilia Roche, and Kumba Sillah-Camara, upheld the High Court’s earlier ruling and found that Castle Oil failed to demonstrate the “special circumstances” required to warrant a stay of execution, especially in light of their failure to pay rent for eight years.

Mesne profits refer to the compensation a person must pay for wrongfully occupying someone else’s land or property. This usually applies in legal disputes where someone stays on land after their right to occupy it has ended, such as after a lease or tenancy expires or is terminated.

The rightful owner or landlord seeks damages for the loss of income they could have earned during the period of unlawful occupation.

The legal battle stems from a High Court judgment delivered on July 12, 2024, by Justice Zainab Jawara-Alami, which granted possession of a leasehold property in Latrikunda Sabiji to Alfusainey Dukureh and ordered Castle Oil Limited to vacate the premises while paying mesne profits equivalent to USD 12,000 per annum from April 30, 2016, until possession is delivered, along with 4% interest. The dispute traces back to a tenancy agreement entered into in May 2001 between Castle Oil and Alfusainey Dukureh and his father, Alhaji Musa Dukureh. The original 15-year lease expired in May 2016, but a new agreement had been executed in January 2016. However, in April of the same year, the Respondent, through his solicitor, informed Castle Oil of his decision not to renew the lease and demanded they vacate the property by the end of that month. Castle Oil argued that the lease had already been renewed, setting the stage for the court battle.

Following Castle Oil’s refusal to vacate, Dukureh sued, seeking possession and damages. After losing at the High Court, Castle Oil filed an appeal and simultaneously applied for a stay of execution, arguing that they had constructed a fuel station on the site, including underground tanks and pumps, and that vacating would cause irreparable harm and render their appeal meaningless. They also expressed willingness to pay the rent arrears amounting to USD 12,000 per annum, admitting that they had remained on the property without paying rent since 2016.

In opposition, Dukureh’s counsel contended that the appeal lacked merit and raised no substantial legal question. They emphasized that Castle Oil had failed to pay rent for eight years and presented no convincing evidence that eviction would render their appeal nugatory. The Respondent also demonstrated financial capability to repay the judgment sum if Castle Oil eventually succeeded in their appeal, including by presenting unchallenged valuation reports of multiple commercial properties he owned.

In delivering the lead ruling, Justice Sainabou Wadda-Cisse reiterated that a stay of execution is a discretionary remedy that must be supported by convincing evidence of special circumstances. She emphasized that mere assertions of hardship or economic loss do not suffice. The court found Castle Oil’s claim that the appeal would be rendered nugatory to be speculative and unsubstantiated. Moreover, the judges noted that the tenancy agreements clearly stated that any buildings erected on the land would remain the property of the landlords upon termination of the lease, and the tenant would not be entitled to compensation.

The Court further invoked equitable principles, noting that Castle Oil had come to court with “unclean hands” by occupying the property rent-free for eight years. It held that granting the application would cause more injustice to the property owner than to the company, especially given their clear breach of tenancy obligations. The court concluded that Castle Oil’s continued occupation was unjust and that their application lacked merit. The application was dismissed with a cost of D25,000 awarded against Castle Oil Limited.