What appears to be a”negligence” on the part of the Activa International Insurances Company, put it at risk of an imminent shutdown and possible arrest for many of its managers, if it doesn’t raise US$430,920 in keeping with the judgement of the Debt Court for Montserrado County.
Activa posted an indemnity bond in the amount of US$750,000, in favor of Western Cluster and Citadel Mining Services, a subcontracted Ghanaian company, to operate in its mining concession area in Bomi County against the Action of Debt by Attachment lawsuit.
Based on this, the defense lawyers filed a motion to vacate the attachment placed on the properties of Western Cluster and Citadel Mining Services, which request was granted by Judge James E. Jones.
But, according to the Sheriff’s return, Citadel Mining Services, that was found liable (guilty), head office in Monrovia and operation site in Bomi County had been closed, without knowing the whereabouts of the management to satisfy the July 14, 2025, judgment against it.
Western Cluster was absolved from any liability, since it had nothing to do with whosoever with the agreement between Citadel Mining and Horizon, but was added as a party defendant, only because the equipment operated on its mining concession premises, according to the court’s ruling.
In court’s July 14,2025 judgment, Judge James E. Jones said, “Activa international insurance company surety for the judgment debtor in these proceedings is liable to pay the US$430,920.”
Jones’ judgment resulted from an application filed by the plaintiff, Horizon Transport and Construction Company to hold the surety, Activa international insurance company for the judgment amount in keeping with the law.
lndemnity refers to protection against or compensation for a loss or liability. It’s essentially a contractual agreement where one party (the indemnitor) promises to compensate another party (the indemnitee) for specified losses or damages they may incur.
The debt came as a result of a Hitachi 850 equipment rental agreement between Citadel Mining Services and Horizon Transport and Construction Company owed by Hans Armstrong, a British investor (plaintiff).
In this case, according to a highly judicial source, Western Cluster and Citadel Mining Services paid to Activa international insurance company the amount of US$40,000 for the bond. But, during the trial,
Unfortunately, since the court’s judgment on July 14, 2025, holding Citadel Mining Services liable in the amount of US$430,920, the Sheriff’s return shows that shows that Citadel Mining’s head office in Monrovia and operation site in Bomi County had been closed, adding “without knowing the whereabouts of the management to satisfy the judgment against it.”
Western Cluster was absolved from any liability, since it had nothing to do with whosoever with the agreement between Citadel Mining and Horizon, but was added as a party defendant, only because the equipment operated on its mining concession premises, according to the court’s ruling.
“Thereby holding Citadel Mining Services liable to plaintiff in the amount of US$430,920, inclusive of interest prescribed by the law, “Judge Jones further ruled. The actual money sued for is US$378,000.
The court had already issued payment ordered mandating Citadel Mining Services pay, but the company’s management nowhere to be identified. It was at the results of the Sheriff’s return, that prompted the plaintiff to file with the court an application holding the surety, Activa international insurance company for the judgment amount in keeping with the law.
According to the lawsuit, Citadel Mining, a Ghanaian subcontracted company by Western Cluster, in July 2022, entered into an equipment lease agreement to rent Armstrong’s Hitachi 850 heavy machine to be used on Western Cluster’s concession site, in Bomi County.
But, the suit claims, since August of 2022 up to and including May 31, 2023, Citadel Mining took Armstrong’s equipment to the Western mining site and began using it there without making any payment, with each month US$84K amounting to the US$378K.
And the machine was still in Citadel Mining’s possession and being used on the Western Cluster’s concession area.
However, Western Cluster’s involvement with the suit is based on the doctrine of respondeat superior, where the principal is held liable for the indebtedness of the agent, now Citadel Mining, second defendant, the lawsuit argued.
‘The total indebtedness of defendants in the tune of US$378K, reflecting the eight and a half month, including the 6 percent interest, totaling US$430,920, they continue to maintain actual and physical and usage of the machine at the operational area in Bomi County. He did not know the exact location of the equipment,’ Armstrong’s suit claims.
