MONDINVEST LIMITED v. DREDGING ENVIRONMENTAL AND MARINE NV
On Monday, the 25th day of June, 2018
CA/L/531/2016Before Their Lordships
JOSEPH SHAGBAOR IKYEGH Justice of The Court of Appeal of Nigeria
YARGATA BYENCHIT NIMPAR Justice of The Court of Appeal of Nigeria
Between
Before Their Lordships
JOSEPH SHAGBAOR IKYEGH Justice of The Court of Appeal of Nigeria
YARGATA BYENCHIT NIMPAR Justice of The Court of Appeal of Nigeria
Between
MONDINVEST LIMITED Appellant(s)
AND
DREGING ENVIRONMENTAL AND MARINE NV (OWNERS OF THE MV “BREUGHEL”, SISTER VESSEL TO THE MV “Congo River”) Respondent(s)
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YARGATA BYENCHIT NIMPAR, J.C.A. (Delivering the Leading Judgment): This appeal is predicated on a judgment of the Federal High Court delivered on the 16th day of February, 2016 by HON. JUSTICE BUBA in suit No: FHC/L/CS/1611/2015 wherein the Court limited the liability of the Respondent. Dissatisfied with the decision of the Court, the Appellant filed an amended Notice of Appeal on the 15th June, 2016 setting out 5 grounds of appeal.
By the nature of the action, the vessel was arrested and detained until a bank guarantee in the sum of N3.7 billion was posted for her release while the matter was set down for determining the liability of the vessel on the merit in SUIT NO: FHC/L/CS/1329/2015. The Respondents immediately by an originating summons commenced Suit No. FHC/L/CS/1611/2015 seeking to limit its liability as owners of the offending vessels under Section 351 of the Nigerian Merchant Shipping Act 2007. The originating summons was opposed and upon determination, the Court below granted the relief sought by the Respondents and limited the liability of the Respondent and ordered the creation of a limitation fund in favour of the Respondent for alleged damage caused the Appellants property and parties unknown to the Court for the project and capped the amount to $5,251,926.23 (Five Million Two Hundred and Fifty one Thousand, Nine Hundred and Twenty six Dollars and Twenty Three cents) or its naira equivalent. The Appellant felt aggrieved thus this appeal.
The Appellants brief settled by Anthony Nkadi dated and filed on the 23rd May, 2017 set out 5 issues for determination as follows:
i. Whether the learned Judge erred in law by ordering the limitation of liability for the Respondent who did not provide any evidence of the sea worthiness of one of the two offending vessels.The MV Congo River having regards to the facts and circumstances of this case.
ii. Whether the learned trial judge erred in law by ordering the limitation of liability for the Respondent who was engaged in unlawful, and illegal activities which caused and continue to cause damage to the Appellants property.
iii. Whether the learned trial judge erred in holding that the Appellant had failed to prove/show the link of causation of the damage to its property from the unlawful acts and commissions of the respondent (by not having any lawful authorization to operate) or that the Respondent and its agents acted negligently with the intent or recklessly with knowledge that such loss would probably result to the Appellants property as required under Section 355 of the Merchant Shipping Act 2007?
iv. Whether the learned trial judge was correct in handling a carte blanche limitation of liability cover to the Respondent by extending the limitation of liability of the Respondent to all present and future negligent acts or omissions of the Respondent for the entire duration of the Eko Atlantic project?
v. Whether the learned trial Judge erred in law when he held that the MV BREGHEL being a Dredger was exempted from the requirements of compulsory pilotage (notwithstanding that it was not operating within the ports precincts) contrary to the provisions of the Section 42 (3) (f) of the Nigerian Ports Authority Act?
The Respondent on its part formulated 3 issues for determination thus:
a. Whether the learned trial judge was right in holding that the Respondents was entitled to limit its liability as the Appellant had failed to prove existence of the conditions specified
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in Section 354 of the Merchant Shipping Act 2007?
b. Whether the learned trial judge was correct in its decision that the Respondent was entitled to limit its liability for losses or damage arising from the Respondents dredging works in furtherance of the Eko Atlantic City which is still ongoing?
c. Whether the learned trial judge was correct in holding that the M.V. Breughel being a dredger from the requirements?
I have considered the Notice of Appeal, the Record of appeal and the briefs of parties in this appeal and I have resolved to adopt the 3 issues formulated by the Respondent which cover all the 5 issues distilled by the Appellant for a complete resolution of all areas of complaint in the said judgment.
They shall be considered all at once to avoid repetition because the issues are inter related.
ARGUMENTS
It was submitted on behalf of the Appellant that the learned trial Judge was wrong in ordering the limitation of liability of the Respondent because it did not provide any evidence of the sea worthiness of The MV Congo River required before the Respondent can be entitled to limit the liability of the vessel, referred to Sections 352 358 of the Merchant Shipping Act 2007. The Appellant submitted that under the extant Merchant Shipping Act, the limit of liability will be broken where the ship owner fails to discharge the burden that the damage was not as a result of his act or omission, it referred to Channell J in McFadden v Blue Star Line (1905) 1 KB 697 and The Derby (1985) 2 Lloyds Rep 325. Further, the Appellant submitted that the Respondent herein did not seek and or obtain the relevant permits and authorizations from the Nigerian governmental departments and agencies prior to and or before the commencement of phases 2, 3, 4, 5 and 6 in the dredging and reclamation works in relation to the Eko Atlantic project, which it was contracted to undertake and consequently, it will not be allowed to limit its liability as the fault will be directly attributable to it, referred to SHIPCARE NIG. LTD. V. OWNERS OF THE MV FORTUNATO (2011) 7 NWLR 205 and THE DERBY (1985) 2 LLOYDS. REP 325. Also, the Appellant submitted that upon failure of the Respondent to provide the Court with any documentation for the primary offending vessel, i.e. the CONGO RIVER, the onus then shifted to the Respondent to rebut such evidence which it failed to do and as such its application must also fail, cited INSURANCE BROKERS OF NIGERIA V. ATLANTIC TEXTILES MANUFACTURING COMPANY LTD. (1996) 8 NWLR (PT. 466) 316 AT 318 AND VULCAN GASES LTD. V. GESELLSCHAFT F. INDUSTRIES (2001) 9 NWLR (PT. 719) 610 AT 667.
On issue two, it was submitted that the trial judge erred in ordering the limitation of liability for the Respondent who admitted that it was engaged in illegal and unlawful activities in Nigeria. It contended that a Court of law cannot be seen to be condoning illegality and rewarding criminal activities. Further, the Appellant submitted that the above findings of the trial Court are perverse because it took into account matters which he ought not to have, referred to ATOLAGBE V. SHORUN (1985) NWLR (PT. 2) 360; UKATTA V. NDUNAZE (1997) 4 NWLR (PT. 499) 257 AT 276; NDILI V. AKINSUMADE (2000) 8 NWLR (PT. 668) 39; EGBA V. APPAH (2005) 20 NWLR (PT. 934) 464 as well as Section 122(2) of the Evidence Act 2011. In addition to the above, the Appellant submitted that the Respondent herein misrepresented on oath to the trial Court by stating that it had procured all the permits and licences required for its activities in Nigeria in a bid to hoodwink and deceive the trial Court into coming to an unmerited finding. It further argued that the Court ought not to have permitted the Respondent (in the middle of the proceedings) to turn around and admit that it does not have any permit but that however these permits were supposed to be procured by its contracting partner.
The Appellant argued that the reasoning of the trial Court is perverse and is not in line with the law because it failed to take cognizance of the laws or enactments of the country including subsidiary
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legislation and that the decision be set aside. According to the Appellant, there was thus no basis for the Court to come to a finding that the permits complained about could be obtained at any time. It therefore argued that where a party does not seek for such approvals or conduct such mandatory environmental impact assessment of its proposed task, it literally undertakes such a task in total disregard of limits imposed by laws and regulations and operates without provision for the impact of its activities on the public and as such, the Courts cannot grant such a party a discretionary or equitable relief, cited the case of ABIMBOLA GEORGE AND ORS V. DOMINION FLOUR MILLS LTD (1963) 1 ALL N.L.R 71 in support. The Appellant submitted that the Respondent failed to seek and obtain a cabotage or ministerial waiver certificate prior to the commencement of the dredging activities of the MV CONGO RIVER for phase 2 of the Eko Atlantic project in 2012, it urged this Court to draw necessary inferences from the facts and evidence before the Court to find that the Appellant at the trial court established the link between the Respondents illegality and damage done to Appellants property, referred to OKPIRI V. JONAH (1961) 1 SCNLR 174; (1961) ALL NLR 102 AT 104, 105; LAWAL V. DAWODU (1972) 8-9 SC 83 @ 114 – 151; BALOGUN V. AGBOOLA (1974) 10 SC 111-112 AND FELIX OKOLI EZEONWU V. CHARLES ONYECHI & ORS. (1996) 3 NWLR (PT. 438) 499 @ 526.
On issue three, the Appellants argument under this issue is that the Respondent acted negligently with intent to cause damage or recklessly with knowledge that their unlawful and illegal activities could probably (or likely) cause damage to the Appellants property, it referred to Section 355 of the Merchant Shipping Act 2007 and the following cases;AGBONMAGBE BANK LTD V. C. F. A. O (1966) 1 ALL NLR 140; OYIDIOBU V. OKECHUKWU(1972) 5 SC 191, ORHUE V. NEPA (1998) 9 NWLR (PT. 557) 187, KALLA V. JARMAKANS TRANSPORT LTD (1961) ALL NLR 747; NGILARI V. MOTHERCART LTD (1999) 13 NWLR (PT. 636) 626, KOYA V. U.B.A (1997) 1 NWLR (PT 481) 251. The Appellant argued that there was statutory evidence of a duty of care on the part of the Respondent and there was also documentary proof and admission of the breach of the said duty as the Respondent was at the very least negligent or careless in dredging without lawful permits and licences. It urged that the lower Courts finding to the contrary be overturned, referred to ANYAH V. IMO CONCORDE HOTELS LTD. (2002) 18 NWLR (PT.799) 377. In addition, the Appellant submitted that there was ample evidence by the facts before the Court that the Respondent at the very least was reckless and that from their conduct there was no way they should not have known that their actions could probably (possibly) or likely cause damage to another.
The Appellant further argued that the Respondent cannot run away from its liability in obtaining permits and pass the buck to its contracting party and partner because as an independent contractor, it is personally liable for its own actions even though the work was for the benefit of a third party, referred to A.C.B. LIMITED V APUGO (1995) 6 NWLR (399) 65 AT 83, ALBERT E REED & CO. V. LONDON & ROCHESTER TRADING CO. LTD.[1954] 2 LLOYD’S REP. 463, ROLLS-ROYCE PLC V HEAVYLIFT-VOLGA DNEPER LTD [2000] 1 ALL E.R. (COMM) 796,SHAWINIGAN LTD V VOKINS & CO LTD [1961] 3 ALL ER 396. The Appellant also relied on The London Convention on Limitation of Liability for Maritime Claims, 1976 (as amended by Protocol of 1996 to back up its arguments and called on this Court to decide issue in its favour in view of the dearth of Nigerian case law on this point.
Under issue 4, the Appellant submitted that the learned trial judge was wrong to have extended the limitation of liability of the Respondent to all present and future negligent acts or omissions of the Respondent for the entire duration of the Eko Atlantic project because limitation of liability does not
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apply to future or anticipated damage that the Applicant may be involved in. It referred to Sections 352 (1) (a-g) and Sections 253 of the Merchant Shipping Act in arguing that the words or provisions of the statute are clear and unambiguous and should be given their literal interpretation, also referred to the cases of OMOIJAHE V. UMORU & ORS. (1999) 5 SCNJ 280, IBRAHIM V. OJOMO & 3 ORS (2004) 4 NWLR (PT. 862) 89, CITY ENGINEERING (NIG.) LTD V. NIGERIAN AIRPORT AUTHORITY (1999) 9 SCNJ 263, HON. JUSTICE E.Q. ARAKA V. HON. JUSTICE DON EGBUE (2003) 7 SCNJ. 114, VICTOR NDOMA-EGBA V. CHUKWUOGOR & 3 ORS (2004) 6 NWLR (PT.869) 382 and NDIC V. OKEM ENTERPRISES LTD. & ANOR. (2004)10 NWLR (PT. 880) 107 @ 196 in support.
Finally, with respect to issue 5, the Appellant submitted that there was uncontroverted evidence and admissions before the Court that the dredger vessel MV BRUGHEL was conducting its activities at Kuramo Waters in furtherance of the Eko Atlantic project and not at the port and that since a dredger operating outside the limits of a port is not exempt from compulsory pilotage, the trial Court came to a wrong decision. The Appellant submitted that the intention of the legislature in the statute was not clearly interpreted by the trial Court, referred to AGRO ALLIED ENT. LTD. V. MV NORTHERN REEFER & 2 OTHERS (2009) 5-6 S.C. (PT 1)110 @ 122 and that the provisions of Section 42(3) of the NPA Act must be interpreted as a whole section in order to achieve harmony of the entire section, referred to AKAIGHE V. IDAMA (1964) ALL NLR (REPRINT) 317 @ 322 and MBANI V BOSI (2006) 11 NWLR (PART 991) 400 @ P. 21. It urged the Court to set aside the judgment of the trial Court and find in its place, a refusal of the Respondents right to limit liability.
It was submitted on behalf of the Respondent that from a community reading of Sections 351(2)(a),352(1) and 354 of the MSA, an application for limitation of liability is automatic if no conduct(s) barring limitation are proved. According to the Respondent, Section 354 of the Merchant Shipping Act, 2007 which is basically a reproduction of Article 4 of the 1976 Convention on Limitation of Liability for Maritime Claims (the 1976 Limitation Convention), provides for the instances where an Applicant will not be entitled to a decree of limitation of liability and none of these conditions were met. It urged this Court to interpret the use of the word shall in Section 352(1) of the MSA in a mandatory sense, citing the cases of TUKUR V. GOVT OF GONGOLA STATE (1989) 4 NWLR (PT.117) 517 AT 579, AGIP NIG. LTD V. AGIP INT. & ORS. (2010) 5 NWLR (PT. 1187) 348 AT 386-387, NIGERIA L.N.G. LTD. V. AFRICAN DEV. INS. CO. LTD. (1995) 8 NWLR (PT. 416) 677 and KALIEL V. ALIERO (1999) 4 NWLR (PT. 597) 139 in support.
The Respondent further argued that since the Appellants claim in Suit Number FHC/L/1329/2015 is in direct connection with operation of the Respondents ships, it falls within Section 352(1)(a) of the MSA and is therefore subject to limitation of liability. With respect to proof, the Respondent argued that where there is no proof of conduct barring limitation as in this case, the shipowners liability must be limited, referred to Section 63 of the Companies and Allied Matters Act (CAMA) as well as the cases of AVOP PLC V. A.-G., ENUGU STATE (2000) 7 NWLR (PT. 664) 260 AT 275, YALAJU AMAYE V A.R.E.C LIMITED (1990) 4 NWLR (PT. 145) 422 AT 451, LENNARDS CARRYING CO. V. ASIATIC PETROLEUM CO. (1914 -15) ALL ER REP 280 AT 283, BOLTON HL(ENGINEERING) CO LTD V. GRAHAM TJ & SONS LTD (1957) 1 QB 159, ISHOLA V. S.G.B (NIG.) LIMITED (1997) 2 NWLR (PT.488) 405 and ANYAEBOSI V. R.T BRISCOE (NIG.) LTD (1987) 3 NWLR (PT. 59) 84.
It argued that contrary to the submissions of the Appellant, the burden of proof lies with the opposing party who is the party seeking to strip the shipowner of the right to limit and claim full damages for the alleged loss or damage, referred to Section 131 (2) and 132 of the Evidence Act relying on the cases of BUHARI V. OBASANJO(2005) 50 WRN 1; KALU V. FRN (2014) 1 NWLR (PT. 1389) 479; AD V. FAYOSE (2005) 10 NWLR (PT.932) 151;
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OKUNDAYE V. OYEGUN (1999) 4 NWLR (PT. 598) 207, MOTANYA V. ELINWA (1994) 7 NWLR (PT. 356) 252, MSC ROSA M (2000) 2 LLOYDS REP 399 AT 403, BOWBELLE (1990) 1 LLOYDS REP. 532, CAPITAN SAN LUIS (1993) 2 LLOYDS REP. 573, BREYDON MERCHANT (1992) 1 LLOYDS REP. 373. The Respondent argued that the onus of proof under Section 354 of the MSA requires that the Appellant not only identifies the person who committed the act or omission but also specify whether the person is the alter ego of the Respondent or its servant or agent but this condition was not met, referred to NBCI V. INT. GAS (NIG.) LTD (1999) 8 NWLR (PT. 613) 119 CA AT 129 D E; DELTA STEEL (NIG.) LTD. V. A.C T INCORPORATED (1999) 4 NWLR (PT. 597) 53 AT 66, PHARMACEUTICAL CO LTD V QUANTAS AIRWAYS LTD. (1991) 1 LLOYDS REP. 288 AT 291, MSC ROSA M (2000) 2 LLOYDS REP. 399 AT 401, NUGENT V. MICHAEL GOSS AVIATION LTD. (2000) 2 LLOYDS REP. 222.
The Respondent submitted that the Congo River was seaworthy in all respects, that the Appellant failed to prove otherwise and that in any case, the unseaworthiness of a vessel is not ipso facto conclusive proof of conduct barring limitation, referred to NARUMAL & SONS LIMITED V. N.B.T.C LIMITED (1989) 2 NWLR (PT.106) 730 @ 758. With respect to permit and approval, the Respondent argued that an alleged failure to obtain permits and approvals cannot be the personal act or omission of a person who had no duty to obtain them in the first place. The Respondent therefore submitted on this issue that the learned trial judge was right in holding that the Respondent was entitled to limit its liability as the Appellant had failed to prove existence of the conditions specified in Section 354 of the Merchant Shipping Act 2007.
With respect to issue two, the Respondent submitted that the dredging works being undertaken by the Respondent in furtherance of the Eko Atlantic City project and is a continuing act spanning a number of years and as such the learned trial judge was right in determining that the Respondent was entitled to limit its liability for losses or damage arising from the Respondents dredging works in furtherance of the Eko Atlantic City which is still ongoing. It argued that damages may arise as a result of singular acts as well as continuing acts and that it would be unjust and unreasonable for the limitation of liability to relate only to alleged damages. It also submitted that in determining the scope of application of limitation of liability, the nature of the act or omission which caused the alleged damage must be taken into consideration and where the act is a continuing one like dredging, the determination must apply to the whole process, referred to Section 9(1) of the Admiralty Jurisdiction Act (AJA) and the case of TUKUR V. GOVT OF GONGOLA STATE (1989) 4 NWLR (PT.117) 517. The Respondent thereafter submitted that the Appellant is indulging in needless speculation as no other claim for damages has been brought against it, and therefore urged this Court not to be engaged in speculative claims or arguments. It referred to the following cases in support; INTRA MOTORS (NIG.) PLC V. AKINLOYE (2001) 6 NWLR (PT. 708) 61, CHINWEZE V. MASI (1989) 1 NWLR (PT. 97) 254 @ 267; OVERSEAS CONSTRUCTION CO. (NIG.) LTD. V. CREEK ENTERPRISES (NIG) LTD. (1985) 3 NWLR (PT. 13) 407; IHEWUEZI V. EKEANYA (1989) 1 NWLR (PT. 96) 239, NNPC V. IDONIBOYE-OBU (1996) 1 NWLR (PT. 427) 655 AT 672, IKENTA BEST (NIG.) LIMITED V. A.-G., RIVERS STATE (2008) 6 NWLR (PT. 1084) 612 @ 653 and BAMGBEGBIN V. ORIARE (2009) 13 NWLR (PT. 1158) 370 @396.
With respect to the Respondents issue 3, the Respondent submitted that based on Section 42(3)(f) of the Nigeria Ports Authority Act, the learned trial Judge was correct when he held that the M.V Breughel was exempted from compulsory pilotage. It also referred to Order 2 of the Ports (Declaration of Port Limits) Orderand went on to submit that based on the definition of ports limits therein, the Congo River and the Breughel area of operation falls within the limits of a port and are
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therefore exempted ships within the meaning of Section 42(3)(f) the NPA Act. The Respondent also referred this Court to Section 2 of the Nigeria Ports Authority (Pilotage Districts) Order (Legal Notice 252 of 1959) and submitted that assuming the Respondents vessels are not exempted under Section 42(3)(f) of the NPA Act, the Appellant did not prove before the trial Court that the vessels were operating within the compulsory pilotage area in the Lagos port limits without a licensed pilot. The Respondent therefore urged the Court to resolve the appeal in its favour and dismiss the appeal in its entirety.
RESOLUTION
The Court below reviewed extensively statutory provisions and treatise by different authors on background reasons as to why and how a ship owner can limit liability in a claim against it. Limiting liability is simply explained by Nigel Meeson and John Kimbell, Admiralty Jurisdiction and Practice, 4th Edition, Informa, London, 2011 at pages 283 in the following words:
The concept of limitation of liability is simple. It is that a ship owner or some other person connected to the operation of a ship is entitled to limit his liability in respect of certain maritime claims arising out of an occurrence to a particular amount, irrespective of the total amount of such claims. The rationale usually cited in English case law and commentaries for the right to limit liability is the public policy in encouraging shipping trade. This is said to override the competing public policy in compensating the victims of wrongdoing in full.
The issue of limiting liability is not just a common law or custom of maritime claims, our jurisprudence has also provided for it by the Merchant Shipping Act, 2007. Section 351 provides for persons entitled to limitation of liability, it provides thus:
351 (1) In this part of this Act, the Ship owners and salvors, as defined in Subsection (2) of this section may limit their liability as provided in this part of this act.
(3) If any claims set out in Section 353 of this Act are made against any person for whose act neglect or default the ship owner or salvor is responsible, such person shall be entitled to avail himself of the limitation of liability provided for in this part of this Act.
It is therefore statutorily provided for a ship owner against whom there is a certain claim to limit his liability.
Not all maritime claims can enjoy limitation of liability, the claims subject to limitation of liability are listed in Section 352 of the Merchant Shipping Act and it provides thus:
Subject to Sections 354 and 355 of this Act, the following claims, whatever the basis of liability may be, shall be subject to limitation of liability-
(a) Claims in respect of loss of life or personal injury or loss or damage to property (including damage to harbor works, basis and waterways and aids to navigation), occurring on board or in direct connection with the operation of the ship or with salvage operations, and consequential loss resulting therefrom;
(b) Claims in respect of loss resulting from delay in the carriage by sea of cargo, passengers of their luggage;
(c) Claims in respect of other loss resulting from infringement of rights other than contractual rights, occurring in direct connection with the operation of the ship or salvage operations;
(d) Claims in respect of removal, destruction or rendering harmless of the cargo of the ship;
(e) Claims of a person other than the person liable in respect of measures taken in order to avert or minimize loss for which the person may limit his liability in accordance with this part of the act, and further loss caused by such measures; claims in respect of floating platforms constructed for the purpose of exploring or exploiting the natural resources of the sea-bed or the subsoil thereof;
(f) Claims in respect of the raising, removal, destruction or the rendering of a ship which sunk,
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wrecked, stranded or abandoned, including anything that is or has been on board such ship.
Obviously the claim filed by the Appellant in Suit Number FHC/L/1329/2015 comes under claims that liability can be limited. The Respondent in its suit sought for the following orders:
i. A declaration that the Plaintiff is entitled to limit its liability (if any) in respect of any and all loss or damage whatsoever, including but not limited to property or any loss arising from the dredging of the Lagos Shoreline in furtherance of the Eko Atlantic project (the Dredging).
ii. A declaration that the tonnage of M.V. BRUEGHEL for the purpose of this limitation Action is 11,136 tonnes and a decree that the liability in respect of any and all claims arising out of or in relation to the Dreedging of the Plaintiff is limited to USD5,251,926.23(Five Million, Two Hundred and Fifty one Thousand, nine hundred and twenty six dollars and twenty three cents) or its Naira equivalent and no more.
iii. An order that upon the Plaintiff providing a bank guarantee in the said sum of USD5,251,926.23 (Five Million, two hundred and fifty one thousand, nine hundred and twenty six dollars and twenty three cents) or its naira equivalent, all further proceedings in any action or arbitration arising out of the said dredging of the Lagos Shoreline in furtherance of the Eko Atlantic City Project be stayed except for the purpose of taxation and payment of costs and that the above named defendants, and all or any other persons whatsoever interested in the vessel M.V.BRUEGHEL or other things on board, or any of its sister ships or having any right, title, or interest whatsoever with reference to , or arising out of, the said Dredging, be restrained from bringing any action or actions against the Plaintiff or the vessel M.V. BRUEGHEL or any of its sister Ships in respect of same, in any other Court other than the Federal High Court of Nigeria which shall be subject always to limitation of liability as set out herein.
iv. That all proper directions may be given by the Court for ascertaining the persons who have any just claim for loss or damage arising out of or caused by the Dredging.
v. That the above sum may be ratably distributed among the several person who may take out their claims thereto and that the proper directions may be given for the extension of such claimants as shall fall in their claims within a certain time to be fixed for such purpose.
The Court below granted the reliefs and made certain orders namely-
a. That the Plaintiff shall advertise within 3 months which any person who claims to have a maritime claim against the applicant in respect of which the applicants liability is determined may be Pursuant to Order 15 Rule 3(a) and (b) (i) and (ii) of the Admiralty Procedure Rules.
b. An order is hereby made for the limitation fund aforesaid to be constituted from the amount determined above (ii).
c. That the above sum may be ratably distributed among the several person (sic) who may take out their claims thereto and that the proper directions may be given for the extension of such claimants as shall fail in their claims within a certain time to be fixed for such purpose.
The contention of the Appellant is that though the law allows for limitation of liability, the Respondent herein did not qualify to enjoy the legal window allowed to limit its liability to claims against it.
The main reason advanced is that the vessels lack relevant and up to date papers to operate in Nigerian waters. The Appellant dwelt so much on the alleged lack of papers and documents. The Court below over ruled that objection.
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The Act has provided for when a claimant can be disqualified from limiting his liability, see Section 354 of the Merchant Shipping Act, 2007 and it provides as follows:
A person liable shall not be entitled to limitation of liability if it is proved that the loss or damage resulted from his personal act or omission of his servants or agents acting within the scope of their employments committed with the intent to cause such loss or damage or recklessly and with their knowledge that such loss or damage or recklessly and with knowledge that such loss would probably result.
It is obvious that it is only the party challenging the limitation action taken by a ship owner that has the burden of proving that one of the conditions stipulated in Section 354 exists to bar the ship owner from getting a limitation of liability order. The Appellant listed several infractions that should have worked against the Respondent, these are:
i. That the loss did not arise from the Ship owners personal act or omission.
ii. That the loss or damage did not result from the acts or omission of the ship owners servants or agents acting within the scope of their employment committed with the intent to cause such loss or damage; or recklessly and with knowledge that such loss would probably result.
It is the opinion of the Appellant in the summarized arguments that the burden placed on the ship owner is more stringent in view of the 2 conditions listed above. I disagree with the Appellant that the ship owner must establish that it is not caught by the 2 conditions in its claim and agree with the Court below that since the Appellant opines that the 2 conditions exist, it is duty bound to establish them in order to convince the Court that the ship owner is not entitled to the indulgence of limiting his liability, more so the claim of the Appellant in the main action before another Court is not that the damage was caused due to lack of relevant papers for the vessels called relevant papers or has expired papers. The Court below was therefore right in its findings when it held thus:
Perhaps more importantly, the Defendant has not established any causal link between failure to secure permits, licenses and approvals and the alleged loss. It remains in clear how a failure to obtain permits licenses and approvals would have caused the loss in any event. There is no evidence before the Court that the permits would not have been given as a matter of course and/or retrospectively if required, or therefore that these particular failures caused the loss. On this basis, this unwarranted attempt to bar the right of the Plaintiff must fail.
The suit by the Respondent leading to this appeal was premised on the claim instituted by the Appellant and the law says it can limit its liability. With a clear stipulation on when limitation shall not be available to a party, any party contending another party cannot limit liability must establish the existence of either of the two conditions listed above. More so, the Appellants suit in the sister case was not hinged or connected to the alleged infractions or situations named in Section 354 of the Act.
The Appellant submitted that the findings of the Court below were perverse because it did not take cognizance of the inability of the Respondent to exhibit their licenses and permits including Environmental Impact Assessment Certificate. In as much as I agree that the Respondent should possess valid licences and permits, the excuse given that it is an agent of a disclosed principal is a lame excuse and untenable. To possess valid permits and licenses would mean the vessel is fit for the purpose and in that sense, the point being made by the Appellant is valid but for its failure to provide the nexus and evidence between valid licenses and the causal of the damage. The Court below found that loss or damage did not result from the ship owners personal act or omission. Secondly, that the loss or damage did not result from acts of his servants acting within the scope of their employment committed with intent to cause such loss or damage or recklessly and with knowledge that such loss would probably result. To prove either of the two conditions requires evidence
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which is lacking in this instance. Failure to provide certificates and permits alone cannot prove the onerous duty imposed by the law to deny a ship owner limiting his liability.
There is need for evidence to prove that the vessels are not sea worthy. The examples of unseaworthiness of a vessel given by the Appellant are stated thus:
i. An incompetent crew
ii. A crew which is insufficiently instructed or insufficient in numbers
iii. Out of date charts
iv. Insufficient bunkers for the voyage (depends on type of charter party)
v. Stowage which affects safety of the ship
vi. Deficient systems ashore or on board
vii. The absence of documentation required by law (including local laws for the satisfactory prosecution of the contemplated voyage e.g. a deratting certificate.
Appellants reliance on the case of SHIPCARE NIG LTD V OWNERS OF THE MV FORTUNATO supra is inappropriate because of the nature of damage and how it arose is quite different and in that case the competence of the crew was in issue unlike in the claim of the appellant which the alleged damage arose out of dredging activities in which had resultant effect on the coastline and damage to his property.
On Appellants issue two, the contention is that the Respondent was on illegal operations for want of relevant licenses, permit and an Environmental Impact Assessment Report. It was made out even in the judgment appealed against that licenses, permit were to be procured by the employer since the Respondent was engaged to dredge for Eko Atlantic Project which has Lagos State government partnership. The Court below explained it away in the context of agent of a disclosed principal and therefore, the Respondent is not liable. Here I disagree with the Court below and align partially with the Appellant. The relationship between the Respondent is purely contractual and not a mere or simple agent of a disclosed principal case. Nigerian laws are flouted and it cannot be excused by their claim of being agents of a disclosed principal. It is the duty of the Respondents to be in possession of all relevant permits before commencing the project. Respondents were engaged pursuant to a contract, it is a contractual relationship for profit. It is not a servant master relationship but engaged to carry out the job without instructions on day to day duties from the Appellant so there is no agency in this situation, see A.C.B. LIMITED V APUGO (1995) 6 NWLR (Pt. 399) 65 at 83 which held thus:
An independent contractor is one who undertakes to produce a given result, but so that in the actual execution of the work he is not under the order or control of the person from whom he does it and may use him own discretion in things not specified before hand. The test of the distinction between an agent and an independent contractor is the existence of a right of control over an agent in respect of the manner in which his duty is to be done. A servant is an agent who works under the supervision and direction of his employer but independent contractor is one who is his own master.
It is also settled that an agent can be liable even when there is a disclosed principal, see BRONWEN ENERGY TRADING LIMITED V OAN OVERSEAS AGENECY NIGERIA (2014) LPELR-24111(CA) and THE M.V. CAROLINE MAERSK & ORS V NOKOY INVESTMENT LTD (2002) LPELR- 3182 (SC).
Furthermore, the approval the Respondent attached to its affidavit was for project one while they are engaged to dredge for project 2 and 3. So the approval was spent, the project having gone to stage 2 and 3. The M.V Congo River was handling Phase 2 while M.V. Brueghel was
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for Phase 3, 4, 5 and 6 going by Exhibit NA2 (the copy of the master plan for Eko Atlantic Project). In no way should the Court stamp and give legitimacy to illegal activities in the name of a profitable project. I therefore agree with the Appellant that this aspect of the judgment is perverse since there was evidence that the Respondent should have in its possession valid permits, licenses and Environmental Impact assessment report before going into the dredging, more so, no scope of work has disclosed, no methodology for the dredging was presented. This is contrary to the position of the Respondent in presenting the action for limitation of liability, wherein it averred that all relevant permits were secured when in fact they had none (see paragraph 8 of the affidavit supporting the Originating summons). It is on record that the Respondent later admitted that the necessary permits were not obtained. An Environmental Impact assessment report before commencement of dredging is a requirement of law, see the Environmental Impact Assessment Act, 1992 and National Environmental (Coastal and Marine Area Protection) Regulations No.18 of 2011. This is clear impunity on the part of the Respondent to neglect or refused to procure valid permits, licences and approvals before commencing dredging close to the coastline which would definitely affect the natural shoreline in that area with far reaching effects. To say because Lagos State government is involved, therefore the Respondent did no wrong is perverse. The Respondent couldnt have done that in other climes. They are bound to have valid permits, licenses and reports in the course of the dredging.
Part of the requirements for the dredgers as contended by the Appellant is that M.V. Brueghel should have pilotage or an exemption under Section 42(3) of the Nigeria Ports Authority (NPA) Act. The said section requires that certain ships operating within the ports district must be under pilotage except those exempted and as listed therein. The Court found that the Respondent was operating within a port district but was exempted and therefore not required to be under pilotage. The dredgers exempted under Section 42(3)(f) of the NPA Act are:
(3) for the purposes of Subsection (1) of this section, the following ships are excepted ships- (f) tugs, dredgers, barges, or similar vessels, the ordinary course of navigation of which does not extend beyond the limits of a port.
The Court rightly found that M.V. Breughel is operating within the precincts of a port and being a dredger and its ordinary course of navigation is by Kuramo waters, it is not beyond the limits of the port, it is exempted from under pilotage. That is the essence of the statutory provision, the vessel is undisputedly a dredger and is within a port district and therefore does not have to be under pilotage. And if the vessel was operating outside a port district, then the limits of the port district must be established by evidence. There is no such evidence in the record that Kuramo water is outside the Port district. The ordinary course of a dredger is for the dredger to be within the area of its operation so M.V. Breughel was in the ordinary course of its navigation at Kuramo waters. That finding is not perverse.
The Court below cannot be faulted on its interpretation of Section 354 of the Merchant Shipping Act that the burden to prove that the ship owner is not entitled to limit his liability based on the two grounds is on the person alleging the existence of the two grounds. Section 136 of the Evidence Act also places the burden of proof on he who asserts the positive. The requirement here is proof that the damage was from his personal act or omission or that of his staff intent. The Appellant asserts that the omission of the ship owner with regards to omissions to get relevant permits and licenses and renewed papers are proof of intent and that should disentitle him to the limitation of liability.
By making the application, the Respondent was saying I am not caught by the two conditions listed in Section 354 of the Merchant Shipping Act. Since the Appellant was the one saying the Respondent was in breach, then the burden falls on him to so establish and that is what the trial Court meant by saying that the two grounds were not established by the Appellant. And if that is the requirement, did
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the Appellant supply evidence of negligence or recklessness with intent and knowledge that such acts or omissions would probably result in the destruction of the Appellants property? There was no such evidence.
In any case, the said Section 354 states that limitation of liability cannot be allowed if it is proved that damage arose from the ship owners personal act or omission. Proof of causation of damage must precede and form part of the objection to the limitation. The person to prove the damage and what caused it is the Appellant. I would want to opine the other suit is fundamentally on the damage and how it was caused. It is therefore not practicable for the Appellant to effectively achieve that in an originating summons which is determined on affidavit evidence.
I think that is reserved for the suit against the Respondent. Its relevant there and not in this appeal.
It is obvious that the Appellant who is not complaining about the quantum of the limitation fund is crying wolf where there is no need. The Court is statutorily empowered to make the order with all the nuances accompanying it. The Appellant should be concerned about its claim and how it will be established and not fight the battle of other claimants who have not showed up. Part of the order made was that the Respondent should make a publication alerting any party who has a claim to show up.
Though I agreed with the Appellant that the Respondent has flouted statutory provisions requiring it to possess permits, licenses and reports and that it should not operate without those relevant permits, the appeal is still lacking in merit since the foundation of the claim herein and in the other suit is not the absence of such permits but physical damage caused to the property of the Appellant.
On the whole therefore, the appeal is unmeritorious and is hereby dismissed. The decision of the Federal High Court delivered on the 16th day of February, 2016 by HON. JUSTICE BUBA is hereby affirmed.
N50,000 costs in favour of the Respondent.
MOHAMMED LAWAL GARBA, J.C.A.: I have read a draft of the lead judgement written by my learned brother, Yargata Byenchit Nimpar, JCA in this appeal wherein the crucial questions of the Appellants burden of proof of the conditions for denying the limitation of liability on the part of the Respondent and causation of damages and losses allegedly done to and suffered by the Appellant were adequately considered. As demonstrated in the lead judgement, the Appellant bears the burden of proving that the conditions stipulated in Section 354 of the Merchant Shipping Act (MSA) 2007, exist to disqualify the Respondent from limiting its liability, which it failed to discharge.
I agree that the appeal is devoid of merit and join in dismissing it in terms of the lead judgement.
JOSEPH SHAGBAOR IKYEGH, J.C.A.: I agree with the exhaustive judgment prepared by my learned brother, Yargata Byenchit Nimpar, J.C.A., which I had the privilege of reading in advance.
Appearances
DOLAPO AKINRELE, SAN WITH HIM, ANTHONY NKADI, JACINTA OBINUGWU and KEMI OLUWA. For Appellant
AND
FUNKE AGBOR, SAN with him, K. K. OKWUJIAKO. For Respondent
Appearances
FIDELITY BANK PLC V. THE M.T TABORA & ORS
On Friday, the 18th day of May, 2018
SC.106/2010Before Their Lordships
MUSA DATTIJO MUHAMMAD Justice of The Supreme Court of Nigeria
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN Justice of The Supreme Court of Nigeria
CHIMA CENTUS NWEZE Justice of The Supreme Court of Nigeria
EJEMBI EKO Justice of The Supreme Court of Nigeria
Between
Before Their Lordships
MUSA DATTIJO MUHAMMAD Justice of The Supreme Court of Nigeria
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN Justice of The Supreme Court of Nigeria
CHIMA CENTUS NWEZE Justice of The Supreme Court of Nigeria
EJEMBI EKO Justice of The Supreme Court of Nigeria
Between
FIDELITY BANK PLC-Appellant
AND
1. THE M.T. ”TABORA”
2. NORTHERN FOX SHIPPING N.V.
(THE OWNERS OF M.T. ”TABORA”)
3. ERES N. V. BELGIUM
(THE CHARTERER OF THE M.T. ”TABORA”)
4. THE MASTER OF THE M.T. ”TABORA”-Respondents
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EJEMBI EKO, J.S.C. (Delivering the Leading Judgment): The Appellant, as the Plaintiff at the Federal High Court, Lagos, in an action in rem against the ship M. T. TABORA, took out a Writ of Summons on 17th December, 2002. The Writ of Summons was on 15th December, 2002, specially endorsed with the Statement of Claim. The Writ and the Statement of Claim have thereon six (5) Defendants, and they were to be served on the 1st, 2nd and 3rd Defendants, respectively the vessel, THE M.T. TABORA, Northern Fox Shipping (the owners of M.T. TABORA)and Eres N. V. Belgium. The vessel M. T. TABORA was in the Nigerian Waters until 15th December, 2002 when it sailed out of Nigerian Territorial Waters. Thus, the vessel M. T. Tabora, the 1st Defendant, having sailed out of Nigerian Territorial Waters and out of the jurisdiction of the Federal High Court a day before the action was filed on 16th December, 2002 and two days before the Writ of Summons against her was issued on 17th December, 2002.
On 22nd March, 2005, because the Writ of Summons could not be served earlier, Appellant, as the Plaintiff, then filed a motion ex parte praying for leave of the Federal High Court for the Writ of Summons, the Statement of Claim and the other processes in the action to be served on the Defendants, the Respondents herein, out of jurisdiction. The application ex parte was granted on 8th April, 2005, for the 1st, 2nd, 3rd and 4th Defendants to be served out of the jurisdiction of the trial Federal High Court “by DHL” on the 2nd Defendant, Northern Fox Shipping, P.O. Box 9657, Williamson Curacoa West Indies and Hansa Huis Eernest Van Dijikaai 10, Bus B, 2000 Antwerp Belgium – 10. It was further ordered “that the 1st, 2nd, 3rd and 4th Defendants enter appearance within 35 days of the date of dispatch of the processes herein by DHL Courier.” On the said 8th April, 2005, vide the same application, the 5th and 6th Defendants were struck off the Writ of Summons, and consequently out of the action.
On 12th April, 2005, the Respondents, as the remaining defendants, applied to the trial Court for an order setting aside the orders it made concerning them on 8th April, 2005. They had apparently become aware of the action pending against them. The trial Federal High Court heard the parties on the motion filed on 12th April, 2005.
In its ruling delivered on 20th December, 2005 the trial Federal High Court granted the application, discharged the order made on 8th April, 2005 and set aside the order for service out of jurisdiction, through DHL courier, the writ of Summons and the processes in the action on the Respondents, the remaining defendants.
Meanwhile, before the Ruling delivered on 20th December, 2005, the Appellant, as the Plaintiff had filed on 8th December, 2005 an application for final judgment alleging that the Defendants had defaulted in entering appearance and filing their defence to its action. Against this motion, filed on 8th December, 2005, the Respondents filed on 20th February, 2006 Notice of Preliminary Objection. Both the application for final judgment and the Preliminary Objection to it were very fiercely contested. The ruling on the Preliminary Objection was delivered on 5th June, 2005. The Appellant, as the Plaintiff, did not Appeal the decision contained in the Ruling of 20th December, 2005.
In its Ruling delivered on 5th June, 2006 on the application for final judgment, the trial Court refused the application on the grounds inter alia, at pages 129 – 130 of the record, that –
This Court having in its Ruling of 20th December, 2005 held that its jurisdiction cannot be invoked IN REM against MT TABORA i.e the 1st Defendant and having set aside the leave granted to the Plaintiff to amend its Statement of Claim upon which the Plaintiff’s motion is grounded and having set aside the purported service by DHL of the Amended Statement of Claim on the Defendants out of jurisdiction of this Court, I am unable to enter final judgment for the Plaintiff against the Defendants on a Writ of Summons which has not been served and an Amended Statement of Claim which has been set aside. The Defendant’s Notice of Preliminary Objection is upheld. The Plaintiff’s Motion on Notice dated 8th December, 2005 is hereby dismissed. (Emphasis supplied)
The Appellant appealed the decision vide its Notice of Appeal filed on 13th June, 2006. The Respondents also filed Notice of Preliminary Objection to the Appeal on the ground that the Appellant did not Appeal the decision of 20th December, 2005. The Court of Appeal, Lagos Division heard the Appeal No. CA/L/551/2006, on 19th March, 2009 and
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dismissed it for lacking in merits; hence this further Appeal. The Appeal was brought on a total of 6 grounds of Appeal. The parties, in their respective briefs, argued the Appeal on four (4) issues formulated from the six (6) grounds of Appeal. The issues are as follows –
1. Whether the Court of Appeal misdirected itself and came to a wrong decision in sustaining the Respondent’s Preliminary Objection to the Appellant’s Appeal on the ground that the Appellant did not Appeal against the Federal High Court’s Ruling of the 20th December, 2005.
2. Whether the Court of Appeal erred in law in holding that proceedings which were a nullity could not, unless appealed against, be set aside by the lower Court and in failing to declare as a nullity the Respondents’ motion dated the 12th April, 2005 and filed before the Writ of Summons was served on the Respondents, together with the ensuing proceedings before the Federal High Court.
3. Whether the Court of Appeal erred in law in failing to enter judgment in favour of the Appellant when it was patently clear that the Respondent had no intention of entering an appearance to the suit or filing a defence thereto.
4. Whether the Court of Appeal embarked on an irrelevant consideration of the law relating to service of a Writ of Summons in admiralty proceedings.
The fortune of this Appeal turns on whether the 20th December, 2005 decision of the trial Court was void ab initio and without more ineffectual? At the lower Court the Appellant’s Counsel was, at pages 298 – 299 of the Record, reported to have adopted a stance –
The learned Counsel for the Appellant posed a few questions which I find interesting. The first question is whether a Judge who has made an order for service of Court’s proceedings (sic: processes) on the Respondents by Courier and at the same time ordering them to put up appearance within 35 days, can turn around to set aside the order pursuant to an application by a party who has not been served with the Writ, and the learned Judge based his ruling on factual allegations contained in the affidavit filed in support of the said incompetent motion? The 2nd question is, if the motion filed by Respondents on the 12th April, 2005 seeking to set aside the service of the Writ was incompetent, since it was filed before service of the Writ, can the learned Judge entertain the said motion and rely on averments in the affidavit in support of same to annul retroactively the orders which he had previously made and which had been carried out?
(Emphasis supplied)
The indubitable fact, as can be gleaned from this summarised despondent mood or frustration of the Appellant, is that inspite of the bitter complaints of Appellant that the learned trial Judge was wrong in acceding to the application of the Respondents to set aside the service of the processes ordered to be served on them through DHL Courier Mail Service, and ordering on 20th December, 2005 the setting aside the service, by DHL Courier Mail Services, of the Writ of Summons and the Amended Statement of claim on the Respondents and the order that they enter appearance within 35 days, the orders made on 20th December, 2005 remain subsisting and extant. The Ruling of 20th December, 2005 and the Orders made therein have not been set aside. The hub question on which the entire superstructure of the Appellant’s Appeals at the lower Court and this Court spins are the questions – does that decision subsist, and if it does, of what consequence or effect does it impact on the Appellant’s application for final judgment? The options open to the Appellant, as a party aggrieved by that decision of 20th December, 2005 are two, but in alternative. That is: by way of an Appeal or an application to the same Court to have the decision and the orders therein set aside ex debito justitae on grounds of jurisdictional ultra vires. There is no doubt that a Judge, for the purpose of the latter option, has jurisdiction to set aside his judgment or Ruling that is a nullity: OJIAKO v. OGUEZE (1962) 1 S.C.N.L.R. 112; EKERETE v. EKE (1925) 6 N.L.R. 118, SILIYUN v. MASHI (1975) 1 N.M.L.R. 55. If the learned trial Judge wrongly and without jurisdiction, as the Appellant alleges, assumed jurisdiction to entertain the application resulting in his Ruling of 20th December, 2005 that decision would have been a nullity ab initio and an exercise in futility, which ex debito justitae the said Judge was entitled to set aside.
At the risk of repetition, the Ruling of 20th December, 2005 was not appealed. There was no application to have it set aside ex debito justitae by any party aggrieved thereby.
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It has not been set aside.
There is always, in this realm, a presumption in favour of the correctness of a Court’s judgment; and until that presumption is rebutted and the judgment set aside, it remains subsisting and prevailing between, and binding on, the parties. Consequently, it must be obeyed. Section 168(1) of the Evidence Act, 2011 (formerly Section 150(1) the Evidence Act, 2004) is enacted to provide emphatically that when any judicial act or order is shown to have been done in a manner substantially regular, it is presumed that formal requisites for its validity were complied with. The burden is on the party aggrieved by the judicial act, who thinks otherwise of its validity, to rebut this presumption and move for its setting aside.
This is not the first time the issue: whether a judgment of a Court of competent jurisdiction which a party assumes was per incuriam and a nullity ab initio does not need formal judicial steps taken to have it set aside is coming before this Court. It was addressed in OBA ALADEGBEMI v. OBA FASANMADE (1988) 3 NWLR (pt. 81) 129,and Eso, JSC in his statement opined thus –
– For a Court of competent jurisdiction, not necessarily of unlimited jurisdiction
– has jurisdiction to decide a matter rightly or wrongly. If that Court never had jurisdiction in the matter, then its decision, without jurisdiction, is void. But then should a Court of law not even decide a point? That is: the Court without jurisdiction decided without jurisdiction? Should the decision just be ignored? Surely it would not make for peace and finality which a decision of Court seeks to attain. It would at least be against public policy for persons, without a backing of the Court, to pronounce a Court decision a nullity, act in breach of the decision whereas others may set out to obey it. In my respectful view it is not only desirable but necessary to have such decisions set aside first – (Emphasis supplied)
This view, which not only has the support of the previous decision of the Privy Council in ISAAC v. ROBERTSON(1984) 3 ALL E.R 140, was cited with approval in the subsequent decision of this Court (Full Panel) in ROSSEK v. A. C. B LTD (1993) 8 NWLR (Pt. 312) 382.
The Appellant’s counsel seems to have been carried away by the oft quoted dictum of Lord Denning, MR in MACFOY v. U. A. C. LTD (1961) 3 ALL E. R. 1169 at 1172; (1962) A. C. 152 to the effect that:
If an act is void, then it is in law a nullity. It is not only bad, but incurably bad. There is no need for an order to set it aside. It is automatically null and void without more ado, though it is sometimes convenient to have the Court to declare it to be so. (Emphasis supplied)
This dictum has been rejected in this jurisdiction, as can be seen from the dicta in OBA ALADEGBEMI v. OBA FASANMADE (supra), and ROSSEK v. A. C. B LTD (supra). It does not represent any correct principle of the law in this country. The majority opinion in ROSSEK v. A. C. B LTD (supra) outrightly rejected the said view of Lord Denning, M. R. in MACFOY v. U.A.C LTD (supra) maintaining that it will lead to anarchy. On this, the majority opinion (of 6 against 1) in ROSSEK v. ACB LTD (supra) is that: A judgment of a Court of competent jurisdiction remains valid and binding unless and until it is set aside by an Appeal Court or by the Court itself, where it acted without jurisdiction and there is an unqualified obligation on every person against whom the decision is giving to obey it; and that to hold otherwise is to clothe the person against whom a judgment is given with the discretion to decide, in his wisdom, that the judgment is invalid and not binding on him; and further that this will amount to an invitation to anarchy.
The subsistence of the Ruling of the trial Court delivered on 20th December, 2005 is not in any doubt. It has not been set aside. It, therefore, does not lie in the mouth of the Appellant to say that the decision is not valid or binding. Until set aside the Ruling remains binding on the Appellant for what it decided and ordered. The net result or consequence of that decision is that –
1. the leave granted on 8th April, 2005 to the Appellant, as the plaintiff, to serve the writ of summons, the Amended Statement of Claim and other processes of that Court on the Respondents, as the defendants, out of jurisdiction by DHL Courier Mail Service; and
II. the service on the Respondents, if at all, by DHL Courier of the writ of Summons, the Amended Statement of Claim and the other processes in the suit and
III. the order directing the Respondents as defendants, to
…………………….D…………………….
enter their appearance to the suit of the Appellant within 35 days of the dispatch of the processes by DHL Courier had been discharged or vacated, and they so remain. The subsistence and bindingness of the Ruling of the trial Court decision delivered on 20th December, 2005 completely knock out the bases the Appellant stood to apply for final judgment in his suit against the Respondent. The Appellant could only apply for final judgment upon the service of the originating process, the Writ of Summons specially endorsed with the Statement of Claim (as amended), on the Respondents. The Appellant seems to concede this point. He submitted, correctly, on the authority of OKAFOR v. IGBO (1991) 8 NWLR (Pt 210) 476, that the issuance, and service of the Writ of Summons on the defendant, are the conditions precedent to the exercise of the jurisdiction which the trial Court may have over the subject matter of the action against the defendant; and that where there is evidence that service was not effected on the defendant any judgment emanating from such proceedings is a nullity. In my firm view, the trial was right when it held that, having set aside the leave it granted to the Appellant to serve the Writ of Summons and the Amended Statement of Claim on the Respondents by substituted means (through DHL Courier) and having set aside the purported service on the Respondent of the Writ of Summons and the Amended Statement of Claim by DHL Courier it was “unable to enter final judgment for the plaintiff (Appellant) against the Defendants (Respondents)” as its own order setting aside the order for service of the processes, and the service of the processes, on the Respondents out of jurisdiction had not been set aside. The lower Court on 19th March, 2009 finding the Ruling of the trial Court delivered on 5th June, 2006 “unimpeachable” held that there was “no reason to disturb same.” I cannot agree more. The lower Court cannot be faulted on this.
As I demonstrated in the foregoing reasons, there is clearly no substance in this Appeal and it is accordingly dismissed in its entirety. Parties shall bear their respective costs.
MARY UKAEGO PETER-ODILI, J.S.C.: I am at one with my learned brother, Ejembi Eko JSC in the dismissal of this appeal and the reasoning from which the decision came about.
To register that support I shall make some comments.
This is an Appeal by the appellant/plaintiff against the judgment of the Court of Appeal, Lagos Division or Lower Court or Court below, Coram: O. Adamu JCA, P.A. Galinje JCA (as he then was) and D. Jauro JCA delivered on the 19th March, 2009 affirming the decision of Mustapha J (as he then was) of the Federal High Court, Lagos wherein he entered a default judgment in favour of the plaintiff/appellant against the respondent for non-appearance and failure to file a statement of defence.
The background facts of this Appeal are well captured in the leading judgment and I see no need to repeat them unless the occasion warrants a reference to any part of those facts.
At the hearing on the 19th February, 2018, learned counsel for the appellant, Chief F. O. Offiah adopted its brief of argument filed on 28th May, 2010 and deemed filed on 28th May 2010 and in it were raised four issues for determination as follows:-
1. Whether the Court of Appeal misdirected itself and came to a wrong conclusion in sustaining the respondent’s Preliminary Objection to the appellants Appeal on the ground that the appellant did not Appeal against the Federal High Court Ruling of the 20th December, 2005.
2. Whether the Court of Appeal erred in law in holding that proceedings which are nullity could not, unless appealed against, be set aside by the lower Court and in failing to declare as a nullity the Respondents’ motion dated the 12th April, 2005 and filed before the writ of Summons was served on the Respondents, together with the ensuing proceedings before the Federal High Court.
3. Whether the Court of Appeal erred in law in failing to enter judgment in favour of the Appellant when it was patently clear that the Respondent had no intention of entering an appearance to the suit or filing a Defence thereto.
4. Whether the Court of Appeal embarked on an irrelevant consideration of the law relating to service of a writ of summons in admiralty proceedings.
Clement Onwuenwunor Esq., learned counsel for the appellant adopted the brief of argument filed on 13th August 2014 and deemed on 19th February 2018. He equally adopted the issues as distilled by the appellant which I am going to utilise.
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ISSUES ONE & TWO
1. Whether the Court of Appeal misdirected itself and came to a wrong conclusion in sustaining the respondent’s Preliminary Objection to the appellants Appeal on the ground that the appellant did not Appeal against the Federal High Court Ruling of the 20th December, 2005.
2. Whether the Court of Appeal erred in law in holding that proceedings which are nullity could not, unless Appealed against, be set aside by the lower Court and in failing to declare as a nullity the Respondents’ motion dated the 12th April, 2005 and filed before the writ of Summons was served on the Respondents, together with the ensuing proceedings before the Federal High Court.
Learned counsel for the appellant contended that the Court of Appeal failed to appreciate that the complaint of the Appellant before it related to the failure of the Federal High Court when invited to do so by the appellant in its submission leading to the Ruling of the 5th June 2006 to set aside its ruling which was a nullity, and not against the substance of the said Ruling.
That the Court below failed to address either question in its judgment which are the issues now before this Court. That in order to meet the end of justice, the respondents’ application of 12th April 2005 and ensuring proceedings leading to the trial Court’s decision of 20th December 2005 which the trial Court entertained with out jurisdiction amounted to a nullity and accordingly should have been set aside by the trial Court.
Chief Offiah of counsel for the appellant further argued that service of a writ of summons is very fundamental and that no suit can be determined by a Court unless and until the summons in relation to that suit has been served on the defendant. He cited Okafor v Igbo (1991) 8 NWLR (Pt.210) 476.
That where as in this case the evidence shows that service was not affected on the appropriate party any judgment emanating from such proceedings is a nullity and the Court should have terminated the proceedings upon discovery of that fundamental defect since at that point the Court is well aware that it lack jurisdiction to proceed. He relied on Abubakar v J.M.D.B (1997) 10 NWLR (Pt.524) 242 at 245; National Bank of Nigeria v Guthrie(1993) 3 NWLR (Pt.284) 643 at 659, Kennedy v INEC (2009) 1 NWLR (Pt.1123) 614 at 635.
For the appellant it was submitted that if the respondents were eager to pursue the action timeously they would have followed the regular procedure of entertaining conditional appearance after being served with the processes. That instead the respondents pursued an incomprehensible procedure by filing their application without waiting to be served with the writ of summons and then rejecting service when they were finally served. That if the Court of Appeal had considered this important issue, the appellant’s ground 2 in the Notice of Appeal and issue 2 would not have been struck out by the Court.
Learned Counsel for the respondents, Clement Onwuenwunor Esq submitted that the relief 4 of the appellant’s Notice of Appeal stated clearly for an order of Court allowing the Appeal and entering judgment against the respondents.
That the appellant is bound by the relief in its Notice of Appeal and cannot turn around at the Supreme Court to argue that its Appeal at the Court below was not against the substance of the Ruling of 5th June 2006 dismissing its application for default judgment. He cited Suberu v State (2010) 8 NWLR (Pt.1197) 586 at 612.
He stated that so long as the appellant did not Appeal against the Ruling of the trial Court dated 20th December 2005, the Court below could not have assumed jurisdiction to entertain the appellant’s unnecessary questions on the said Ruling which was not the subject matter of the Appeal before it. He referred to MC Investment Ltd v C. I. & C. M. Ltd (2012) 12 NWLR (Pt.1313) 17; S.P.D.C. (Nig) Ltd v X. M Fed (2006) 16 NWLR (Pt.1004) 189; Owie v Ighiwi (2005) 5 NWLR (Pt.917) 184; M.B.N Plc v Nwobodo (2005) 14 NWLR (Pt.945) 379.
Learned counsel for the respondents submitted that the appellant’s Motion on Notice dated and filed on 8th December, 2005 and its affidavit upon which the ruling appealed against was based, did not raise any issue relating to or concerning the ruling of the learned trial judge delivered on 20th December, 2005 now sought to be set aside. That the appellant is bound by the terms of the prayer of that motion and cannot change the tone of the said prayers at this stage. He cited Okoya v Santilli (1990) 2 NWLR (Pt.131) 172; Ojoh v Kamalu (2005) 18 NWLR (Pt.958) 523 etc.
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The crux of the appellant’s concern herein is that the Court of Appeal failed to appreciate that the complaint of the appellant before it related to the failure of the Federal High Court, when invited to do so by the appellant in its submissions leading to the Ruling of the 5th June 2006 to set aside the Ruling which was a nullity and not against the substance of the said Ruling.
The stance of the respondent is that the appellant being bound by the relief sought in its Notice of Appeal, cannot turn around at the Supreme Court to argue that its Appeal at the Court below was not against the substance of the Ruling of 5th of June, 2006 dismissing its application for default judgment.
Having regard to these contending divergent positions on either side, one is reminded that it is a rudimentary principle of procedure that parties have to be consistent in their case at the trial Court on Appeal to the Court of Appeal and up to the Apex Court. No party is allowed to approbate and reprobate over the same issue. This consistency has to be from first instance to the very end as an Appeal does not change the nature or structure of the dispute between parties. This is because an appeal does not lead to a discolouration of the matter at the beginning as the complaint remains what it is at every stage up to the conclusion of the appeal at the trial Court or Court of Appeal or Supreme Court. See Suberu v State (2010) 8 NWLR (Pt.1197) 586 at 618; Akpa v Itodo (1997) 5 NWLR (Pt.506) 589; Ngige v Obi (2006) 14 NWLR (Pt.999) 1, Oredoyin v Arowolo (1989) 4 NWLR (Pt.114) 172; Ajide v Kelani (1985) 3 NWLR (Pt.12) 248; Agidigbi v Agidigbi & 2 Ors (1996) 6 NWLR (Pt.454) 300.
It is with the guiding principle above stated to the effect that an appeal is not a licence to change the course of the dispute or nature or substance but is a continuum from inception of the case from trial to the very end at the last appeal. It is on that note that I shall refer to what the Court below stated at page 302 of the Record of Appeal, thus:-
“On the 20th of December, 2005, the learned trial judge in a considered ruling granted the prayers contained in the respondents’ application of 12th April, 2005 including orders for service of the writ of summons and the amended statement of claim. There is no Appeal against this ruling. Thereafter the respondent filed a Preliminary Objection to the applicant’s application for judgment in default of appearance. The Preliminary Objection is dated 16th of February, 2006 and filed on 20th February, 2006. The appellant’s motion for judgment and Preliminary Objection were heard together and this resulted in the ruling of 5th June, 2006 against which this Appeal lies.
The decision of 20th December, 2005 which set aside all the processes that were ordered to be served on the respondents has not been set aside. It follows therefore that the processes are deemed to have been withdrawn. There was therefore no service. Any further service of these process which were delivered on the 20th December, 2005 is set aside.
The appellant was aware of this ruling (of the 20th December, 2005) and as such it was bound to submit itself to the decision of the lower Court, instead of playing hide and seek game. The only way out for the Appellant was to seek for a reversal of the ruling of the 20th December, 2005 through appeal.”
The Court below stated further, viz:-
“Learned counsel for the appellant posed a few questions which I find interesting. The first question is whether a judge who has made an order for service of Court’s proceedings on the Respondents by courier and at the same time Ordering them to put up appearance within 35 days, can turn around to set aside the order pursuant to an application made by a party who has not been served with the writ, and the learned judge based his ruling on factual allegations contained in the affidavit filed in support of the said incompetent motion?
The 2nd question is if the motion filed by the respondents on the 12th April, 2005 seeking to set aside the service of the writ was incompetent, since it was filed before service of the writ, can the learned judge entertain the said motion and rely on averments in the affidavit in support of same to annul retroactively the orders which he had previously made and which had been carried out”.
What the Court of Appeal did and why are well captured as that Court went along its summation as follows:-
“The two questions which I said are interesting and I reproduced elsewhere in this judgment are questions which would have been subject to determination on appeal. Unfortunately, those questions are directed at the respondents’ application filed on the 12th of April,
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2003 which sought to set aside the services of the writ of summons and the amended statement of claim.
There is no appeal against the ruling of the lower Court on that application. The appellant refers to that application as incompetent because it was not filed before the services of the writ of summons.
Is the appellant competent to declare a process pending before the Court incompetent? I do not think so. Only a Court of competent jurisdiction can declare a process or a decision of a Court incompetent.”
This Court almost in a similar circumstance in MC Investment v C. L & C. M Ltd (2012) 12 NWLR (pt.1313) at 17 paragraph C held decisively as follows:
“Therefore, there being no appeal against the judgment of the trial Court on the undefended suit on the merits in the absence of any defence to the suit, the judgment of 19th July, 1996 remains valid and cannot be disturbed on appeal.” See also Emeka v Okadigbo (2012) 18 NWLR (Pt.1331)55.
What I see before this Court as background is appellant’s application of 8th December, 2005 which gave rise to the Ruling of 5th June, 2006 and which simply was to “enter trial judgment in default of appearance” and nothing else.
A scenario akin to the present showed up in the case of SPDC (Nig) Ltd v X. M. Fed (2006) 16 NWLR (Pt.1004) 189. In that case a ruling was delivered by the Court of first instance against the appellants on 12th June, 1996. The same appellant filed an application which was dismissed by the same trial Court in its ruling delivered on the 8th October, 1998 on the grounds that the application was similar to the one which gave rise to the ruling of June 12, 1996. The appellant therein being aggrieved with the ruling of 8th October, 1998 Appealed against it to the Court of Appeal against the earlier ruling of the Court delivered on 12 June, 1996. The Court of Appeal struck out the appellant’s issue which was a challenge or question to the ruling of 12th June, 1996 on the ground that the appellant had not Appealed against the ruling of 12th June, 1996 and went ahead to dismiss the Appeal. A further Appeal to the Supreme Court was also dismissed on the same point which I shall refer to hereunder, viz:-
I have earlier in this judgment gone through in some details what transpired in the “history” of the subject matter of this appeal. For the avoidance of doubt, the Appeal to the Court below was against the ruling of the trial Court of 8th October, 1998 and not that of 12th June, 1996. I have earlier in this judgment reproduced part of the pronouncement of this Court below at page 160 in particular in support of this that rather than the appellants appealing against the ruling of 12th June, 1996 laboured in vain, so to speak, and proceeded to appeal against that of 8th October, 1998 which was a ruling that the trial Court refused to revisit a subject matter of the latter application of the appellants which it had already decided and ruled upon. Period! In other words until the decision of the trial Court of 12th June, 1996 is appealed against and set aside by the Court below, that decision subsists and is binding on the appellants in particular or the parties in general. Surely, the Court below was justified and right in my respectful view, in its holding that the trial Court’s decision of 12th June, 1996 operated as an estoppel to bar the appellants from making the application of 2nd January, 1997 which gave rise to the ruling of 8th October, 1998. I so hold.
Per Ogbuagu JSC at Page 199.
The same route was followed by this Court in the following cases among others, Viz:- Owie v Ighiwi (2005) 5 NWLR (Pt.917)184; M.B.N. Plc v Nwobodo (2005) 14 NWLR (Pt.945) 379.
For effect I shall quote the prayer or relief of the appellant on the said motion paper thus:-
“An order granting leave to the Plaintiff/Applicant herein to enter final judgment as per the writ of summons and the Amended Statement of claim in this suit against the Defendant/Respondents herein in default of appearance.
It is now trite that a case of a party is considered and granted on the relief he has asked for as the other party or opponent is entitled to know the case being presented and which he has to meet. This is an elementary but rather a fundamental principle of the adversarial system of adjudication that impels an applicant to be bound by the prayers in his motion. Therefore a party who has come before the Court seeking a certain known relief cannot change that case at will in each Court as he goes along whether at the trial or on appeal. See Okoya v Santilli (1990) 2 NWLR (Pt.131) 172;
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A.C.B. Ltd v A.G. Northern Nigeria (1969) NMLR 231; Ojoh v Kamalu (2005) 18 NWLR (Pt.958) 523; Zaboley Int’l Ltd v Omogbehin (2005) 17 NWLR (Pt.953) 200.
Indeed, the argument of the respondents captures what is on ground, which is, that the appellant’s Appeal is against one Ruling and in the same breath persuading the appellate Court to set aside another distinct and separate Ruling not appealed against. A presentation such as stated above made a showing in the case of Tomtec (Nig) Ltd v FHA (2009) 18 NWLR (Pt.1173) 358 at 375 and this Court deprecating that approach stated thus:-
“This is obviously erroneous. A party who disagrees with the decision of a Court, has the right to appeal against same either of right or with the leave of Court, except the decision is that of this Court, which is considered final; it is wrong to challenge the decision of a Court of law under the guise of a Preliminary Objection, whether written or oral since the lower Court, by striking out motion of 13th October, 2003, became functus officio and cannot entertain any further proceedings in respect of the appropriateness of the order made therein. The only Court competent to do so is an appellate Court which can only review the decision upon a proper appeal against same.
Appellant could have appealed against the above decision of the lower Court under either Section 233(2) or 233(3) of the 1999 Constitution depending on whether his appeal falls within the category of appeals as of right or with leave of the Courts but he did not utilize that opportunity. It is settled law that where a party fails, or decides not to appeal against any decision of a Court of law, he is deemed to have accepted that decision and is consequently bound by it.
It is in appreciation of the law and practice that the Court below in this instant case held as follows:-
“The respondent promptly filed an application on the 12th of April, 2005 praying the Court to set aside its order of service of processes which was made on the 8th April, 2005 because the 1st respondent had left Nigerian territorial waters before the said order. Argument on this application was concluded on the 15th of November, 2005 and ruling was reserved, Despite the fact that a ruling on the application to set aside the order of service was pending, learned senior counsel for the appellant filed a Motion of Notice dated 8th December, 2005 praying for a final judgment in default of appearance.
On the 20th of December, 2005, the learned trial judge in a considered ruling granted the prayers contained in the respondents’ application of 12th April, 2005 and set aside all the orders he made on the 8th of April, 2005 including orders for service of the writ of summons and the amended statement of claim. There is no appeal against this ruling. Thereafter the respondent filed a Preliminary objection to the appellant’s application for judgment in default of appearance. The preliminary objection is dated 16th of February, 2006 and filed on the 20th of February, 2006. The appellant’s motion for judgment and the preliminary objection were heard together and this resulted in the ruling of 5th June, 2006 against which this Appeal lies.”
Clearly the Court of Appeal was on solid ground when it struck out ground 2 of the Notice of Appeal and the issue 2 which arose from that ground. What the Court below did cannot be faulted and so issues 1 and 2 are resolved against the appellant.
ISSUE No 3
Whether the Court of Appeal was right in failing to enter trial judgment in favour of the appellant.
Learned counsel for the appellant submitted that the sequence of events in the case leads to inescapable conclusion that judgment ought to have been entered in favour of the appellants. That the writ had been issued on the 17th December, 2002, it was not until after the order of the trial Court on the 8th April 2005, that the writ of summons and other processes were duly served on the respondents on 5th May, 2005 through DHL, Courier Service outside the jurisdiction of the Court. The respondents were ordered to enter appearance within 35 days of date of dispatch of the process and they failed to do so rather they returned the same to the Chief Registrar of the Federal High Court, Lagos through a courier service (TNT). That the respondent thereby lost the right of being heard having been given the opportunity. He referred to the case of Dickson v Okoi (2003) 16 NWLR (Pt.846) 397 at 411-412.
In response, learned counsel for the respondent contended that the appellant made no reference to the fact that the ruling on the respondents application to
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set aside the order of service made against them pending before it proceeded to file its application for default judgment against the respondents. That the decision of the learned trial judge delivered on 20th December, 2005 which had not been appealed against and set aside is binding on the appellant, the respondents and even the trial judge and the said decision constituted and operated as issue estoppel in this appeal. He cited Akinyemi v Soyanwo (2006) 13 NWLR (1998) 496.
A look at the proceedings before the Court of Appeal leading to the ruling of 5th June, 2006 the subject matter of this Appeal would show the following as bullet points, viz:-
i. That the writ of summons filed by the appellant on 17th December, 2002 was issued when the respondents were outside the jurisdiction of the Federal High Court.
ii. That as at 8th April, 2005, when learned trial judge made the orders, which were subsequently discharged on 20th December, 2005, the writ of summons has not been served on the respondents.
iii. That when the learned trial judge made certain orders on 8th April, 2005 which included an order for service on respondents and an order amending the appellant’s statement of claim, the respondent promptly filed an application on 12th April, 2005 to set aside all the orders of 8th April, 2005 which was granted.
iv. That while the ruling of the learned trial judge on the respondent’s application of 12th April, 2005 was being awaited after arguments had been concluded on the said application on 15th November, 2005 and a date fixed for ruling, the learned senior counsel for the appellant optimistically filed a Motion on Notice dated 8th November, 2005 for final judgment in default of appearance.
v. That the ruling of the learned trial judge delivered on 20th December, 2005 however completely vitiated the basis of the appellant’s motion of 8th December, 2005.
vi. That the appellant did not and has not appealed against the ruling of the learned trial judge delivered on 20th December, 2005 till date.
vii. That when the appellant’s counsel insisted that he would argue the appellant’s Motion on Notice of 8th December, 2005 and the respondents’ Notice of Preliminary Objection filed on 20th February, 2006 be argued together and they were so argued together.
viii. That the learned trial judge ordered that both the appellant’s Motion on Notice filed on 8th December, 2005 and the respondents’ Notice of Preliminary Objection filed on the 20th February, 2006 be argued together and they were so argued together.
ix. That the learned trial judge in a considered ruling delivered on 5th June, 2006 sustained the respondents’ Preliminary Objection but dismissed the appellants’ Motion for judgment on the ground that by its ruling of 20th December, 2005, the purported service on the respondents had been set aside and the Amended Statement of Claim on which judgment is sought has also been set aside.
From the foregoing facts, it is clearly indisputable that the appellant’s issue 3 for determination is thoroughly baseless and fundamentally defective.
What obtains when there is a subsisting order of a Court of competent jurisdiction is well stated in the case ofAkinyemi v Soyanwo (2006) 13 NWLR (Pt.998) 496 per Tabai JSC at page 514.
“it is a settled principle of law that every party to a suit, and indeed every citizen, has an obligation to obey the subsisting Court decision or order in the suit unless and until it is set aside. And the party’s obligation to obey the decision is without regard to his perception about the irregularity or illegality of the decision as long as it subsists. See Odogwu v Odogwu (1992) 2 NWLR (Pt.225) 539; Nigerian Army v Gloria Mowarin (1992) 2 NWLR (Pt.235) 345. The appellant as a party in the case cannot claim ignorance of this decision of the Court of Appeal on the 15th July, 1999. He became aware or deemed to have become aware on the 15th July, 1999 that the Court decided to keep the running of the 45 days in abeyance during the pendency of the motion for variation from the 17th March, 1999 to 15th July, 1999″.
The reality that cannot be wished away in the light of the facts available and the grinding principles is that the learned trial judge in his decision declining jurisdiction and affirmed by the Court of Appeal on the 1st respondent, M. T. Tabora, a vessel on the ground that the time the appellant commenced its action on the 17th November, 2002, the 1st respondent was not within the territorial waters of Nigeria and therefore out of the jurisdiction of the Court and so the trial
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Court could not competently enter judgment against it.
The situation makes baseless the invitation by the appellant that this Court exercise its powers under Section 22 of the Supreme Court Act to enter judgment against the respondents since the appellant had not appealed against the set aside orders for service made against the respondents, which brought to an end the issue which remains subsisting and valid for all time since it is believed to have been accepted by the appellant. The issue is resolved against the appellant.
ISSUE NO 4
Whether the Court of Appeal was right in embarking on a consideration of the law relating to service of a writ of summons in admiralty proceedings.
Learned counsel for the appellant submitted that the Court of Appeal misunderstood the issue relating to service as what appellant was seeking was to re-activate the dormant suit. That the order of the trial Court made on the 8th April, 2005 was merely to serve the Writ of Summons and Amended statement of claim outside the jurisdiction and was a matter in personam and did not require the presence of the vessel within the jurisdiction to invoke the Admiralty jurisdiction of the Court. He cited GMBH v Rivways Lines Ltd NSC. Vol vii 354; (1998) 5 NWLR (Pt.549) 265 at 281.
Learned counsel for the respondents submitted that the application of 12th April, 2005 praying to set aside the order of 8th April, 2005 was substantially based on the fact that the respondents are not within the jurisdiction of the Federal High Court, Lagos and that the trial Court’s order of 8th April, 2005 was set aside on the 20th December, 2005 and appellant did not Appeal against the said order.
That the ruling of trial Court delivered on 5th June, 2006 and the Court of Appeal affirmation dated 19th March, 2009 qualify as concurrent findings of fact which were not perverse cannot be interfered with by the Supreme Court. He cited Military Governor, Lagos State v Adeyiga (2012) 5 NWLR (Pt.1293) 291 at 334; Ucha v Elechi (2012) 13 NWLR (Pt.1317) 330 at 362.
The Court of Appeal had ruled thus:-
“Indeed, I agree with the learned counsel for the respondents that in admiralty action, the presence of the vessel within the jurisdiction of the Court is the foundation of the Court’s admiralty jurisdiction over it. At the time the lower Court ordered for service on the 1st respondent, the 1st respondent was not within the jurisdiction. That order was therefore a nullity. The lower Court therefore, has power to set aside its order which was made without jurisdiction.”
I agree with learned counsel for the respondents that the issue of service of a writ of summons in admiralty proceedings is crucial to this appeal as no Court can enter default judgment against anyone without proof of service of the originating processes. That is the crux of the matter in this appeal.
For clarity I shall refer to pages 306-307 of the Record for what the Court of Appeal said, viz:-
“I also agree that apart from the appellant’s failure to appeal against the ruling of learned trial judge delivered on 20th December, 2005 which set aside the earlier orders of the Court granting leave to the appellant to serve the writ and statement of claim on the respondent and for the latter to enter appearance within 35 days; the said appellant also took risk or acted deliberately in bringing his present application for default judgment knowing fully that there was a pending challenge against the competence of the Court to enter its previous ruling of 8th April 2005 (ex-parte). Instead of appealing against the said ruling or applying to set it aside, the appellant surprisingly brought another application on 8th December, 2005 for the trial Court to enter a default (or summary) judgment in its favour, the refusal of which is the subject matter of this present appeal. Thus the appellant should have waited for the ruling on the application to set aside the earlier orders of the Court (ex-parte) before making an application in the interim for the entry of summary or default judgment. His present action or appeal in disregard of earlier ruling of the Court setting aside the writ and other processes for lack of jurisdiction was not in good faith as it looks as if he is enticing or dragging the Court to give a judgment in the case in which he knows that it had no jurisdiction to do so.
For a fact what is before the Supreme Court is an appeal based on concurrent findings of facts of two Courts below and I shall refer to the attitude of this Court to such presentations.
In Military Governor, Lagos State v Adeyiga (2012) 5 NWLR (Pt.1293) 291 at 334 paras
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F-H, the Supreme Court held as follows:
“In the instant Appeal at this juncture, there are two concurrent findings of fact of the lower Courts. The Supreme Court will not ordinary disturb concurrent finding fact made by the High Court and the Court of Appeal unless a substantial error apparent on the face of the record of proceedings is shown or when such findings are perverse. On going through the record, It is my conclusion that the Court has no duty to interfere with the decision of the two lower Courts.
Akeredolu v Akinremi (No.3) (1989) 3 NWLR (Pt.108) pg. 164; Ibodo v Enarofia (1980) 5-7 SC Pg.42; Ige v Olunloyo(1984) 1 SCNLR Pg.158; Durosaro v Ayorinde (2005) 8 NWLR (Pt.927) Pg.407.
In Ucha v Elechi (2012) 13 NWLR (Pt.1317) 330 at 362 paras D-G, this Court further held as follows:-
This is a case of concurrent findings of fact. The Supreme Court will not interfere with the concurrent findings of fact by the trial Court and the Court of Appeal where there is sufficient evidence in support of such findings and where no substantial error is apparent on the record such as miscarriage of justice and violation of some principle of law or procedure. See Ogunbiyi v Adewunmi (1988) 5 NWLR (Pt.93) Pg.215; Shipcare Nig Ltd v The Owners of the M/V Fortunato & Anor (2011) 2-3 SC (Pt.11) p.1; (2011) 7 NWLR (Pt.1246) 205; Ezeonwu v Onyechi (1996) 3 NWLR (Pt.438) p.499″.
Being well advised in the policy Statements emanating from this Court as adumbrated in the cases above cited and quoted extensively, there is no basis for any interference with what the two Courts below did in their findings and conclusions which came from sound application of the law within the context of the facts available to them. Therefore treading the same path as the reasoning in the lead judgment this appeal lacks merits and I dismiss it.
I abide by the consequential orders made.
MUSA DATTIJO MUHAMMAD, J.S.C.: Having read in draft the lead judgment of my learned brother EJEMBI EKO JSC just delivered and being in complete agreement with the reasoning and Conclusion therein, I adopt same as mine in dismissing the unmeritorious Appeal. I abide by the consequential orders made in the said lead judgment.
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN, J.S.C.: I have had the benefit of reading before now, a copy of the well considered judgment of my learned brother, Ejembi Eko, JSC just delivered. I agree with the sound reasoning and conclusion that this Appeal is devoid of merit.
The background facts giving rise to this Appeal have been well summarised in the lead judgment. I shall not repeat the exercise here. Suffice it to say that the crux of the issue in contention between the parties was well captured by the lower Court when it held thus at pages 301 – 303 of the record:
“The appellant’s application for default judgment filed on the 8th of December 2005 was essentially based on the order of the lower Court made on 8th of April 2005, wherein the writs of summons and the appellant’s Amended statement of claim were directed to be served on the respondents.
The respondents promptly filed an application on the 12th of April 2005 praying the Court to set aside its order of service of processes which was made on the 8th of April 2005 because the 1st respondent had left Nigerian territorial waters before the said order. Argument on this application was concluded on the 15th of November 2005 and ruling was so reserved, Despite the fact that a ruling on the application to set aside the order of service was Pending, learned senior counsel for the appellant filed a motion on notice dated 8th December, 2005 praying for a final judgment in default of appearance. On the 20th of December 2005, the learned trial Judge in a considered ruling granted the prayers contained in the respondents’ application of 12th April 2005 and set aside all the orders he made on the 8th of April 2005 including orders for service of the writ of summons and the amended statement of claim. There is no appeal against this ruling. Thereafter the respondents filed a preliminary objection to the appellant’s application for judgment in default of appearance. The Preliminary objection is dated 16th of February 2006 and filed on the 20th of February 2006. The appellant???s motion for judgment and the preliminary objection were heard together and this resulted in the ruling of 5th June 2006 against which this appeal lies.
The decision of 20th December 2005 which set aside all the processes that were ordered to be served on the
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respondents has not been set aside. It follows therefore that the processes are deemed to have been withdrawn. There was therefore no service. Any further service of these processes can only be possible if the decision of the lower Court which was delivered on the 20th of December 2005 is set aside.
The appellant was aware of this ruling as such it was bound to submit itself to the decision of the lower Court, instead of playing hide and seek game. The only way out for the appellant was to seek for a reversal of the ruling of 20th December 2005 through appeal. Since that ruling subsists, condition for judgment in the appellant’s claims does not exist.”
On 8/5/2005, the learned trial Judge granted the prayers sought by the plaintiff/appellant vide its motion ex-parte filed on 23/3/2005. The Court ordered as follows:
“1. That leave is granted to the plaintiff/applicant to serve the Court processes on the 1st, 2nd, 3rd and 4th defendants in this action out of this Court by DHL to wit NORTHERN FOX SHIPPING P.O. BOX 3657, WILLEMSTAD CURACAO WEST INDIES and HANSA HUIS ERNEST VAN DIJCKAA I 10, BUS B 2000 ANTWERP, BELGIUM.10.
2. That the 1st, 2nd, 3rd and 4th defendants enter appearance within 35 days of the date of the dispatch of the processes herein by DHL Courier.
3. That leave is granted to the plaintiff to amend its statement of claim in the terms of the proposed Amended Statement of Claim attached to this application as Exhibit MUN-1.
4. That the names of the 5th and 6th defendants are hereby struck out from the suit.
5. That the return date is 23rd May 2005.
The said orders were discharged by the same Court in a ruling delivered on 20/12/2006. The service of the Amended Statement of Claim on the defendants/respondents through DHL to their address at Belgium was also set aside.
The net effect of the ruling therefore is that there was no service of any of the originating processes on the respondents. Curiously and without waiting for the ruling to be delivered, the appellant on 8/12/2005 filed a motion for default judgment against the respondents. The respondents reacted by filing a notice of preliminary objection to the motion on the following grounds:
1. “This Honourable Court has no jurisdiction to entertain the plaintiff/respondents’ application filed on 8th December 2005.
2. On 20th December 2005 this Honourable Court held that it has no jurisdiction over the 1st defendant.
3. The order of this Honourable Court made on 8th April 2005 wherein the plaintiff/respondent was allowed to amend its writ of summons and statement of claim and to serve the defendants/applicants by substituted means were discharges/set aside.
4. There is no service of any writ of summons or statement of claim in this suit on the defendants/ applicants.
5. There is no Amended Statement of Claim subsisting before this Court.
The appellant’s motion and the respondents’ preliminary objection were heard together. The Court upheld the preliminary objection and dismissed the application for judgment in the following terms at pages 129-130 of the record:
“This Court having in its ruling of 20th December 2005 held that its jurisdiction cannot be invoked IN REM against MT TABORA i.e. 1st defendant and having set aside the leave granted to the plaintiff to amend its Statement of Claim upon which the plaintiffs motion is grounded and having set aside the purported service by DHL of the Amended Statement of Claim on the defendants out of jurisdiction of this Court, I am unable to enter final judgment against the defendants on a writ of summons which has not been served and an Amended Statement of Claim which has been set aside. The defendants’ notice of Preliminary objection is upheld. The plaintiffs motion on notice dated 8th December 2005 is hereby dismissed.”
I agree entirely with the Court below that in the absence of an Appeal against the ruling of the trial Court delivered on 20/12/2005, the orders made therein are valid and subsisting. The foundation of the appellant’s motion for default judgment was the existence of a competent suit with parties properly before the Court. The service of originating processes on parties who ought to be served is indispensable in any adjudication. Failure to serve a process where service is required is so fundamental that the party not served and against whom any order is made in his absence is entitled to have the order set aside on the ground that a condition precedent to the exercise of jurisdiction by the Court has not been fulfilled. See: Obimonure Vs Erinosho (1966) 1 ALL NLR 250;
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Kida Vs Ogunmola (2006) 6 SCNJ 165 @ 174; National Bank of Nigeria Ltd. Vs Guthrie Nig. Ltd. & Anor. (1993) 3 NWLR (Pt.284) 643; Ihedioha & Anor. Vs Okorocha & Ors. (2015) LPELR-40837 (SC) @ 69 – 70 B -A.
The premise of an application for a default judgment is that the person against whom the order is sought has been duly served with the writ of summons and statement of claim and has failed to respond or file a defence. As service of those processes on the respondents and the order granting an Amendment of the statement of claim had been set aside, the application for default judgment had no leg to stand on.
The appellant’s failure to Appeal against the ruling of 20/12/2005 was fatal. I am of the considered view that the lower Court was right when it upheld the respondents’ preliminary objection to the appellant’s motion for default judgment.
For the foregoing and the more detailed reasons advanced in the lead judgment, I find this Appeal to be unmeritorious. It is accordingly dismissed. The judgment of the lower Court is affirmed. I abide by the order on costs as contained in the lead judgment.
CHIMA CENTUS NWEZE, J.S.C.: My Lord, Eko, JSC, obliged me with the draft of the leading judgment delivered now. I agree with His Lordship that, being unmeritorious, this Appeal should be dismissed.
Appeal dismissed.
Appearances
Chief F. O. Offia with him, Victor Kanu, Esq.-For Appellant
Appearances
GLOBAL WEST VESSEL SPECIALIST NIGERIA LIMITED v. NIGERIA NLG LIMITED & ANOR
On Friday, the 20th day of January, 2017
SC.544/2014Before Their Lordships
OLUKAYODE ARIWOOLA Justice of The Supreme Court of Nigeria
KUMAI BAYANG AKA’AHS Justice of The Supreme Court of Nigeria
CHIMA CENTUS NWEZE Justice of The Supreme Court of Nigeria
AMIRU SANUSI Justice of The Supreme Court of Nigeria
Between
Before Their Lordships
OLUKAYODE ARIWOOLA Justice of The Supreme Court of Nigeria
KUMAI BAYANG AKA’AHS Justice of The Supreme Court of Nigeria
CHIMA CENTUS NWEZE Justice of The Supreme Court of Nigeria
AMIRU SANUSI Justice of The Supreme Court of Nigeria
Between
GLOBAL WEST VESSEL SPECIALIST NIG LTD – Appellant
AND
1. NIGERIA NLG LTD
2. ATTORNEY GENERAL OF THE FEDERATION – Respondents
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OLUKAYODE ARIWOOLA, J.S.C. (Delivering the Leading Judgment): This is an appeal against the judgment of the Court of Appeal, Lagos Division, delivered on 11th August, 2014 in Appeal No. CA/L/849B/2013 wherein the appeal was, inter alia, struck-out.
1. Nigeria LNG Act;
2. The Nigerian Maritime Administration and Safety Agency (NIMASA) Act;
3. The Coastal and Inland Shipping (Cabotage) Act, Cap. C51 LFN, 2004;
4. The Marine Environmental (Sea Protection Levy) Regulations, 2012 and;
5. The Merchant Shipping (Ship Generated Marine Waste Reception Facilities) Regulations, 2012.
The plaintiff also challenged the blockage of its vessels and the prevention of same from accessing the Bonny Channel by a vessel with men in Military uniform on board, identified as representatives of Global West etc.
The plaintiff further filed a Motion exparte along with a Notice of Motion dated 17th June, 2013 seeking various interim and interlocutory injunctive reliefs respectively against the Federal Government of Nigeria and its agents and Global West. The trial Court on 18th June, 2013 granted all the interim reliefs sought.
The 2nd defendant – Global West filed a Notice of Preliminary Objection dated 24th June, 2013, challenging the jurisdiction of the trial Court to entertain the suit on grounds of misjoinder and non-joinder of a necessary party and consequently sought an order of the trial Court to strike out the suit for lack of jurisdiction and or strike out its name from the suit for mis joinder. Global West also filed an application praying the trial Court to discharge the order of interim injunction earlier made against it.
The trial Court on Friday 12th July, 2013 dismissed the 2nd defendant’s Preliminary Objection together with the application seeking to discharge the Order of interim injunction granted against it.
2nd defendant was dissatisfied with the ruling of the trial Federal High Court, hence it appealed by the Notice of Appeal dated 23rd July, 2013 to the Court below.
By a notice of Preliminary Objection, dated 28th March, 2014, the plaintiff now 1st respondent objected to the competence of the aforementioned Notice of Appeal on the grounds, inter-alia, that – leave of the trial Court or of the Court below was not sought and obtained before the said Notice of Appeal was filed in accordance with the provisions of the Constitution of the Federal Republic of Nigeria, 1999 as amended.
On 18th June, 2014, the Court below heard the substantive appeal along with arguments on the Preliminary Objection and in its considered judgment delivered on 11th August upheld the said objection to the effect that the Notice of Appeal filed by the appellant was incompetent having been filed without leave of either the trial Court or of the Court below. The Court below consequently struck out the Notice of Appeal and thereby affirmed the ruling of the trial Court.
Further dissatisfied with the judgment of the Court below, led to the instant appeal on eight grounds vide the Notice of Appeal filed on 22nd August, 2014.
The appellant and 1st respondent filed and exchanged briefs of argument.
Appellant’s brief of argument filed on 8th April, 2015 was deemed properly filed and served on 15th March, 2016. The 1st respondent filed its brief of argument within time on 19th April, 2016. It is noteworthy that the 2nd respondent – Attorney General of the Federation did not file any brief of argument or any other process in this appeal.
When this appeal came up for hearing on 24th October, 2016, both the 1st and 2nd respondents were represented by counsel but there was no legal representation for the appellant. Upon enquiry, the Court was duly informed that there was proof of service of hearing notice to the counsel for the appellant. Appellant having duly filed and served its brief of argument,
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same was deemed argued.
Mr. Akoni, learned senior counsel for the 1st respondent identified his brief of argument. He adopted and relied on same to urge the Court to dismiss the appeal for want of merit.
Mr. Nliam, learned counsel for the 2nd respondent once again announced to the Court that he did not and does not intend to file any brief of argument for the 2nd respondent. Accordingly, the appellant’s brief of argument settled by Selekeowei, Larry, SAN was duly considered.
The following two issues were distilled by the appellant for the determination of the appeal in its brief of argument:
Issues for Determination
1. Whether the Court of appeal, Lagos Division was right in holding that the appellant’s Notice of appeal before it, filed without leave of Court was incompetent thereby proceeding to strike out same on account that the grounds of appeal contained therein are not grounds of law alone but of mixed law and fact (Distilled from grounds 4,5,6,7 and 8 of the notice of appeal).
2. Whether the Court of Appeal, Lagos Division was right in dismissing the appellant’s appeal and affirming the ruling of the trial Court without proffering any reason for its decision, after withholding the 1st respondent’s preliminary objection and consequently striking out the Notice of appeal. (Distilled from grounds 1, 2 and 3 of the Notice of Appeal).
The issues were argued seriatim in the appellant’s brief of argument.
On the first issue, it was contended that the Court below was in error when it struck out the appellant’s Notice of Appeal before it as incompetent, as no leave of Court was first sought and obtained before same and filed, for the reason that the grounds contained therein are not of pure law but of mixed law and fact.
Learned senior counsel for the appellant referred to Section 241 (1) (b) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) and contended that an appeal from a decision of the Federal High Court to the Court of appeal is as of right where the grounds of appeal raise questions of law alone. In other words, he submitted that in such a case, a specific right of appeal is conferred by the Constitution devoid of any requirement of leave to appeal notwithstanding, that the appeal is against an interlocutory decision. He referred to the four (4) grounds of appeal contained in the notice of appeal in question, filed on 23rd July, 2013 before the Court below. He submitted that no leave was required to file the said notice of appeal contrary to the findings of the Court below.
Based on the decisions of this Court in couple of cases, learned counsel submitted that the way out on this line of distinction between a ground of appeal simpliciter on law and mixed law and fact, is to carefully examine the grounds of appeal along with the particulars attending to them, to determine whether they reveal a misunderstanding by the lower Court of the law or a misapplication of the law to facts already proved or undisputed or admitted. He cited, Nwadike v. Ibekwe (1987) 4 NWLR (PT. 67) 718, K.T.P Ltd v. GAH (Nig) Ltd (2005) 13 NWLR (Pt. 943) 680; Iwueke v. I.B.C. (2005) 17 NWLR (PT. 955) 447.
Learned senior counsel contended that a careful examination of the four grounds of appeal in the vexed notice of appeal before the lower Court world reveal that the grounds center on the misunderstanding or misapplication of the law of agency to the proved, established, accepted, undisputed or admitted fact that the appellant was sued as an agent to a disclosed principal – NIMASA which was never joined as a party. He contended further that the 1st respondent, by its own admission in its own admission in its pleadings vide Paragraph 5 of the supporting affidavit to its originating summons sued the appellant as an agent of NIMASA for acts, levies, taxes etc. done or demanded by NIMASA from the 1st respondent in the exercise of the statutory powers of NIMASA under several extant legislations without making NIMASA a party to the suit.
The appellant referred to the 1st respondent’s preliminary objection of 25th June, 2013, wherein it moved the trial Court to strike out the suit for want of jurisdiction and or strike out the appellant’s name from the suit for misjoinder and set aside the Form 48 issued against it. The appellant did not file any counter affidavit and so did not join issues with the 1st respondent. He submitted that it was the decision of the trial Court, which overruled and dismissed the objection that
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form the basis for the four grounds of appeal in the vexed Notice of Appeal before the Court below.
Learned senior counsel submitted that the said grounds of appeal in the vexed Notice of Appeal being such that allege misunderstanding and/or misapplication of the law cannot be highly struck down as the lower Court did as being of mixed law and fact, and therefore requiring leave to be competent.
He contended that even on a more global view, the objection culminating in the ruling appealed against therein is one that raises the question of jurisdiction against the trial Court, and therefore indicative of raising grounds of pure law. He urged the Court to resolve the issue against 1st respondents and hold that the Notice of appeal is competent as it requires no leave to be competent.
On the second issue, the appellant contended that the Court below erred when it dismissed the appellant’s appeal without giving reasons for its decision, and that the Court below in so doing violated its right to fair hearing guaranteed under Section 36 of the Constitution of the Federal Republic of Nigeria 1999 as amended, and abdicated its judicial responsibility under Section 294 (1) of the same Constitution. The appellant’s learned senior counsel submitted that the appellant’s grouse is that the Court below heard the substantive appeal on the merits alongside the respondent’s preliminary objection which it upheld and proceeded to affirm the ruling of the trial Court without proffering any reason.
Learned senior counsel contended that a Court has a duty to decide the merit of a case upon the issues canvassed before it. The reason is that, being an intermediate appellate Court, its decision on jurisdiction could be reversed on appeal to this Court, in which case if all other issues had been decided, at least, in the alternative, it would prevent the necessity of the Supreme Court having to remit the appeal to the Court below for it to resolve other issues originally arising in the appeal. He relied on several cases, including Elelu-Habeeb v. A. G. of the Federation (2012) 13 NWLR (Pt. 1318) 423; Tanko v. UBA Plc (2010) 17 NWLR (pt. 1221) 80; Obisi v. Chief Naval Staff (2004) 11 NWLR (pt. 885) 482; Okotie-Eboh v. Manager (2004) 18 NWLR (pt. 905) 242.
Learned senior counsel referred to the conclusion of the judgment of the Court below whereby, it dismissed the appellant’s appeal and affirmed the ruling of the trial Court. He contended that the Court below did not give any reason for its decision to dismiss the appeal before it which it had already struck out in the preceding paragraph of the judgment. He submitted that a decision of a Court, without the reason for the same is in law, no decision at all. He submitted further that the substance of a Court judgment is the ratio decidendi but not in the mere passing remarks. He contended that every Court whose decision is subject to appeal is required to state the reason(s) for its decision to enable the parties know how the Court arrived a its decision. He relied on Abubakar Vs. Nasamu (NO.1) (2012) 17 NWLR (Pt.1330) 523; Ogboru Vs. Uduaghan (2012) 11 NWLR (Pt.1311) 357; PDP Vs Okorocha (2012) 15 NWLR (Pt.1323) 205; Oyeyemi Vs. lrewole L.G.(1993)1 NWLR (pt.270) 462.
Learned senior counsel contended that the Court below abdicated its duty to consider the substantive issues placed before it in the appeal despite having heard the appeal contemporaneously with the preliminary objection. He further contended that despite declining to consider the appeal on the merit, the Court below proceeded to affirm the ruling of the trial Court, without proferring reason for the decision. He submitted that the decision of the Court below dismissing the appeal and affirming the trial Court’s decision is a nullity and he urged the Court to so hold.
The appellant referred to Section 22 of the Supreme Court Act, Caps.15, Laws of the Federation of Nigeria, 2004. He contended that the Supreme Court is empowered to exercise full jurisdiction over a case and deal with it in the same way a trial Court or the Court below would have done. He however contended further that before this Court would invoke its said omnibus powers, it must ensure that the followings are considered:-
(a) The availability before it of all necessary materials on which to consider the request of the party;
(b) The length of time, between the disposal of the action in the Court below and the hearing of the appeal at the supreme Court and
(c) The interest of justice to eliminate further delay in the hearing of the matter and minimize the hardship of the party.
He relied on Odedo Vs. INEC (2008) 17 NWLR (Pt.1117) 554; Obi Vs. INEC (2007) 11 NWLR (Pt.1046) 564; Ladoja Vs. INEC (2007) 12 NWLR (pt.1047) 119; Yusuf Vs. Obasanjo (2003) 16 NWLR (Pt.847)554.
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Learned senior counsel refereed to the two issues the appellant considered to be in controversy in the appeal before the Court below and urges the Court to determine same and make appropriate orders. He referred to the documents in the record already transmitted and contended that since the substantive matter is still pending before the Federal High Court, Lagos, it is in the interest of justice that this Court steps into the shoes of the Court below and deal with the real issues earlier identified rather than remitting same to the Court below. He urged the Court to invoke Section 22 of the Supreme Court and resolve the real issues put before the Court below which it failed to consider.
From the eight grounds of appeal filed by the appellant, the 1st respondent distilled the following two issues as it considered germane to the just determination of this appeal, to wit:-
“1. Whether from the facts and circumstances of this case, the Court below, was right in upholding the 1st respondent’s Preliminary Objection and consequently striking out the appellant’s Notice of Appeal which was filed without the statutorily required leave of Court? (Distilled from grounds 4, 5, 6, 7 and 8 of the Notice of Appeal)
2. Whether the Court below was right in affirming the ruling of the trial Court dismissing the appellant’s preliminary objection after finding that the appellant’s Notice of Appeal against the ruling was incompetent? (Distilled from grounds 1, 2 and 3 of the Notice of Appeal)”
Learned senior counsel for the 1st respondent took the issues seriatum.
On issue No 1 he contended that it is now settled beyond equivocation that by a combined reading of Section 241 and 242 (1) of the 1999 Constitution of the Federal Republic of Nigeria, and Section 14 of the Court of Appeal Act, appeals against interlocutory decisions of a High Court mandatorily require the leave of the High Court or of the Court below to be first sought and obtained before filing the Notice of Appeal, in so far as the grounds of appeal are not based on grounds of flaw alone. In other words, obtaining a leave of Court is a desideration to the successful exercise of a right of appeal whenever the decision complained against is an interlocutory decision and grounds of appeal are of mixed law and facts.
He contended further that there is no dispute that the appellant did not first seek and obtain leave of either the High Court or the Court below before it filed its Notice of Appeal to the Court below and that parties agreed on the point that the vexed decision of the trial Court delivered on 12th July, 2013 is an interlocutory rather than a final decision as same did not determine the rights of the parties in the 1st respondent’s suit. The point of divergence between the parties is the question whether the grounds of appeal before the Court below were grounds of mixed law and facts, thus requiring leave of the trial Court or of the Court below or grounds of law alone.
Learned senior counsel contended that a Notice of Appeal is an originating process which activates the jurisdiction of an appellate Court. He relied on PMB Ltd v. NDIC (2011) 12 NWLR (pt. 1261) 253 at 262; Nigeria Navy v. Labayo (2012) 17 NWLR (PT. 1328) 56 at 81.
He submitted that the principles that should guide a Court in its quest for the proper determination of whether a ground of appeal is ground of law, a ground of mixed law and facts or simply a ground of fact has been laid down by this Court in Ogbechie & Ors v. Onochie & Ors (1986) 2 NWLR (PT.23) 484 at 491.
Learned senior counsel contended that in arguing that the grounds of appeal before the Court below were grounds of law alone, the appellant set out the grounds of appeal and contended that they were grounds of law alone. He submitted that the approach by the appellant is misleading and contravenes the directives of this Court. He relied on Kisdhadadi v. Sarkin Noma (2007) 13 NWLR (pt. 1052) 510 at 522.
He referred to the Notice of Appeal filed by the appellant at that Court below at pages 1551-1555 of the record of appeal and considered each of the four grounds of appeal raised in the said Notice of Appeal. He submitted that all the questions necessarily involve evaluation of facts and hence the grounds of appeal are grounds of fact or at best of mixed law and facts and he urged the Court to so hold. He submitted that where an appellant ought to have sought leave before filing his notice of appeal and no such leave was sought, the appeal is incompetent and liable to be struck out. He relied on Abubakar v. Waziri & Ors (2008) NWLR (PT. 1108) 507; Coker v. UBA Plc (1997) 2 NWLR (Pt. 490) 641; Njemanze v. Njemanze (2013) 8 NWLR (PT. 1356) 376; Garuba & Ors v. Omokhodion & Ors (2011) 6 NMLR 143 AT 165.
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Learned senior counsel submitted that by a combined reading of the extant provisions of Section 241 (2) and 242 Constitution of the Federal Republic of Nigeria, 1999 and Section 14 of the Court of Appeal Act, and on the strength of the judicial authorities cited, the Court is urged to resolve the issue against the appellant; uphold the finding of the Court below that the appellant’s Notice of Appeal having been filed without the requisite leave of Court, is consequentially incompetent and was correctly struck out.
On issue No. 2 formulated by the 1st respondent, the learned senior counsel contended that the effect of a combined consideration of grounds 1, 2 and 3 of the appellant’s Notice of Appeal against the judgment of the Court below will reveal that the appellant’s grouse with the judgment revolves around the question of whether the Court below was right in affirming the ruling of the trial Court dismissing the appellant’s preliminary objection to the competence of the substantive suit. Learned senior counsel contended that in arguing this issue, the appellant has made heavy weather of the fact that the Court below dismissed the appellant’s appeal after striking out of Notice of Appeal. He submitted that this is a non- issue.
He referred to the judgment of the Court below and to the extent that the Court had already struck out the Notice of Appeal for incompetence, he submitted that there was nothing left to dismiss and the order of striking out remains the only extant order of the Court below. He submitted further, that, indeed, the law is that where a dismissal order is made in circumstances where the action cannot be said to have been determined on the merits; such dismissal would be legally construed as a mere striking out and not a dismissal on the merits. He relied on Panalpina World Transport v. Olandeen International & Ors (2010) 12 SC (PT. 111) 30 at 49.
The respondent contended that assuming without conceding that the Court below was wrong to dismiss the appellant’s appeal and affirm the trial Court’s ruling rather than merely striking out the appeal for incompetence, the 1st respondent submitted that there is a mere error or slip which is not substantial enough to warrant the Court reversing the entire judgment of the Court below. He submitted further that it is not every error of a Court that has the effect of leading to a reversal of the judgment by an appellate Court. For the Court to set aside or reverse the decision of the Court below, such wrong complained about must have occasioned a serious miscarriage of justice against the aggrieved party. He relied on Bayol v. Ahemba (1994) 10 NWLR (PT. 623) 381;Pan Atlantic Shipping & Trans v. Rhein Mass GMBH (1997) 3 NWLR (pt. 493) 248.
Learned senior counsel submitted that even if this Court find that the Court below ought not to have made the order dismissing the appeal, having come to the right conclusion that the appellant’s Notice of appeal was incompetent, the proper order for this Court to make is not to allow this appeal, but to substitute the order of dismissal with an order striking out. He relied on Road Transport Employers Association of Nigeria v. National Union of Road Transport Workers (1992) NWLR (pt. 224) 381.
On the contention of the appellant that this Court ought to invoke the provisions of Section 22 of the Supreme Court Act and deal with the issues in the appeal that was filed at the Court below rather than remitting same to the Court below for determination, learned senior counsel referred to the issues distilled by the appellant and 1st respondent respectively and went to town with his copious submissions on the appeal before the Court below and finally urged the Court to dismiss the appeal in its entirety and uphold the ruling of the Court below dismissing the appellant’s appeal and upholding the trial Court’s dismissal of the appellant’s preliminary objection.
As I stated earlier, the 2nd respondent did not file any brief of argument in this appeal. Even on the date this appeal was heard, learned counsel for the 2nd respondent announced to the Court that he did not file any process and did not intend to file any process in the appeal. As a result, this appeal shall be resolved or determined based on the processes filed by the appellant and 1st respondent only.
I have carefully examined the two issues formulated by both the appellant and 1st respondent respectively and IÂ have come to the conclusion that their respective issues having been duly formulated from the same grounds of appeal filed by the appellant and saying the same thing though slightly differently couched, I shall utilize the two issues of the appellant to determine this appeal.
Issue No. 1
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The issue is whether the Court below was right in holding that the appellant’s Notice of Appeal before it, filed without leave of Court was incompetent thereby proceeding to strike out same on account that the grounds of appeal contained therein are not grounds of law alone but of mixed law and fact.
As I earlier stated, the appellant herein was also the appellant at the Court below and a defendant before the trial Federal High Court, Lagos division. It had filed an appeal before the Court below against the decision of the trial Court, but the said appeal was decided by the Court below upon the preliminary objection raised by the 1st respondent. That had led to the instant appeal.
There is no doubt that appellate jurisdiction of both the Court below and this Court are provided for in the Constitution.
Subject to the provisions of the Constitution, the Court of appeal shall have jurisdiction to the exclusion of any other Court of law in Nigeria, to hear and determine appeals from the Federal High Court, the National Industrial Court, the High Court of the Federal Capital Territory, Abuja, High Court of a State, Sharia Court of Appeal of the Federal Capital Territory, Abuja, Sharia Court of Appeal of a State, Customary Court of Appeal of a State and from decision of a Court Martial or other Tribunal as may be prescribed by an Act of the National Assembly. See;Section 240 of the Constitution of Federal Republic of Nigeria, 1999 (as amended)
However, with regard to appeals as of right from the Federal or State High Courts, Section 241 provides inter alia,as follows:
“Section 241(1),
An appeal shall lie from decisions of the Federal High Court or a High Court to the Court of Appeal as of right in the following cases:-
(a) Final decisions in any civil or criminal proceedings before the Federal High Court or a High Court sitting at first instance;
(b) where the ground of appeal involves questions of law alone, decisions in any civil or criminal proceedings;
(c) Decisions in any civil or criminal proceedings on questions as to the interpretation or application of this Constitution;
But subject to the provision of Section 241 of the Constitution above, an appeal shall lie from decisions of the Federal High Court or a State High Court to the Court of Appeal with the leave of the Federal High Court or that of States High Court or the Court of Appeal. See Section 242(1) of the 1999 Constitution of Federal Republic of Nigeria (as amended).
Yet by law, appeals against interlocutory decisions of a High Court require the leave of the High Court or of the Court of Appeal to be first sought and obtained before the filing of the Notice of Appeal, in particular, where the grounds are not based on grounds of law alone. See Section 14 of the Court of Appeal Act.
In the instant matter, certain facts are not in dispute and are very clear from doubt, on the records. They are:
1. The fact that the appeal in question to the Court below was an interlocutory decision of the Federal High Court.
2. The appellant neither sought nor obtained any leave of either the Federal High Court or the Court below before the Notice of appeal was filed.
What is therefore being contested is whether or not there was need to or rather whether the grounds of appeal are not of law alone that will not require that leave of Court be first sought and obtained before the filling of the Notice of Appeal. In other words, the point of divergence between the parties is the question whether the grounds of appeal filed by the appellant before the Court below were grounds of mixed law and facts which require leave of either the trial Federal High Court or that of the Court below or ground of law alone.
The appellant had contended strongly that there was no need to have sought leave of Court before the appellant filed the Notice of Appeal in the case that was put before the Court below. But the 1st respondent thought differently, that with the grounds of appeal contained in the Notice of Appeal, the appellant required and ought to have obtained leave of either the trial Federal High Court or the Court below. And not having so
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obtained the said required leave, it considered the said Notice of Appeal incompetent and liable to be struck out.
However, it is trite law that in order to see whether or not the alleged grounds of appeal filed with the Notice of Appeal before the Court below are grounds of mixed law and facts thus requiring leave of Court before being filed, there is need to state the said grounds and their respective particulars. They are as follows:
Grounds of Appeal:
1. The learned trial judge erred in when his Lordship held that the Appellant – a purported agent of NIMASA itself was not joined as a party.
Particulars
(i) By its originating summons, the 1st respondent sought the determination of questions relating to the interpretation of certain provisions of some statues relating to NIMASA’s supervisory functions over it. (1st Respondent)
(ii) In the affidavit in support of the originating summons, the 1st respondent described the appellant as an agent of NIMASA.
(iii) All actions complained of in the said affidavit were said to have been carried out by NIMASA – but that certain equipment of appellant were used by NIMASA in carrying out the actions.
(iv) NIMASA was not joined as a party to the action but an ex-parte order of injunction was obtained against the appellant in a bid to bind NIMASA.
2. The learned trial judge erred in law when his Lordship held that, the appellant was properly joined as a party since there were allegations of wrong doing in some paragraphs of the affidavit in support of the originating summons.
Particulars
(i) It is the substantive claim/reliefs sought, rather than mere mention or narration of a person’s action in an affidavit that is required to establish a cause of action against the person.
(ii) The crux of the 1st Respondent’s action before the Honourable Court was the interpretation of some provisions of certain law relating to its obligations and the supervisory functions of NIMASA – the purported principal of the appellant who was not joined as a party.
(iii) There was no specific relief sought against the appellant in the questions proffered for resolutions or the reliefs sought.
(iv) It is clear that the appellant, being a private body, is in no position to ensure the compliance with or execution of any provision of law relating to statutory bodies such as NIMASA.
3. The learned trial judge erred in law when his Lordship refused to decline jurisdiction to entertain the suit when the proper parties necessary for proper resolution of the questions were not before it.
Particulars
(i) One of the prerequisites for a Court to assume jurisdiction is the presence of necessary parties before it. Bello v. INEC (2010) 3 NWLR (pt. 1196) 341 at 410.
(ii) The 1st respondent’s originating summons primarily sought the interpretation of laws relating to the exercise of NIMASA’s supervisory functions over it which enable it to demand for taxes and levies and other payments.
(iii) NIMASA was not joined as a party to the action.
(iv) The Attorney General was made the 1st defendant to the action and its joinder was predicated upon a conception that it was NIMASA’s principal.
(v) The appellant herein was joined as 2nd defendant to the action and described as an agent of NIMASA.
4. The learned trial judge erred in law when his Lordship held that non compliance with the pre-action notice to NIMASA under Section 53(2) of the NIMASA Act, did not rob the Court of jurisdiction to entertain the substantive suit which was brought against appellant, as and agent of NIMASA, because the suit raised claims in tort which could be proceeded with against principal and agent whether jointly or severally.
Particulars
(i) The distinction between action and other suits is not a valid exemption to compliance with the provisions ofS.53 (2) of the NIMASA Act.
(ii) The substantive action was not for redress in tort, but one for interpretation of statutory provision.
(iii) The jurisdiction of Court over ancillary relies (if any) is lost where there is no jurisdiction to entertain the principal claim
(iv) Pre-action notice in Section 53 (2) of NIMASA Act, prohibits the institution of a suit against NIMASA, its Directors Board members, and employees without first giving 30 days notice to the Agency with indication of the cause of action and reliefs sought.
(v)Failure to give pre-action notice, where affected party objects, robs the Court of jurisdiction.
(vi) The appellant having been sued as agent of NIMASA is entitled to raise the point of objection.
It is trite law, that it is difficult to distinguish a ground of law from a
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ground of fact. However, the grounds of appeal in any case concerned must be thoroughly examined to see whether the grounds reveal a misunderstanding by the lower Court or tribunal of the law or a misapplication of the law to the facts already proved or admitted, in that case, it would be simply question of law or one that would require questioning the evaluation of facts by the lower Court or tribunal before the application of the law, in which case it would amount to question of mixed law and fact. But where the appeal against the findings made by the Court below, then the question is on facts and then leave of Court will be required before filing the Notice of appeal. See J.B. Ogbechie & Ors v. Gabriel Onochie & Ors (1986) 1 SC 54; (1986) NWLR (pt. 23) 484.
It is equally trite law and constitutionally required that while appeal to the Court below from the trial Court on the issue of law is as of right, an appeal purely on the facts or mixed law and facts requires leaves of the Court from where appeal lies or the Court to which the appeal lies.
It had been held that in determining the nature of a ground of appeal, the ground and its particulars must be read togrther. It is only by reading the ground as a whole that the complaint of the appellant about the judgment on appeal will be apparent . See Nnanyelugo L.A. Orakosim & Ors v. Francis Ifeanyichukwu Menkiti (2001) 9 NWLR (PT 719) 529; (2001) 5 SC (PT. 1) 72.
There is no doubt, and it is trite law that a ground of appeal does not become a ground of law merely or simply because it is so described in the Notice of Appeal. Indeed, the ground of appeal itself with its particulars must clearly show that it is a ground of law for it to require no leave of Court before being filed.
This Court is in several decisions had long laid down the general principles to guide the Court and parties in determining whether a particular ground of appeal is one of law, or fact or mixed law and facts. The following are three ways to determine a question of law:
(a) A question the Court is bound to answer in accordance with a rule of law. That is, the question is already determined and answered by the law.
(b) That which explains what the law is. An appeal on a question of law in this sense means an appeal in which the question for argument and determination is what the true law is, on a certain matter, for instance, a question relating to the construction of a statutory provision.
(c) All questions within the judicial powers of a judge to determine and not that for a jury, for instance, the interpretation of documents. In other words, any ground of appeal which alleges misunderstanding of the lower Court of the law or misapplication of the law to the facts already proved, admitted or undisputed, or a misdirection, is purely a ground of law.
See Ogbechie Ors v. Onochie & Ors (supra); Nwadike v. Ibekwe (1987) 4 NWLR (Pt. 67) 718; Metal Construction (West African) Ltd v. Migliore (1990) 1 NWLR (Pt. 126) 229; ACB Plc v. Obimiami Brick & Stone (1993) 5 NWLR (Pt. 294) 399. General Electric Co. v. Hancy A. Akande & Ors (2010) 18 NWLR (pt. 1225) 596.
However, where the facts are in dispute and the issue of evaluation of the facts by the lower or trial Court arises before the application of the law, this will constitute a matter of mixed law and fact. See; UBA Ltd v. Stahlbau GMBH & Co. KG (1989); Briggs v. Okoye (2005) 4 SC 89 at 94.
As I had earlier stated in this judgment, the decision of the trial Court being appealed was not a final decision but interlocutory. Furthermore, it is not being undisputed that the appellant neither sought nor obtained leave of either the trial Federal High Court or that of the Court below. But to the latter, the appellant had argued that no leave was required to file the Notice of Appeal being challenged, the four grounds being grounds of law alone.
I have carefully perused the vexed grounds of appeal with their particulars. There is no doubt that grounds 1, 2 and 3 of the Notice of appeal are talking about issue of proper and necessary parties in the action before the trial Federal High Court.
The issue of who is a proper or necessary party to be joined in an action depends on the evidence to be adduced before the Court or rather the facts of the case.
It has long been held that proper parties are those who though not interested in the plaintiff’s claim, are made parties
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for some good reasons, for example, in an action instituted to rescind a contract, any person who was active or concurring in the matters which gave the plaintiff the right to rescind, is a proper party to the action. Necessary parties are those who are not only interested in the subject matter of the proceedings but also who in their absence, the proceeding could not be fairly dealt with. In other words, the question to be settled in the action between the existing parties must be a question which cannot be properly settled unless they are parties to the action instituted by the plaintiff. See Chief Abusi David Green v. Chief (DR) E. T. Dublin Green (1987) NWLR (pt. 61) 481 (1987) LPELR SC206/1986; Amon v. Raphael Tuck & Cons (1956) 1 WB 357; Re Vandervills Trust (1971) A.C. 812; Re Vandervelle (1969) 3 All ER 497.
It is admitted that there were allegations of wrong doings couple of paragraphs of the affidavit in support of the originating summons. Therefore, whether or not proper parties were before the trial Court and whether there was proper evaluation of the affidavit evidence to warrant the decision taken by the trial judge will be a question of mixed law and facts.
Now to ground 4 of the Notice of Appeal. This ground when read with the particulars as it should be read, shows that the issue of pre-action notice to NIMASA under Section 53(2) of the NIMASA Act cannot be unless and until the question of proper parties is resolved. In other words, the issue of non compliance with he requirement of pre-action notice does not arise without the resolution of the necessity of its being a party who was required to be before the Court. In the same vein, whether or not the substantive suit of the 1st respondent before trial Court which was brought against the appellants as an agent of NIMASA, is a suit that raised claims in tort which could be proceeded with against principal and agent is a question of mixed law and fact. In the result, it is clear that none of the four grounds of appeal raised in the vexed Notice of Appeal filed by the appellant is a pure ground of law. Indeed, they are all grounds of mixed law and facts which the law says cannot be filed without the leave of either the trial Court or the Court below.
In the final analysis, the appellant not having shown that leave of either the trial Federal High Court, Lagos or the Court of Appeal, Lagos division was duly obtained before the Notice of appeal dated 23rd July, 2013 against the interlocutory decision of the trial Court was filed, the said Notice of appeal was incompetent and deserve to be struck out. Accordingly, the Court below was right to have held that the said Notice of appeal was incompetent and properly struck out.
Having found that the vexed Notice of appeal filed by the appellant which was challenged by the 1st respondent was incompetent, leave not having been obtained to file same and was appropriately struck out, I do not consider it necessary to further consider the second issue raised by the appellant. In any event, once a Notice of Appeal is adjudged incompetent and struck out, there was nothing left with the appeal.
In the circumstance, and without any further ado, this appeal is lacking in merit and should be dismissed. Appeal is accordingly dismissed.
The decision of the Court below delivered on 11th August, 2014 by which the appellant’s Notice of appeal filed before the Court below was struck out is affirmed.
Parties are to bear their respective costs.
IBRAHIM TANKO MUHAMMAD, J.S.C.: My learned brother, Ariwoola, JSC graciously made available to me a copy of his lead judgment just delivered I agree with him in his reasoning and conclusion. I too dismiss the appeal and abide by consequential orders made in the lead judgment.
KUMAI BAYANG AKA’AHS, J.S.C.: My learned brother, Ariwoola JSC made available to me before now, his judgment in this appeal which turns on the Notice and grounds of appeal filed by the appellant after the Federal High Court sitting in Lagos had dismissed its preliminary objection together with the application seeking to discharge the order of interim injunction granted against it on 12/7/2013 in Suit No. FHC/C/L/CS/847/2013 .The appellant was dissatisfied with the ruling of the trial Federal High Court and appealed against it in appeal No CA/L/849B/2013.
…………………….J…………………….
On 11/8/2014 the Court of Appeal struck out the appeal on account of incompetent notice and grounds of appeal since leave to appeal was not granted either by the Federal High Court or the Court of Appeal. lt is against this judgment delivered on 11/8/2014 that the appellant further appealed to this Court and filed its Notice of Appeal containing eight grounds on 22/8/2014 from which two issues were distilled for determination.
We should not lose sight of the appeal which was struck out by the lower Court. The Notice was accompanied by four grounds of appeal. The said grounds shorn of their particulars are as follows:-
“GROUND ONE
The learned trial Judge erred in law when his lordship held that the appellant – a purported agent of NIMASA – was a proper party to the action for acts purportedly done by NIMASA when NIMASA itself was not joined as a Party.
GROUND TWO
The learned trial judge erred in law when his Lordship held that the appellant was properly joined as a party since there were allegation of wrong in some paragraphs of the originating summons.
GROUND THREE
The learned trial judge erred in law when his lordship refused to decline jurisdiction to entertain the suit when the proper parties necessary for proper resolution of the questions were not before it.
GROUND FOUR
The learned trial judge erred in law when his lordship held that non-compliance with the pre-action notice to NIMASA under Section 53{2) of the NIMASA Act, did not rob the Court of jurisdiction to entertain the substantive suit which was brought against appellant, as an agent of NIMASA because the suit raised claims in tort which could be proceeded with against principal and agent either jointly or severally.”
Both the grounds of appeal contained in the Notice of Appeal the Court below as well as the Notice and grounds of appeal to this Court must be scrutinised to see if they are grounds of law as claimed by the appellant or grounds of mixed law and fact as contended by the respondents in the Court below and in this Court. The use of the phrase “error in law” is not a magic wand that will automatically transform a ground of appeal into a ground of law. Guidelines have been given on how a ground of law is to be distinguished from one that is of mixed law and fact. See: Ogbechie v. Onochie (1986) 1 NWLR (Pt. 23) 484; Nwadike v. Ibekwe (1987) 4 NWLR (PT.67) 718. ln order to determine the nature of a ground of appeal, both the grounds and the particulars must be read together. See Nnanyelugo L. A. Orakosim & Ors. v. Francis lfeanyichikwu Menkiti(2001) 9 NWLR {pt.719} 529.
My Lord, Ariwoola JSC has admirably dissected the grounds of appeal in the Court below and in this Court and arrived at the conclusion that the Court below was right to strike out the appeal since the grounds in the Notice of Appeal were grounds of mixed law and fact and leave was required before the appeal could become competent. Since leave was not sought either in the trial Court or the Court below, the appeal was incompetent and liable to be struck out which the Court below did. I entirely agree.
The appeal lacks merit and it is accordingly dismissed. I also endorse the order that parties should bear their respective costs.
CHIMA CENTUS NWEZE, J.S.C.: My Lord, Ariwoola, JSC, obliged me with the draft of the leading judgment just delivered now. I agree with His Lordships reasoning and conclusion.
In consequence, this short contribution would be circumscribed to a juridical phenomenon which has become an albatross to many appeals. As shown in the leading judgment, the respondent’s preliminary objection, at the lower Court, was predicated on the irrefutable contention that, whereas the appellants Grounds of Appeal broached questions of mixed law and fact, no prior leave of the either the Federal High Court or of the lower Court was sought and obtained; hence the appeal was incompetent ab initio.
This submission found favour with the lower Court. In this further appeal, the appellants still maintained that they needed no such leave either from the trial Federal High Court or the lower Court. In effect, they impugned the conclusion of the lower Court on this question.
Like the leading judgment, I find no merit this complaint against the position which the lower Court took; that is, its decision striking out the Notice of Appeal before it as being incompetent.
…………………….K…………………….
My Lords, this conclusion notwithstanding, it ought to be restated here that even this Court had confessed its difficulty in distinguishing a ground of law from a ground of mixed law and fact, Ogbechie v. Onochie [1986] 1 NWLR 1 (pt. 70) 370. There, Eso JSC, approvingly, adopted the scintillating expose on the subject by C.T. Emery and Professor B. Smythe in their article titled, “Error of Law in Administrative Law”, in Law Quarterly Review Vol. 100 (October 1984).
Other examples include: UBA Ltd v Stahlbau Gmbh & Co [1989] 3 NWLR (pt 110) 374, 391-392; Obatoyinbo v Oshatoba [1996] 5 NWLR (pt. 450) 531, 548; MDPDT v. Okonkwo [2001] 3 KLR (pt. 117) 739 etc.
Instructively, however, this difficulty, notwithstanding, this Court has, ingeniously, fashioned out formulae for navigating through the nuances of the characterisation of grounds of appeal.
The first formula aims at facilitating the ascertainment of what constitutes a ground of appeal. It comes to this: a Court has a duty to do a thorough examination of such grounds which the appellant filed.
The main purpose of the examination will be to find out whether – if from the said grounds, it is evident that the lower Court misunderstood the law or whether the said Court misapplied the law to the facts which are already proved or admitted. In any of these two instances, the ground would qualify as a ground of law.
On the other hand, if the ground complains of the manner in which the lower Court evaluated the facts before applying the law, the ground is of mixed law and fact. The determination of grounds of fact is much easier.
Simply put, these formulae simply mean that it is the essence of the ground; the main grouse: that is, the reality of the complaint embedded in that name, that determines what any particular ground involves, Abidoye v. Alawode [2001] 3 KLR (pt. 118) 917, 919; NEPA v. Eze [2001] 3 NWLR (pt. 709) 606; Ezeobi v. Abang [2000] 9 NWLR (PT. 672) 230; Ojukwu v. Kaine [2000] 15 NWLR (pt. 691) 516.
In effect, it is neither its cognomen nor its designation as “Error of Law” that determines the essence of a ground of appeal, Abidoye v. Alawode (supra) 927; UBA Ltd v. Stahlbau Gmbh and Co [1989] (supra) 374, 377; Ojemen v. Momodu [1983] 3 SC 173.
Against this background, I sympathize with the appellant’s counsel and indeed, all counsel who have been enmeshed in this nightmare. But wait a minute! My Lords, permit me to add here that my sympathy for counsel is of no moment as the law brooks neither sentiment nor empathy Suleiman v C. O. P. Plateau State[2008] 21 WRN 1, 13; Udosen v State [2007] 4 NWLR (PT. 1023) 125; 137, EZEUGO V. OHANYERE [1978] 6-7 SC 171; ONIAH V. ONYIA [1989] 1 NWLR (PT 99) 514; OMOLE AND SONS LTD V. ADEYEMO [1994] 4 NWLR (PT. 336) 48.
Accordingly, I agree with the leading judgment that this appeal is unmeritorious and must fail. As a result, I also enter an order dismissing it. I abide by the consequential orders in the leading judgment.
AMIRU SANUSI, J.S.C.: The judgment prepared by my learned brother Ariwoola JSC was made available to me before now. Having perused same, i find myself in entire agreement with his reason and conclusion that this appeal is bereft of any merit and deserves to be struck out.
His lordship had thoroughly and painstakingly dealt with all the salient issues canvassed by the learned counsel to the parties before he arrived at such conclusion which I entirely agree with and adopt as mine. I also adjudge the appeal to be meritless. In affirming the judgment of the Court below, I hereby also strike out the appeal and decline to award costs. Appeal struck out.
Appearances
No legal representation – For Appellant
AND
Olawale Akoni, SAN with him, B.B. Lawal, Esq., A.O. Utake, Esq. and A. A Achiniun (Miss) for the 1st respondent.
Dr. Oscar Nhiam with him, Adeola Adeniyi, Esq. Nnanna Oketa, Esq. and Akintola Makinde, Esq. for the 2nd Respondent – For Respondents<
MT SEA PIONEER & ORS v. ADEYEYE
On Friday, July 01, 2022
CA/L/1304/2017Before Their Lordships
Muhammad Ibrahim Sirajo Justice of the Court of Appeal
Adebukunola Adeoti Ibironke Banjoko Justice of the Court of Appeal
Between
Judgment
MUHAMMAD IBRAHIM SIRAJO, J.C.A. (Delivering the Leading Judgment) : By a Notice of Appeal founded on four grounds of appeal dated and filed on 8th August, 2017, the Appellants challenged the judgment of the Federal High Court, Lagos Division (the lower Court) in Suit No. FHC/L/CS/1612/2013, delivered by I.N. Buba, J., on the 7th day of July 2017. On 14/03/2018, the Appellant filed an Amended Notice of appeal containing five (5) grounds of appeal and was deemed properly filed on 06/07/2021. Before the lower Court, the Appellant and the Respondent were the Defendants and Plaintiff respectively.
As Plaintiff before the lower Court, the Respondent claimed the following reliefs against the Defendants/Appellants at paragraph 27 of his Statement of claim: a. AN ORDER directing the 1st, 2nd and 3rd defendants to pay the sum of N100,000,000 (One Hundred Million) jointly and/or severally to the plaintiff being damages suffered as a result of the negligence of the 1st, 2nd and 3rd defendants. b. AN ORDER directing the 1st, 2nd and 3rd defendants to bear the cost of carrying out of adequate surgery on the plaintiff at a reputable hospital. c.
AN ORDER compelling the defendants jointly and/or severally to apologize to the plaintiff through a letter of apology that must be published in three National dailies. d. Cost of this action. The Appellants/Defendants denied the claim and the matter proceeded to trial. While the Respondent called two witnesses, the Appellants called a sole witness. At the end of trial, the lower Court entered Judgment for the Respondent in the following terms: “(i).
An Order directing the 1st, 2nd and 3rd Defendants to pay the sum of N100,000,000 (One Hundred Million Naira) jointly and/or severally to the Plaintiff being damages suffered as a result of the negligence of the 1st, 2nd and 3rd Defendants. (ii). An Order directing the 1st, 2nd and 3rd defendants to bear the cost of carrying out of adequate surgery on the plaintiff at a reputable hospital. (iii).
An Order compelling the defendants jointly and/or severally to apologize to the plaintiff through a letter of apology that must be published in three National dailies.” It is this judgment that the Appellant appealed against.
The background facts that led to the initiation of the action at the lower Court can be summarized thus: As a commercial transporter with a Volkswagen space bus, the Respondent was, on 4th July, 2011, hired by the 2nd and 3rd Appellants through their agents/crew members of the 1st Appellant to convey C-Way bottle water from Ajori market to Waziri Jetty, Apapa, Lagos, where the 1st Appellant anchored. He conveyed the crew members and their goods to the Jetty.
As he was moving the bottle water close to the 1st Appellant on the request of the crew members for his assistance, an explosion occurred caused by the breakage of 1st Appellant’s hose, which hit and severely injured him. Instead of rendering help to him the crew members on board the 1st Appellant only threw down a stretcher to help move him away from the scene of the accident. The 1st Appellant hurriedly sailed out of the Jetty to avoid arrest, leaving the Respondent in pain and in the pool of his blood.
The General Hospital, Apapa, where he was rushed to, referred him to Lagos Island General Hospital as the severity of the injury was beyond what they could handle. The Hospital recommended the amputation of his right leg but he opted to go to a traditional Orthopaedic home when he could not afford the cost of surgery at the Hospital. During the nine months period of treatment, the Appellants neither rendered any assistance to the Respondent nor send a goodwill message to him.
His attempt to see the 3rd Appellant with the Doctor’s report was blocked, just as his letter to the Appellants was not responded to, hence his resort to Court action. After the filing of the Notice of Appeal and the transmission of Record, learned counsel for the parties filed and exchanged written Briefs of Argument in compliance with the rules of this Court, as follows: 1.
The Appellants’ Brief of Argument settled by Sylva Ogwemoh, SAN, with Wahab Dako, Adeniyi Joshua and Chibueze Muobuikwu but signed by Wahab Dako, was filed on 14/03/2018 but deemed to have been properly filed and served on 06/07/2021. 2. The Respondent’s Brief of Argument settled by Augustine Idume Chukwu was filed on 02/07/2021 but deemed properly filed and served by an order of Court made on 12/05/2022. 3. The Appellants’ Reply Brief, signed by Wahab Dako, was filed on 19/07/2021 but deemed properly filed and served on 12/05/2022.
When the appeal was called for hearing on 12/05/2022, learned counsel for the Appellant, Wahab Dako with Ruth Nwankwo, adopted the Appellant’s Brief of Argument and the Reply Brief as representing the Appellants’ argument in the appeal in urging the Court to allow the appeal. On behalf of the Respondent, A.I. Chukwu, Esq., adopted the Respondent’s Brief of Argument and urged the Court to dismiss the appeal.
In the Appellants’ Brief, four issues were distilled for the determination of the appeal, couched thus: “(i) Whether or not the learned trial Judge was right in assuming jurisdiction and competence to hear and determine the suit before it even when it was clear the Appellants were not served with the originating process of the suit.
This issue arose from Ground 1 of the Notice of Appeal. (ii) Whether or not the learned trial Judge was right in holding that the Appellants were liable to the Respondent in negligence and thereby entering judgment against the Appellants for an act that was not committed by the Appellants.
This issue arose from Grounds 2 and 5 of the Notice of Appeal. (iii) Whether or not learned trial Judge was right in entering judgment against the 2nd and 3rd Appellants, who from the evidence before the Court, were not the owners of the 1st Appellant and had no interest in the 1st Appellant, which the Respondent alleged caused injury to him.
This issue arose from Ground 3 of the Notice of Appeal. (iv) Whether or not awarding the sum of ₦100,000,000.00 (One Hundred Million Naira) as general damages against the Appellants and in favour of the Respondent was not perverse, unjustified, unwarranted and ridiculous. This issue arose from Ground 4 of the Notice of Appeal.” Like the Appellant, the Respondent also crafted four issues for determination in the following words: For all intents and purposes, the issues formulated by the Respondent is not dissimilar to that of the Appellant.
The only difference is that each party tailored the construction of the issues to suit their stand and what they want before the Court. In substance however, the issues are the same. For this reason, I will adopt the issues submitted by the Appellant in the resolution of this appeal. Arguments on Issue 1 Learned counsel for the Appellant submitted that the learned trial Judge erred in law when he assumed jurisdiction and competence to hear and determine the suit before him in spite of the fact that the Appellants were not served with the originating process of the suit.
He submitted that the law is trite that jurisdiction is the very basis upon which any Court or tribunal can try a case because any trial conducted without jurisdiction is a nullity. He posited that the law is settled that originating process in a suit must be served on the Defendant(s) personally and that failure to serve the originating process in a suit on the Defendant(s) robs the Court of the jurisdiction to hear the suit and it is not enough that the Defendants allegedly knew or were informed that a suit has been pending against them. He referred to the cases of Estate of Late Chief H.I.S.
Idisi vs. Ecodril (2016) 12 NWLR (Pt. 1527) 355 AT 376, Alhaji Mohammed vs. Chief Babalola, SAN (2012) 5 NWLR (Pt. 1293) 395 AT 434, Nkpornwi vs. Ejire (2009) 9 NWLR, (Pt.1145) 131 AT 169, Ononye vs. Chukwuma (2005) 17 NWLR, (Pt. 953) 90 at 114-115.
It was contended that in the instant case, the 1st Appellant was not served personally with the originating process in respect of this suit, while the 2nd and 3rd Appellants were not served at all. The law is also trite that affidavit of service is the conclusive evidence of service where a question of service is in issue – Estate of Late Chief H.I.S. Idisi v. Ecodril supra at 379. Learned counsel maintained that the affidavit of service deposed to by one Mr.
Efik Dennis, a Bailiff of the Federal High Court, on 29th April, 2014 at page 90 of the Record of Appeal shows that the originating process in respect of this suit was only served on one Abubakar Mohammed (AGM) who was not a party to the suit and does not represent or act for any of the Appellants in the suit at the lower Court.
He noted that the said affidavit of service was the only proof of service of the originating process. He contended that by the nature of the suit before the lower Court, the 1st Appellant, which is a Vessel, ought to have been served in compliance with the provision of Order 6 Rule 1 of the Admiralty Jurisdiction Procedure Rules, 2011; the 2nd Appellant, a limited liability company, ought to have been served in compliance with the provision of Section 78 of the Companies and Allied Matters Act, 2004 and Order 6, Rule 8 of the Federal High Court (Civil Procedure) Rules, 2009 while the 3rd Appellant, who is an individual, ought to have been served personally in compliance with the provision of Order 6, Rule 2 of the Federal High Court (Civil Procedure) Rules, 2009.
It was submitted that in view of the fact that the suit before the trial Court was an action in rem and the 1st Appellant was a Vessel, the Writ of Summons ought to be served on the Vessel or on the master of the Vessel. It was further argued that the affidavit of service did not disclose whether Abubakar Mohammed who was served with the originating process was an Assistant General Manager of the 2nd Appellant or an officer or employee of the 2nd Appellant at all.
Reference was made to the affidavit in support of the Appellants’ Motion on Notice dated 27th April, 2015, at page 88 of the Record wherein the Appellants deposed to the fact that Abubakar Mohammed was not an officer of the 1st and 2nd Appellants.
It was noted that the Appellants’ preliminary objection challenging the jurisdiction of the trial Court on the ground that the originating process of the Court was not served on the Appellants, was overruled by the lower Court on the ground that it was an abuse of Court process and that the Appellants having taken steps by filing Court process were deemed to have waived their right of service.
He submitted that even though all the Appellants entered conditional appearance, the law is trite that service of originating process is the determinant of Court’s jurisdiction over a matter and not the entering of conditional appearance by a Defendant, relying on the cases of Guinness (Nig) Plc vs. Ufot (2008) 2 NWLR (Pt. 1070) 52 AT 78-80, Carribean Trading & Fidelity Corp vs. NNPC (1991) 6 NWLR (Pt. 197) 352.
Counsel faulted the finding of the learned trial Judge in holding that it was too late in the day for the Appellants to contend that they were not served with the originating process in the suit because their earlier application seeking the striking out of the suit on the ground that it was statute barred was dismissed and therefore the application challenging the service of the originating processes constitute an abuse of Court process.
On the lower Court findings at pages 311 and 312 of the Record that the 2nd and 3rd Appellants having not filed any defence to the claims of the Respondent despite being represented by the same counsel that represented the 1st Appellant, were deemed to have admitted the claims of the Respondent, learned counsel submitted that the position of the learned trial Judge is in sharp contrast with the position of the law that the issue of jurisdiction is so vital that it can be raised at any stage of a case be it at trial, on appeal to Court of Appeal or to the Supreme Court.
He referred to the cases of Ajayi vs. Adebiyi (2012) 11 NWLR (Pt. 1310) 137 SC at 181; Odofin vs. Agu (1992) 3 NWLR (Pt.229) 350, and submitted that the fact that the Appellants were represented in Court does not change the age-long position of the law that each of the Appellants must be properly served lest the Court would be stripped of its jurisdiction. He further submitted that the non-service of the originating Court processes on the Appellants is a breach of the Appellants (especially the 2nd and 3rd respondents) right to fair hearing.
After quoting the dictum of Nweze, JSC, in Estate of Late Chief H.I.S. Idisi v.
Ecodril (supra) at pages 376-377 of the report, counsel urged the Court to resolve the first issue for determination in favour of Appellants and hold that the proceedings and judgment of the lower Court were done without jurisdiction and therefore null and void. On his part, learned counsel for the Respondent, Augustine Idume Chukwu submitted that considering the affidavit of service of the originating processes on the Appellants vis-a-vis the subsequent steps taken by them in the proceedings of the lower Court, the learned trial Judge rightly assumed jurisdiction and competence to hear and determine this suit.
He submitted that the Appellants’ allegation of non-service of the originating process in this suit after participating fully in the proceedings of the lower Court and defended this suit on the merit is ludicrous and absurd. He noted the 1st Appellant’s admission in paragraph 3 of an affidavit in support of a motion dated 10/02/2016, contained at page 146 of the Record, that the said originating process was served on her on the 28/04/2014.
He also referred to the affidavit of service of the originating processes as contained in pages 90-91 of the Records of Appeal stating that it was served on the Appellants at their registered address at 31B, Marine Road, Apapa, Lagos, by a bailiff of the trial Court wherein the Assistant General Manager of the 2nd Appellant, who in all ramifications qualifies as the principal officer of the latter, acknowledged receipt of the processes on behalf of the Appellants.
Learned counsel submitted on the settled position of the law that a party who intends to contest service of originating process is to do so at the commencement of the suit before taking steps in the proceedings, and that where he fails to do that, he cannot be heard to question the said service thereafter. He referred to the cases of Saude v. Abdullahi (1989) LPELR – 3017 (SC) (Pp. 22, paras B-G); Zakirai v. Muhammad & Ors (2017) LPELR – 42349(SC) (Pp. 45-47, paras D-E); Obadina & Ors v.
Fasoyinro (2017) LPELR – 42182(CA), and argued that the Appellants belatedly raised the issue of non-service via a Motion on Notice dated 27/04/2015 which the trial Court dismissed upon finding on one hand that the relief sought by Appellants in the said motion is incompetent and on the hand that the Appellants conduct in bringing the motion itself amounts to an abuse of Court process given the prior steps the Appellants had taken in the proceedings of the Court.
Learned counsel observed that the 1st, 2nd and 3rd Appellants in this suit were jointly sued over the same set of claims and they jointly engaged the same counsel to represent them. The said counsel entered a conditional appearance on behalf of all the Appellants and contended that the suit had become statute barred via a Notice of Preliminary Objection dated 26th of August, 2014 filed by the 1st Appellant, which was duly heard and subsequently dismissed by the trial Court.
Also, on account of the said originating process served on the Appellants, the 1st Appellant filed a Statement of Defence on 26/08/2014, as contained at pages 37-50 of the Record of Appeal; while the 2nd and 3rd Appellants refused to file defence but participated in the proceedings throughout and even jointly filed a final written address at the conclusion of hearing as well as reply on points of law. The Court was urged to discountenance the argument of the Appellants on the question of service as same is not tenable. Counsel argued that the case of Estate of Late Chief H. I. S. Idisi v.
Ecodril (supra), heavily relied upon by the Appellant does not apply to the instant appeal as the facts are not the same. Counsel further submitted, with the aid of Chief Abe & Anor v. U. B. N. Plc (2005) All FWLR (Pt. 291) 1727 at 1738 and Mmaduagwu & Anor v. Ifeanyi & Anor (2016) LPELR 41012 (CA), that technical justice is no justice and that where a party is made aware of proceedings then he cannot complain of lack of service. He urged the Court to resolve this issue in favour of the Respondent.
Arguments on Issue 2 Appellant’s counsel submited that the learned trial Judge erred in law when he held the Appellants liable to the Respondent in negligence, when from the evidence before the trial Court, the ingredients or elements of negligence were not established against the Appellants and the accident that caused injury to the Respondent was not caused by the Appellants. Relying on Hamza vs. Kure (2010) 10 NWLR (Pt. 1203) 630 AT pages 649-650; U.T.B. (Nig.) vs. Ozoemena (2007) 3 NWLR (Pt. 1022) 448 AT 465; Orhue vs.
NEPA (1998) 7 NWLR (Pt. 557) 187, he submitted that the law is settled that to succeed in an action in negligence, the Plaintiff has to establish three major elements, which must exist conterminously, to wit:- (a) That the defendants owe him a duty of care; (b) That there is a breach of that duty; and (c) That an injury to the Plaintiff has occurred, between which and the breach of duty a causal connection must be established.
It was further submitted that success in an action in negligence is a matter of fact to be proved by evidence and not by mere hearsay and speculations, citing the case of F.A.A.N. vs. W.E.S. (Nig.) Ltd (2011) 8 NWLR (Pt. 1249) 219 AT 251, Kabo Air Ltd. vs. Mohammed (2015) 5 NWLR (Pt. 1451) 38 AT 65-66. Again, that for a claim in negligence to be sustained against the Appellants herein, it is not enough to show that the Respondent sustained an injury, but the injury must be tied to the action of the Appellants.
Learned counsel also argued that for a Plaintiff to succeed, every allegation or claim of negligence must be particularized and specifically proved – Kabo Air Ltd vs. Mohammed (supra) AT 65-66, U.T.B Plc Vs. Ozoemena (supra), Dare vs. Fagbamila (2009) 14 NWLR (Pt. 1160) 177, Ojo vs. Gharoro (2006) 10 NWLR (Pt. 987) 173.
It was argued that the Respondent did not particularize in his Statement of Claim the alleged negligence committed by the Appellants against him as his story was full of hearsay, an issue which was raised in the final address of the 1st Appellant but was not considered by the trial Court. He posited on the authorities of Kakih vs. P.D.P. (2014) 15 NWLR (Pt. 1430) 374 AT 418-419; Ojukwu vs. Yar’adua (2009) 12 NWLR (Pt. 1154) 50 AT 129, that hearsay evidence cannot be ascribed any probative value.
Appellants contended that the Respondent’s injury was not caused by the 1st Appellant but by a hose hired by the Charterers (Euroafric Oil and Coastal Services Limited) as testified to by DW1.
He submitted that the accident occurred at the shore and not on board the Vessel and the only connection the Vessel had with the accident was that the Vessel berthed in the water at the jetty where the accident occurred, and nothing more. It was further submitted for the Appellants that by virtue of the provisions of Sections 135 and 136 of the Evidence Act, 2011, the burden of proving the existence of any fact in issue is on the party who asserts it and therefore, the Respondent had the primary burden to establish the facts in support of his case before Judgment could have been entered in his favour, which is that the injury he sustained was caused by the Appellants and that the Appellants were negligent.
He made reference to Hamza vs. Kure (2010) 10 NWLR (Pt. 1203) 630 AT 649, A.M. Co (Nig.) Ltd vs. Volkswagen (Nig.) Ltd. (2010) 7 NWLR (Pt. 1192) 97 AT 118; U.T.B. (Nig.) vs. Ozoemena (supra) AT 465, Hilary Farm Ltd & Ors. vs. M/V Mahtra & Ors. (2007) 14 NWLR (Pt.1054) 210 at 236. It was argued that the trial Court did not resolve the issue raised by the Appellants in their final written address as to whether the Respondent has established a claim of negligence against the Appellants.
Rather, the learned trial Judge glossed over the issue and held at page 312 of the Record that negligence in the instant case was that of res ipsa loquitur, a finding which is erroneous and misconceived, as the Respondent never pleaded res ipsa loquitur in his Statement of Claim and also did not express any uncertainty as to the cause of his injury, which he said was a hose. Reference was made to the case of P.S.H.S.M.B. vs.
Goshwe (2013) 2 NWLR (Pt. 1338) 383 AT 397, where the Supreme Court held that the doctrine of res ipsa loquitur is applicable when the facts stand unexplained and therefore the natural and reasonable, not conjectural inference from the facts shows that what had happened is reasonably to be attributed to some act of negligence, on the part of somebody. He cited Julius Berger (Nig.) Plc vs. Nwangwu (2006) 12 NWLR (Pt. 995) 518 at 540, where it was held that the doctrine of res ipsa loquitur is not applicable when the cause of the accident is known.
Counsel drew the Court’s attention to the 1st Appellant’s defence when DW1 explained that the hose that injured the Respondent was not from her, but was obtained and used by Euroafric Oil and Coastal Services Limited to flush their pipes. He expressed surprise how the learned trial Judge arrived at his findings that proof in the case was that of res ipsa loquitur and that it was not discharged by the Appellants.
It was contended that the position of the law has always been that Courts have powers only to the extent of the claims, facts and evidence presented before them by the parties and have no power to make a case for a party different from what the party has brought to the Court, relying on Union Bank of Nigeria Plc v. E. D. Emole (2001) 12 S.C. (Pt. 1) 106; (2001) LPELR-3392 (SC).
On the argument of decision of the lower Court that the Appellants, who alleged that the hose that cause injury to the Respondent does not belong to them, ought to have commenced third party proceedings against Euroafric Oil and Coastal Services Limited, the owner of the hose, learned counsel for the Appellants submitted that the Appellants could not have properly commenced third party proceedings against Euroafric Oil and Coastal Services Limited because the Appellants did not contend that they had any claim, remedy, relief, contribution or indemnity whatsoever against Euroafric Oil and Coastal Services Limited.
He refered to the cases ofLabode vs. Otubu (2001) 7 NWLR (Pt. 712) 256 AT 290; NNPC v. Zaria & Anor (2014) LPELR-22362(CA), and urged the Court to resolve the second issue in favour of the Appellants. Arguing contrariwise, learned counsel for the Respondent maintained that the lower Court was justified in invoking the doctrine of res ipsa loquitur to find the Appellants negligent in relation to the incident of 04/07/2011 which resulted in the severe injuries inflicted on the Respondent. He submitted on the authorities of Ibekendu vs. Ike (1993) LPELR – 1390 (SC) and Agip (Nig) Plc vs.
Udom Ossai (2018) LPELR- 44712 (CA), that the doctrine of res ipsa loquitur and particulars of negligence need not be specifically pleaded. It was argued that the conditions for the application of the doctrine of res ipsa loquitur as enunciated in the same case of P. S. H. S. M. B. v. Goshwe (2013) 2 NWLR (pt. 1338) 383, cited by the Appellants, are abundantly present in the instant case through the evidence of PW1 and PW2 on how a hose from the 1st Appellant’s ship burst and shattered the Respondent’s right leg, causing him permanent disability.
It was further argued that there is nothing hearsay about the evidence led by the Respondent, vide pages 7-9 and 10-13 of the Record, as both the Respondent himself and PW2 are eye witnesses to the bursting of the hose from the Vessel. Learned counsel submitted further that the law is trite that where the doctrine of res ipsa loquitor is applicable, the burden of proof is on the defendant to establish by credible evidence that the injury and damages suffered by the complainant was not occasioned by the negligent act or omission of the defendant.
In the instant case, according to the Respondent, the Appellants failed completely to discharge that burden of proof as the 2nd and 3rd Appellants who were the owners and/or managers of the 1st Appellant by virtue of having possession and control of the latter at the material time the accident occurred, did not even file any defence to dispute the Respondent’s averments as contained in the Statement of Claim or led any shred of evidence whatsoever in rebuttal of the evidence also led by the Respondent. He referred to the cases of EMODI V. EMODI (2015) 2 NWLR (PT. 1443) 201-410 (P. 344, PARAS.
B-C); DONALD V. SALEH (2015) 2 NWLR (PT.1444) 411-624 (P.593-594, PARAS. G-A) and submitted that the refusal of the 2nd and 3rd Appellants to file a defence amounts to an admission of the Respondent’s claim.
In view of the evidence of DW1 at page 46 of the Record that the 1st Appellant was ‘duly equipped to undertake discharge of cargo’, the Appellants’ argument in their brief that the 1st Appellant did not have a hose with which cargo is dischargeable, is inconsistent with the evidence of DW1, which rendered the claim that the 1st Appellant did not have a hose not only as an afterthought but an unpleaded fact which goes to no issue and should be discountenanced – ISHENO vs. JULIUS BERGER (NIG. PLC. (2008) 6 NWLR (Pt. 1084) 582 AT 589; OLUYEDE vs.
ACCESS BANK PLC (2015) 17 NWLR (Pt. 1489) 445 AT 608, TATU vs. THE ESTATE OF ALHAJI ADAMU (2015) 13 NWLR (Pt. 1476) 229. The Court was urged to resolve this issue in favour of the Respondent.
Arguments on Issue 3 The Appellants submitted on this issue that even if the 1st Appellant is found to be liable in negligence to the Respondent, such liability would not extend to the 2nd and 3rd Appellants because the 2nd and 3rd Appellants do not have any connection with the 1st Appellant, referring to Exhibit D2, the Certificate of Registration of the 1st Appellant with NIMASA which shows that the 1st Appellant was owned by Sea Pioneer Limited, the employer of DW1, a fact which was not rebutted or contradicted by the Respondent and should therefore be taken as correct.
It was further submitted that assuming the 3rd Appellant was the Managing Director and the person running the Sea Pioneer Limited, which owns the 1st Appellant, that fact does not make the 3rd Appellant liable to the Respondent in the instant case as the 1st Appellant has distinct legal personality separate from even its promoters by virtue of section 37 of the Companies and Allied Matters Act (CAMA), Cap. C20 LFN, 2004 and the case of Salomon Vs. Salomon (1897) AC 22.
Learned counsel submitted, relying on the evidence of DW1 who was on the Vessel as Supercargo on the date of the incident, that the 2nd and 3rd Appellants had no interest whatsoever in the 1st Appellant, but that the 1st Appellant was owned and controlled by Sea Pioneer Limited, a company he worked with. He faulted the lower Court for ignoring the overwhelming evidence of ownership of the 1st Appellant by Sea Pioneer Limited (both oral and documentary), especially when there was no evidence to indicate that the 2nd and 3rd Appellants chartered the 1st Appellant at the relevant time.
In view of the uncontradicted evidence that the 2nd and 3rd Appellants do not own shares in the 1st Appellant at all and are not the owners of the 1st Appellant, the Court was urged to hold that the lower Court was wrong in entering Judgment against the 2nd and 3rd Appellants, who were not the owners and had no interest in the 1st Appellant Vessel, which allegedly caused injury to the Respondent.
Learned counsel observed that though the condition of the Respondent is pathetic and ordinarily attracts a lot of emotions, the trial Court ought not to have been carried away by the emotional hue of this case in entering Judgment in favour of the Respondent against the Appellants, even when there was no cogent evidence linking the Appellants with the injury sustained by the Respondent. Rather, the judgment delivered by the trial Court was borne out of sentiments because the learned trial Judge did not dispassionately consider the overall evidence before him in deciding the matter before him.
Referring to the cases of Suleman vs. C.O.P., Plateau State (2008) 8 NWLR (Pt. 1089) 298 AT 322-323 and Abubakar vs. Yar’Adua (2008) 19 NWLR (Pt. 1120) 1, he submitted that the law is settled that sentiments and emotions do not have a place in judicial determinations because all the parties before the Court are entitled to justice.
The Court was prevailed upon to hold that the 2nd and 3rd Appellants were not the beneficial owners of the 1st Appellant and to resolve this issue in favour of the Appellant. On the part of the Respondent, counsel insisted that the decision of the lower Court that the 2nd and 3rd Appellants are the beneficial owners of the 1st Appellant is in line with the uncontroverted pleading and undisputed evidence before that Court.
He referred to the pleading of the Respondent on how he was hired by the agents/crew of the Appellants to convey bottle water to the Waziri jetty where the 1st Appellant anchored, and how the said pleading was not controverted by the 2nd and 3rd Appellants who did not file a defence to the action.
It was submitted that both in their written statements on oath and under cross-examination, PW1 and PW2 maintained that throughout the period the Respondent dealt with the Appellants, the crew members of the 1st Appellant ship had always adorned identification cards of the 2nd Appellant and also that the 3rd Appellant was always on ground at the said jetty on inspection of the 1st Appellant whenever the latter was berthed there, without rebuttal evidence. The cases of OKENE vs. ORIANWO (1988) 9 NWLR (Pt.566) 408; MORENIKEJI V. ADEGBOSIN (2003) 8 NWLR (Pt. 823) 612; IKPANG vs.
EDOHO (1978) ALL NLR 196, were cited to support the legal proposition that uncontroverted averment contained in a pleading is deemed admitted and needs no further proof. The Respondent urged the Court to note the settled position of the law that where no defence has been filed to a plaintiff’s claim, the defendant will be deemed to have admitted the claim or relief in the statement of claim and the trial Court’s only alternative in the circumstance is to give judgment for the plaintiff, citing the cases of EMODI vs. EMODI (2015) 2 NWLR (Pt. 1443) 201-410 AT 344; DONALD vs.
SALEH (2015) 2 NWLR (Pt.1444) 411-624 AT 593-594. Respondent also contended in line with Section 2 (3) (d) of the Admiralty Jurisdiction Act, 1991 that one need not be the registered owner of a ship or have a share interest in a ship before he can be sued for wrongful acts of the ship as maritime claims for personal injury are maintainable not only against the registered owner or charterer of a ship but also against persons in possession of the ship.
He submitted that the 2nd and 3rd Appellants were not only in possession of the 1st Appellant, the wearing of the Identification Card of the 2nd Appellant company by the crew members on board the 1st Appellant ship and the regular inspection of the latter by the 3rd Appellant during the period the Appellants transacted with the Respondent as contained in the Respondent’s uncontroverted averments and testimonies all go to show that the 2nd and 3rd Appellants were also in control of the 1st Appellant. Reliance was placed on THE M.V. “S. ARAZ” vs.
SCHEEP (1996) 5 NWLR (Pt.447) 128-254 AT 220; ALLIED TRADING CO. LTD. vs. G.B.N LINE (1985) 2 NWLR (Pt.5) 74 AT 81-82. He urged the Court to resolve this issue in favour of the Respondent. Arguments on Issue 4 This issue challenges the quantum of damages awarded to the Respondent.
The Appellants submited that even if they were liable in negligence to the Respondent as held by the honourable Court, the award of a whooping sum of N100,000,000.00 (One Hundred Million Naira) as general damages against the Appellants by the trial Court, in addition to directing the Appellants to bear the cost of carrying out of adequate surgery on the Respondent at a reputable hospital together with the publication of apology to the Respondent in three national dailies, was most perverse, unwarranted and unjustified.
He urged that this is a good instance where this Court should interfere with the award, otherwise, the Appellants would be made to suffer gross injustice as a result of the wrong exercise of the trial Court’s discretion in making the award of general damages, citing United Bank Plc V. BTL Industries Limited (2004) 18 NWLR (pt. 904) 108 at 236 -237; British Airways vs. Atoyebi (2014) 13 NWLR Part 1424, 253 AT 287-288; Spring Bank Plc. vs.
Dokkin Ventures Nigeria Limited (2012) LPELR – 7983 (CA), where the Court listed the instances in which the appellate Court will interfere with the award of general damages.
Counsel for the Appellants insisted that in the instant case, the exercise of the discretion of the trial Court in awarding a whooping sum of N100,000,000.00 (One Hundred Million Naira) as general damages against the Appellants in addition to directing the Appellants to bear the cost of carrying out of adequate surgery on the Respondent was most perverse, unwarranted, unjustified and an outright disregard of legal principles.
It was further argued that the totality of the evidence before the trial Court was not enough to have suggested that the probable loss suffered by the Appellant as a result of the accident would amount to a whooping sum of N100,000,000.00 (One Hundred Million Naira).
Counsel submitted that the lower Court took into consideration irrelevant matters in the award of damages as a reading of the judgment would reveal that the learned trial Judge resorted to applying sentiments in making the award against laid down principles of law, hence the amount awarded was ridiculously high. This Court was called upon to resolve the fourth issue in favour of the Appellants and intervene by setting aside the award of the sum of N100,000,000.00 (Hundred Million Naira) as general damages in favour of the Respondent in order to prevent injustice to the Appellants.
Finally, the Court was urged to set aside the judgment of the Federal High Court, Lagos Division, in Suit No: FHC/L/CS/1612/2013 delivered on 07/07/2017 for being grossly perverse, erroneous, unjustifiable and outrageous.
On behalf of the Respondent, it was submitted on this 4th issue that the Appellants have not shown sufficient reasons to warrant interference with the aforesaid award made by the learned trial judge, and that contrary to the Appellants’ arguments in paragraphs 7.1-7.6 of the Appellants’ Brief, the damages awarded against the Appellants is warranted, justified and not perverse or erroneous given the peculiar circumstances of this case which is distinguishable from the facts in British Airways v. Atoyebi (2014) 13 NWLR (Pt.1424), cited by Appellants in support of their argument on this issue.
Learned counsel highlighted the distinguishing features of the two cases at paragraphs 7.3-7.6 of the Respondent’s Brief and argued strongly that the Respondent deserve every kobo of the damages awarded him to assuage his pain, suffering and psychological torture; and that the call by the Appellants on this Court to set aside the said award speaks volume of the Appellants’ insensitivity to the Respondent’s plight. He prayed the Court to resolve this issue in favour of the Respondent and uphold the findings of the lower Court in that regard.
On the whole, the Court was urged to dismiss the appeal and affirm the judgment of the lower Court. Appellants’ reply to some of the new issues raised by the Respondent would be addressed, where necessary, in the course of the resolution of issues in the appeal. Resolution of Issue 1 It has been a settled issue that service of originating processes on a Defendant is a fundamental condition precedent to the Court’s exercise of its jurisdiction to hear and determine any case.
Service of originating process is very crucial to the competence and indeed the jurisdiction of the Court because it is the foundation of the structure of litigation. It is a constitutional issue bordering on the principle of fair hearing. Where an originating process is not served on a Defendant or a Respondent in an appeal, the Court proceedings, including any judgment or decision resulting from such proceedings is rendered a nullity. See Ihedioha & Anor vs. Okorocha & Ors (2015) LPELR-40837 (SC) AT 69-70; Adegbola vs. Osiyi & Ors (2017) LPELR-42471 (SC) AT 18-19; Idisi vs.
Ecodril (Nig) Ltd & Ors (2016) LPELR-40438 (SC) AT 23-25; Fidelity Bank Plc vs. MT Tabora & Ors (2018) LPELR-44504 (SC). The essence of service of Court process is to adequately notify the person served or the defendant of the existence of the suit or claim against him to enable him defend same should he desire so to do. See Okoye & Anor vs. Centre Point Merchant Bank Ltd (2008) LPELR-2505 (SC).
The fundamental nature of service of Court process on parties is such that absence of it robes the Court of any jurisdiction that it would otherwise have had, because it is a condition precedent to the exercise of jurisdiction by Court. Authorities are legion on the point, that service of Court process on the opposing party is crucial and fundamental as it is the service of the process that gives the Court the jurisdiction and the competence to entertain and make pronouncement on such Court process. Without service, the jurisdiction of the Court cannot be activated with respect to such process.
Failure to serve process where service of the said is required is a failure which goes to the root of the adjudication process. The prominent exception to this rule is ex-parte application, where the opposing party is not expected to be put on notice. It is settled law that in proceedings where service of process is required, failure to serve process on the other party or parties is fatal to subsequent proceedings. Therefore, any proceeding that is conducted in the absence of service on the opposing party is a nullity.
This is because the Court would be bereft of the necessary vires to adjudicate and pronounce on the matter whose process has not been served. See Isijola vs. Ekiti State Micro Credit Agency (2014) LPELR-22708 (CA); Ahmed vs. Ahmed (2013) LPELR- 21143 (SC); SGBN Ltd vs. Adewunmi (2003) LPELR- 3081 (SC); Mark vs. Eke (2004) LPELR-1841 (SC); Tsokwa Motors (Nig.) Ltd vs. UBA Plc (2008) LPELR-3266(SC); Ihedioha vs. Okorocha (2015) LPELR- 40837 (SC). In the case of Eimskip Ltd vs.
Exquisite Industries (Nig) Ltd (2003) LPELR-1058 (SC), Niki Tobi, JSC, had this to say on the effect of non-service of Court process: “Service is a pre-condition to the exercise of jurisdiction by the Court. Where there is no service or there is a procedural fault in service, the subsequent proceedings are a nullity ab initio. This is based on the principle of law that a party should know or be aware that there is a suit against him so that he can prepare a defence. If after service he does not put up a defence, the law will assume and rightly too for that matter, that he has no defence.
But where a defendant is not aware of a pending litigation because he was not served, the proceedings held outside him will be null and void. In the often cited case of Skenconsult (Nig.) Ltd. v. Ukey (1981) 1 S.C. 6, Nnnamani, JSC., relying on the English decision of Craig v. Kanseen (1943) 1 QB 256, held that failure to serve Court process goes to the issue of competence and jurisdiction of the Court and in such a case, the proceedings are a nullity and any orders made would also be nullities. In Oke v.
Aiyedun (1986) 2 NWLR (Pt. 23) 548, the Supreme Court referred to its earlier decision in Skenconsult and held that it is beyond question that failure to serve process where service of process is required is a failure which goes to the root of our conception of the proper procedure in litigation.” It has equally been held by the apex Court, times without number, that non-service of Court process on a party, where service is required, amounts to breach of the party’s right to fair hearing. See Emeka vs. Okoroafor (2017) LPELR-41738 (SC), Ihedioha vs. Okorocha (supra), Achuzia vs.
Ogbomah (2016) LPELR-40050 (SC); Okeke vs. Lawal & Ors (2018) LPELR-43920. In the recent case of Michael K. Aondoakaa, SAN vs. Emmanuel Bassey Obot (2021) LPELR-56605 (SC) AT 14-15, the Supreme Court, speaking through Kekere-Ekun, JSC, reiterated the trite principle in the following words: “It is well settled beyond any equivocation, that the service of an originating process on a named party, who ought to be served, is an indispensable aspect of any adjudication. It goes to the root of the Court’s competence and jurisdiction to entertain the suit.
Service of an originating process accords with the guarantee of the right to fair hearing as provided for in Section 36 (1) of the Constitution of the Federal Republic of Nigeria, 1999, as amended. It notifies the party of the institution of an action against him and affords him the opportunity, if he so desires, to defend the claim. Failure to serve an originating process renders the entire proceedings a nullity.
See Kida vs Ogunmola (2006) 13 NWLR (Pt. 997) 377, Obimonure vs Erinosho (1966) 1 ALL NLR 250; Skenconsult vs Ukey (1981) 1 SC 6 AT 26; Mgbenwelu vs Olumba (2016) LPELR-42811 (SC) AT 36-37 E -D.” In the instant case on appeal, the Appellants claimed that the 1st Appellant was not served personally with the originating process in respect of this suit, while the 2nd and 3rd Appellants were not served at all.
It was contended that by the nature of the suit before the lower Court, the 1st Appellant, which is a Vessel, ought to have been served in compliance with the provision of Order 6 Rule 1 of the Admiralty Jurisdiction Procedure Rules, 2011; the 2nd Appellant, a limited liability company, ought to have been served in compliance with the provision of Section 78 of the Companies and Allied Matters Act, 2004 and Order 6, Rule 8 of the Federal High Court (Civil Procedure) Rules, 2009; while the 3rd Appellant, who is an individual, ought to have been served personally in compliance with the provision of Order 6, Rule 2 of the Federal High Court (Civil Procedure) Rules, 2009.
It was submitted that in view of the fact that the suit before the trial Court was an action in rem and the 1st Appellant was a Vessel, the Writ of Summons ought to be served on the Vessel or on the master of the Vessel.
From the affidavit of service of the originating process domiciled at page 90 of the Record deposed to by one Efik Dennis, a Bailiff of the Federal High Court dated 29/04/2014, all the Appellants, then as Defendants, were served with the Writ of Summons and Statement of Claim through one Abubakar Mohammed, the Assistant General Manager, at 31B Marina Road, Apapa, Lagos, on 28/04/2014. The endorsement of the said Abubakar Mohammed is at page 91 of the Record. This is the only evidence of service of the originating process on the Appellants.
Interestingly, the address for service on all the Appellants was given as 31B, Marina Road, Apapa, Lagos. No issue was made of that address. None of the Appellants denied the said address. My noble lords, from the affidavit of service at pages 90-91 of the Record, it can superficially be said that there is no proof that the 1st and 3rd Appellants were properly served with the originating process as required by law.
Being a Vessel, service of Writ of Summons in an action in rem on the 1st Appellant, by virtue of Order 6 Rule 1 of the Admiralty Jurisdiction Procedure Rules, 2011, is to be done by affixing a sealed copy of the Writ to a mast or some other conspicuous part of the ship or by delivering same to the master of the ship. Neither of the stated method of service was employed by the Respondent in this appeal. There is no evidence in the printed Record to show that Abubakar Mohammed, the Assistant General Manager, who was served at 31B, Marina Road, Apapa, was the master of the 1st Appellant.
There is also no evidence on the Record, not even a claim by the Respondent, that the service was carried out by affixing the process on the 1st Appellant. On this score, I hold that the service of the originating process on the 1st Appellant was not made in accordance with the law and is therefore irregular.
With respect to the 3rd Appellant, the Statement of Claim described him at paragraph 4 as the Managing Director of the 1st Appellant. By the Rules of the Federal High Court, service of originating process on him ought to be personal, unless ordered otherwise by the Court. No such order was made by the lower Court and the 3rd Appellant was not personally served with the process in question.
Service of the originating process on the 3rd Appellant, through Abubakar Mohammed, the Assistant General Manager, did not accord with the requirement of the Rules governing personal service of originating process. Just like the service on the 1st Appellant, the service of the Writ of Summons on the 3rd Appellant is also irregular.
The 2nd Appellant is an incorporated company and the mode of service on companies are provided for in Section 78 of the Companies and Allied Matters Act (CAMA) as well as Order 6 Rule 8 of the Rules of the Federal High Court. One of the recognized modes of service of Court process on incorporated entities is by serving the process on a Principal Officer of a Company.
By all standard, an Assistant General Manager of a Company qualifies as a Principal Officer of such Company and therefore service of Court process on him qualifies as proper service under the provisions of the relevant enactment and Rules of Court just referred to, i.e., the CAMA and the Federal High Court Rules.
Now, the question is, as between the 1st and 2nd Appellant, who was Abubakar Mohammed serving as an Assistant General Manager? This question becomes germane when viewed against the fact that; (1) the address of all the Appellants is 31B, Marina Road, Apapa, Lagos; (2) Abubakar Mohammed signed for and collected the process on behalf of all the Appellants. If he was AGM for the 1st Appellant, the service is irregular, but regular if he was AGM for the 2nd Appellant.
However, there is nothing on the printed Record, particularly in the affidavit of service and the endorsement thereon at pages 90 & 91 of the Record, to show that Abubakar Mohammed was AGM for the 2nd Appellant. This Court cannot speculate as to who he was serving as between the 1st and 2nd Appellants, in the absence of material proof in that direction. Consequently, one can say without equivocation that the purported service of the originating process on the 2nd Appellant through one Abubakar Mohammed is irregular in law.
On the whole, based on my findings above, it is clear that the service of the originating process on all the Appellants is tainted with the toga of irregularity. The natural thing for me to do, having found that the service of the originating process on the Appellants did not comply with the requirements of the law as analyzed supra, is to set aside the said service and declare the proceedings and judgment of the lower Court a nullity. But there is more to that.
On taking a detour of the Record of Appeal, I found at pages 34-36 thereof, that all the three Appellants have entered conditional appearance on 26/08/2014. How all of them became aware of the action is not decipherable from the conditional appearance. That same date, the 1st Appellant filed a Statement of Defence with all the accompanying documents together with Notice of Preliminary objection on the ground that the action was statute barred. See pages 51-61 of the Record. The preliminary objection of the 1st Appellant was heard and dismissed by the lower Court on 19/03/2015.
Over a month thereafter, precisely on 27/04/2015, all the 3 Appellants filed a motion on notice seeking the dismissal or striking out of the suit on account of non-service of the originating process on them.
Among the Applicants in the motion is the 1st Appellant, who had not only filed a Statement of Defence to the suit, but also took further steps by filing application challenging the competence of the suit on account of statute of limitation, which was heard and dismissed. Again, the lower Court, at pages 106-108 of the Record, dismissed the motion holding same to be an abuse of Court process.
The 1st Appellant, in taking further steps in the proceeding, by filing an application to challenge the competence of the suit on ground other than want of proper service of the originating process, is deemed to have waived any irregularity that attended the service of the originating process on it.
The law is trite that a party who intends to contest service of originating process is obliged to do so at the commencement of the suit before taking steps in the proceedings, and where he fails to do so but decide to participate in the proceedings, he cannot be heard to question the said service thereafter. A party is deemed to have waived his right to challenge the propriety of service of originating process if he takes further steps and allows the proceedings to go on as if the right or priviledge never existed. See Ariori vs. Elemo (1983) SCNLR 1.
The 1st Appellant is estopped by operation of law from raising the issue of service having waived and forfeited it at the lower Court. A defendant will be held to have waived irregularity of service if he has taken a step such as entering appearance, filing defence and taking part in the proceedings. See Odu’a Investment Company Ltd vs. Talabi (1997) LPELR-2232(SC). This is exactly what the 1st Appellant in this appeal has done.
That is not all, in an affidavit filed in support of the 1st Appellant’s motion for extension of time to file its Statement of Defence sworn to by one Dennis Ogar on 19/02/2016 at pages 145-146 of the Record, the deponent alluded to the fact that the 1st Appellant was served with the originating process of the lower Court in the case now on appeal, when he stated at paragraph 3 of the affidavit thus: “I know that on 28th April, 2014, the Plaintiff/respondent served the 1st Defendant/Applicant with his Writ of Summons dated 20th November, 2013, Statement of Claim dated 19th November, 2013 together with the other accompanying process.”
This deposition, made on the authority of the 1st Appellant and her counsel, has swept the carpet off the feet of the 1st Appellant and exposed the futility of her attempt to deny service of the originating process. The deposition is an admission against interest and the 1st Appellant must cope and stand with it. While all these was going on, the 2nd and 3rd Appellants never filed a defence to the Respondent’s claim, even though the same counsel representing the 1st Appellant was the same counsel who filed a joint memorandum of conditional appearance for all the Appellants.
Interestingly, at the conclusion of trial, all the three Appellants filed an address titled: “DEFENDANTS’ FINAL ADDRESS” dated 10/03/2017, which occupies pages 216-232 of the Record, settled by Sylva Ogwemoh, SAN, FCIArb, (U.K.), Wahab Dako, Esq and Chibueze Muobuikwu, Esq as “Defendants’ Solicitors” but signed by Wahab Dako, Esq. Please note the position of the apostrophe on the word “Defendants”.
There is also a joint Reply filed on behalf of all the Appellants at pages 263-268 of the Record titled: “DEFENDANTS’ REPLY ON POINTS OF LAW TO THE PLAINTIFF’S WRITTEN ADDRESS” signed by their lead counsel, Sylva Ogwemoh, SAN, FCIArb, (U.K.) as Solicitor for all the Defendants.
All these goes to show clearly that even though the 2nd and 3rd Appellants failed to file a defence to the suit, they still proceeded to file joint final address, signifying their participation in the proceedings from the beginning to the end, starting with the filing of memorandum of conditional appearance and ending with a final address. These set of Appellants are, by their action, also caught by the doctrine of waiver.
With their active participation in the proceedings leading to the judgment against them, the 2nd and 3rd Appellants cannot now complain of lack of service of originating process. Issue 1 therefore stands resolved against the Appellants and in favour of the Respondent. Resolution of Issue 2 The main contentions of the Appellants under this issue are: i. The ingredients or elements of negligence were not established against the Appellants. ii. The accident that caused injury to the Respondent was not caused by the Appellants but by a hose belonging Euroafric Oil and Coastal Services Limited. iii.
The evidence led by the Respondent is based on hearsay and speculations. iv. Respondent has not proved that the injury he sustained was caused by the Appellants. v. Respondent ought to plead the particulars of negligence on the part of the Appellant for him to succeed, which he failed to. vi. Res ipsa loquitr, relied upon by the lower Court to find the Appellants negligent, is not applicable when the cause of the accident is known.
Black’s Law Dictionary, 8th Edition, defines negligence as the failure to exercise the standard of care that a reasonably prudent person would have exercised in a similar situation. It is any conduct that falls below the legal standard established to protect others against unreasonable risk of harm. It is a careless behaviour, lacking proper care and attention. Going down memory lane in the development of the common law tort of negligence, Muhammad, JSC, (now CJN), in the case of Okwejiminor vs. Gbakeji & Anor (2008) LPELR-2537 AT 50-51, said: “Alderson B, in the old case of Blyth v.
Birmingham Waterworks Co. (1856) 11 EXCH. 781 at 784, defined negligence as follows: “Negligence is the omission to do something which a reasonable man, guided upon those considerations which ordinarily regulate the conduct of human affairs, would do, or doing something which a prudent and reasonable man would not do.” Seventy-eight years thereafter, Lord Wright had this to say in defining negligence: “In strict legal analysis, negligence means more than heedless or careless conduct, whether in omission or commission.
It properly connotes the complex concept of duty, breach and damage thereby suffered by the person to whom the duty was owing.” See the case of Lochgelly Iron and Coal Co. v. M’mullan (1934) A.C. 1 at P. 25. The latter definition spells out for us the three basic components of the torts of negligence: [a] duty of care [b] breach of the duty of care [c] damage caused by the breach.” See also Rabiu Hamza vs. Peter Kure (2010) LPELR-1351.
The breakdown from the above passage is that negligence is the breach of legal duty of care owed by the Defendant, which results in damage or injury to the Plaintiff. Therefore, the ingredients of the tort of negligence are (a) a legal duty owed to the Plaintiff by the Defendant to exercise care within the scope of his duty; (b) the breach of the said duty; and (c) the consequential damage or injury caused to the Plaintiff. For a Plaintiff to succeed in a claim founded on negligence, these three ingredients must be proved on preponderance of evidence.
The most important of the ingredients is the prove of duty of care. How does a duty of care arise? It arises where there is sufficient proximity between the Plaintiff and the Defendant such that the Defendant ought to have the Plaintiff in contemplation in the act complained of. In determining the proximity that would create legal duty, Lord Atkins developed the formular in the case of Donoghue vs. Stevenson (1932) AC 562, in his now famous dictum, as follows:
“The rule that you are to love your neighbor, becomes, in law, you must not injure your neighbor. Who then in law is my neighbor? The answer seems to be persons who are so closely and directly affected by my act that I ought reasonably to have them in contemplation as being so affected when I am directing my mind to the acts or omissions which are called in question.”
The duty of care is said to exist where there is sufficient relationship of proximity as between the Defendant and the Plaintiff who suffered the damage or injury, such that a reasonable man can conclude that carelessness on the part of the Defendant likely caused the damage. Still on how to establish the duty of care, Pats-Acholonu, JSC, observed as follows: “I believe that in the course of clearly understanding the nature of the duty of care in the tort of negligence, the lucid restatement of the law by Lord Willberforce in Ann v.
Merton London Borough Council (1978) AC 728 is worthy of mention. In that case he said; “Through the trilogy in this house in Donoghue v. Stevenson (1932) A.C. 562, Hedley Byrne v. Hellen (1964) A.C. 465, Dorset Yacht Club v. Home Office (1976) A.C. 1004, the position has now been reached that in order to establish that a duty of care arises in a particular situation, it is not necessary to bring the facts of that situation within those of previous situations in which a duty of care has been held to exist.
First, one has to ask as between the alleged wrong doer and the person who has suffered damage if there is a relationship of proximity or neigbourhood that in the reasonable contemplation of the former, carelessness on his part may be likely to cause damage to the later in which case a prima facie duty of care arises.” In the instant case on appeal, the case of the Respondent is that he was, on 4th July, 2011, hired by the 2nd and 3rd Appellants through their agents/crew members of the 1st Appellant, who were wearing the ID card of the 2nd Appellant, to convey C-Way bottle water from Ajori market to Waziri Jetty, Apapa, Lagos, where the 1st Appellant anchored.
He conveyed the crew members and their goods to the Jetty. The 1st Appellant was then discharging fuel through a hose. As he was moving the bottle water close to the 1st Appellant on the request of the crew members for his assistance, an explosion occurred caused by the breakage of 1st Appellant’s hose, which hit and severely injured him.
Instead of rendering help to him the crew members on board the 1st Appellant only threw down a stretcher to help move him away from the scene of the accident, and the 1st Appellant hurriedly sailed out of the Jetty to avoid arrest, leaving the Respondent in pains and in the pool of his blood. None of the crew members/agents of the Appellants who hired the Respondent to carry bottle water to the Waziri Jetty and help them move the water near the 1st Appellant, was called to testify with a view to denying that the Respondent was on the Jetty and near the 1st Appellant on their invitation.
The cross-examination of the Respondent as PW1 and his other witness as PW2 by the Appellant’s counsel did not alter or contradict their material evidence-in-chief. By the doctrine of foreseeability and proximity, the 1st Appellant, under the ownership and/or control of the 2nd Appellant, whose Managing Director is the 3rd Appellant, owed a duty of care in the course of discharging her cargo, to ensure that other users of the Waziri Jetty are not harmed by her operation.
There is no doubt that as someone who conveys the members of the crew of the 1st Appellant to the Waziri Jetty, where the 1st Appellant anchored, and assisted them in moving the bottle water near the 1st Appellant, the Respondent is owed a duty of care by the 1st Appellant in the course of her operation at the Jetty. It is the duty of the 1st Appellant to ensure that safety standards are maintained in all facets of her operation at all times.
The bursting or breaking of the hose used in discharging the cargo is evidence of negligence on the part of the 1st Appellant to ensure high safety standards in/during the use of her facilities. Appellants argued that they were not responsible for the Respondent’s injury which was caused by the bursting of the hose as the hose in question does not belong to the 1st Appellant but to a company called Euroafric Oil and Coastal Services Limited. This argument is unconvincing.
The hose that broke or burst and injured the Respondent was affixed to the 1st Appellant and it is the channel by which the 1st Appellant discharges her cargo. In the circumstance of this case, who owns the hose or how the hose was procured is immaterial as long as it was affixed to the 1st Appellant in the course of 1st Appellant’s operation. That is the only thing the Respondent knows and the Appellants have not denied that the hose was used in discharging the cargo of the 1st Appellant. The Appellants also contended that the Respondent’s evidence was based on hearsay and speculation.
I have consulted the Record to see if the contention of the Appellants can be sustained. I read at pages 10-13 the statement on oath of PW1 which he adopted as his evidence-in-chief together with answers provided by him to questions under cross-examination at pages 25-27 of the Additional Record. I also read the evidence of PW2 at pages 7-9 of the Main Record and 30-34 of the Additional Record. I did this with a view to finding the hearsay and speculative evidence talked about by the Appellants.
This is my findings: Every event testified to by PW1 from the point he was hired by the crew members to convey them and C-Way bottle water to the Waziri Jetty to the time the hose from the 1st Appellant burst and hit him thereby causing him severe injury is not hearsay but from his personal knowledge. Ditto for the evidence of PW2 who was at the Jetty and an eye witness to all the happenings at the time.
I fail to see anything hearsay or speculative in all the material evidence led by the Respondent concerning how he got the Jetty and the severe damage he suffered following the bursting of the hose from the 1st Appellant. What may appear speculative is the fact that the Respondent concluded that the 1st Appellant was under the ownership or control of the 2nd and 3rd Respondent because the crew members who hired him were wearing the ID card of the 2nd Respondent.
Another aspect of speculation may be the evidence of PW2 who said that he has been operating at the Jetty as a commercial driver for 15 years and that he used to see the 3rd Appellant coming to inspect the 1st Appellant whenever the latter berthed at the Waziri Jetty. The 2nd and 3rd Appellants who the Respondents alleged to be in control of the 1st Appellant at the material time of the incident, apart from entering conditional appearance did not contest the pleading of the Respondent by filing a Statement of Defence.
Therefore, the pleading and evidence of the Respondent concerning the ownership/control of the 1st Appellant by the 2nd and 3rd Appellants is, in law, deemed admitted by them, and facts admitted need no further proof as no issue is joined. See Egesimba vs. Onuzuruike (2002) LPELR-1043(SC), Akahall & S0ns Ltd vs. NDIC (2017) LPELR-41984 (SC), FUT Minna vs. Olutayo (2017) LPELR-43827 (SC).
This is based on the principle that, where a Defendant disputes the Plaintiff’s claim, he must file a Statement of Defence to contradict, controvert, challenge or deny the claim and lead evidence thereon at the trial. See Oyekan II & Ors vs. Rossek (2009) LPELR-11906 (CA); Emodi & Ors vs. Emodi & Ors (2013) LPELR-21221 (CA). The law is also settled that in a case where the Defendant files no defence, the standard of proof cast on the Plaintiff is a minimal one. See Chami vs. U.B.A. Plc (2010) SCNJ 23 AT 39-40.
Having not filed a defence, the 2nd and 3rd Appellants are estopped from leading evidence to show that they neither owned nor are they in control of the 1st Defendant at the time of the injury/damage to the Respondent. This is founded on the principle that evidence led on facts not pleaded goes to no issue and should be disregarded by the Court. See Okonkwo vs. CCB Nigeria Plc (2003) LPELR-2484 (SC); Okoko vs. Dakolo (2006) LPELR-2461 (SC).
In this regard, the evidence of DW1 that the 1st Appellant was not owned or controlled by the 2nd and 3rd Appellants cannot avail them as they failed to join issues with the Respondent on that fact.
Throughout his testimony, DW1, who claimed to be on board the 1st Appellant at the material time of the incident, did not dispute the fact that the Respondent was injured following the bursting of the hose used by the 1st Appellant to discharge kerosine at the Waziri Jetty. He only stated that the Respondent was not contracted by the 1st Appellant to supply any water and that he was on the Jetty uninvited.
To this, I say that the duty of care under the law of tort is based on foreseeability and proximity and not on any contractual relationship between the Plaintiff and the Defendant as discussed earlier in this Judgment. Appellants also attacked the judgment of the lower Court on the invocation of the maxim of res ipsa loquitur, which the Appellants contended is not applicable in this case, as the cause of the accident is known. Further that the Respondent did not plead the maxim in his Statement of Claim. The maxim res ipsa loquitur literally means “the thing speaks for itself”.
It is applicable to actions for injury where no proof of such negligence is required beyond the accident itself which is such as necessarily involves negligence. Res ipsa loquitur is a doctrine relied on by a Plaintiff to prove the negligence of a Defendant. It applies in a situation where the facts of a case are such that the negligence complained of would not have occurred if the Defendant had taken due care. The Court, in the circumstance, is entitled to draw inference from those facts unless the Defendant adduces evidence in rebuttal of such inference.
It operates to shift the burden on the Defendant to explain and show that the accident occurred without any fault on his part. Consequently, where the facts constituting negligence are known and specifically pleaded with particulars or where the Defendant offers a satisfactory explanation, the doctrine will no longer apply. See Ibekendu vs. Ike (1993) LPELR-1390 (SC); The Shell Petroleum Dev. Co. of Nig. Ltd vs. Anaro & Ors (2015) LPELR-24750 (SC); P. S. H. S. M. B. vs. Goshwe (2012) LPELR-9830 (SC); Chudi Verdical Co. Ltd vs. Ifesinachi Industries Nig. Ltd (2018) LPELR-44701 (SC).
There is a misconception in the submission of learned counsel for the Appellants with respect to causation of the accident in relation to the application of the doctrine of res ipsa loquitur. It is not the law that for the doctrine to apply, the cause of the injury or damage must not be known. Rather, the law is that the cause of the accident leading to the injury to the Plaintiff must not be known for proper application of the doctrine. The emphasis is on the cause of the accident not the resultant injury or damage. Where the cause of the accident is known, the maxim will not apply.
It should be made clear here that the cause of the injury to the Plaintiff and the cause of the accident are not the same. One leads to the other, that is to say, the accident leads to the injury. It is the cause of the accident that must not be known for the application of the doctrine, not the cause of the injury, because, invariably, it is the accident that causes the injury. In the case at hand, the cause of the injury to the Respondent is the hose that burst from the 1st Appellant and hit him.
What caused the hose to burst and hit him is not known to him and that is why he did not plead it, hence the application of the doctrine. It is the responsibility of the Appellants to explain what caused the accident which led to the injury to the Respondent, as the burden of proof has now shifted to them through the application of the doctrine of res ipsa loquitur. In the case of Air France vs. Akpan (2015) LPELR-24648 (CA), the Respondent was hit by an object while sleeping on her seat inside the Appellant’s aircraft and she fainted.
The cause of the injury to her is the object, but how and why the object hit her was not known to her. The Court held that res ipsa loquitur applies. In such a case, the burden will shift to the Defendant to explain what happened and show that there was no negligence on his part. Where it fails, the law presumes negligence and damages will follow. In the case of Ojo vs.
Gharoro & Ors (2006) LPELR-2383 (SC) AT 54-55, Oguntade JSC, captured the essence and application of the doctrine of res ipsa loquitur in a simple and lucid language as follows: “The essence of the maxim is that an event which in the ordinary course of things, was more likely than not to be caused by negligence was by itself evidence of negligence depending of course on the absence of explanation. The doctrine merely shifts the onus on the defendant. If the facts are sufficiently known or where the defendant gave an explanation, the doctrine will no longer apply. Barkway v.
South Wales Transport (1950) 1 All E.R. 392. Reliance on the doctrine of ‘res ipsa’ is thus a confession by the Plaintiff that he has no direct and affirmative evidence of the negligence complained of against the defendant but that the surrounding circumstances amply establish such negligence. In relying on res ipsa loquitur, a plaintiff merely proves the resultant accident and injury and then asks the Court to infer therefrom negligence on the part of the defendant.” (Underlining supplied for emphasis).
One last thing about the doctrine of res ipsa loquitur that is deserving of mention is that the doctrine doesn’t have to be specifically pleaded. It suffices if the facts pleaded allude to the reliance on the doctrine by the Plaintiff. In the instant case, the Respondent pleaded that as he was moving bottle water near the 1st Appellant on the request of the crew members, he had an explosion and was hit by a broken or bust hose from the 1st Appellant, causing him severe injury. He subsequently fainted.
In his claim before the lower Court, he imputed negligence on the part of the Appellants as he does not know what caused the explosion and the bursting of the hose. Res ipsa loquitur can be inferred from this set of facts as pleaded by the Respondent, and the lower Court, in my view, rightly did so. In the final analysis, I resolve issue 2 against the Appellant.
Resolution of Issue 3 Learned counsel for the Appellants submitted on this issue that even if the 1st Appellant is found to be liable in negligence to the Respondent, such liability would not extend to the 2nd and 3rd Appellants because the 2nd and 3rd Appellants do not have any connection with the 1st Appellant, referring to Exhibit D2, the Certificate of Registration of the 1st Appellant with NIMASA which shows that the 1st Appellant was owned by Sea Pioneer Limited, the employer of DW1.
In the course of resolving issue 1, I held at pages 27-28 of this judgment, thus: “…the 2nd and 3rd Appellants never filed a defence to the Respondent’s claim, even though the same counsel representing the 1st Appellant was the same counsel who filed a joint memorandum of conditional appearance for all the Appellants.
Interestingly, at the conclusion of trial, all the three Appellants filed an address titled: “DEFENDANTS’ FINAL ADDRESS” dated 10/03/2017, which occupies pages 216-232 of the Record, settled by Sylva Ogwemoh, SAN, FCIArb, (U.K.), Wahab Dako, Esq., and Chibueze Muobuikwu, Esq., as “Defendants’ Solicitors” but signed by Wahab Dako, Esq. Please note the position of the apostrophe on the word “Defendants”.
There is also a joint reply filed on behalf of all the Appellants at pages 263-268 of the Record titled: “DEFENDANTS’ REPLY ON POINTS OF LAW TO THE PLAINTIFF’S WRITTEN ADDRESS” signed by their lead counsel, Sylva Ogwemoh, SAN, FCIArb, (U.K.) as Solicitor for all the Defendants.
All these goes to show clearly that even though the 2nd and 3rd Appellants failed to file a defence to the suit, they still proceeded to file joint final address, signifying their participation in the proceedings from the beginning to the end, starting with the filing of memorandum of conditional appearance and ending with a final address. These set of Appellants are, by their action, also caught by the doctrine of waiver.
With their active participation in the proceedings leading to the judgment against them, the 2nd and 3rd Appellants cannot now complain of lack of service of originating process. Issue 1 therefore stands resolved against the Appellants and in favour of the Respondent.” (Underlining for emphasis).
Apart from resolving the issue of service of the originating process on the 2nd and 3rd Appellants and the consequence of their participation in the proceedings, including filing of final address, under issue 1, I also resolved the issue of the liability of the 2nd and 3rd Appellants in the course of resolving issue 2, at pages 33-34 supra, as follows: “The 2nd and 3rd Appellants who the Respondents alleged to be in control of the 1st Appellant at the material time of the incident, apart from entering conditional appearance did not contest the pleading of the Respondent by filing a Statement of Defence.
Therefore, the pleading and evidence of the Respondent concerning the ownership/control of the 1st Appellant by the 2nd and 3rd Appellants is, in law, deemed admitted by them, and facts admitted need no further proof as no issue is joined. See Egesimba vs. Onuzuruike (2002) LPELR-1043(SC); Akahall & Sons Ltd vs. NDIC (2017) LPELR-41984 (SC); FUT Minna vs. Olutayo (2017) LPELR-43827 (SC).
This is based on the principle that, where a Defendant disputes the Plaintiff’s claim, he must file a Statement of Defence to contradict, controvert, challenge or deny the claim and lead evidence thereon at the trial. See Oyekan II & Ors vs. Rossek (2009) LPELR-11906 (CA); Emodi & Ors vs. Emodi & Ors (2013) LPELR-21221 (CA). The law is also settled that in a case where the Defendant files no defence, the standard of proof cast on the Plaintiff is a minimal one. See Chami vs. U.B.A. Plc (2010) SCNJ 23 @ 39-40.
Having not filed a defence, the 2nd and 3rd Appellants are estopped from leading evidence to show that they neither owned nor are they in control of the 1st Defendant at the time of the injury/damage to the Respondent. This is founded on the principle that evidence led on facts not pleaded goes to no issue and should be disregarded by the Court. See Okonkwo vs. CCB Nigeria Plc (2003) LPELR-2484 (SC); Okoko vs. Dakolo (2006) LPELR-2461 (SC).
In this regard, the evidence of DW1 that the 1st Appellant was not owned or controlled by the 2nd and 3rd Appellants cannot avail them as they failed to join issues with the Respondent on that fact.” (Underlining, mine). The corollary of the two findings above is that the 2nd and 3rd Appellants, having not contested the case put forward by the Respondent, are jointly, with the 1st Appellant, liable to the Respondent in negligence. Accordingly, I resolve issue 3 against the Appellants and in favour of the Respondent.
Resolution of Issue 4 Under this issue, the Appellants questions the propriety of the award of One Hundred Million Naira (N100,000,000:00) as damages to the Respondent against the Appellant. The Appellants argued that the award is perverse, unwarranted, unjustified and ridiculous. Damages is a pecuniary compensation granted to a successful party in an action for a wrong which is either of tort or a breach of contract.
General damages is defined as the kind of damages which the law pe toresum flow from the wrong complained of by the victim. It covers all losses which are not capable of exact quantification, including non-financial losses.
The purpose of damages is to compensate the Claimant for damage, injury or loss suffered by him. The guiding principle is restitutio in intergrum – Anambra State Environmental Sanitation Authority & Anor vs. Ekwenem (2009) LPELR-482 (SC). The measure or quantum of general damages is a matter that is at the discretion of a Judge taking into account the type of wrong committed or injury suffered. In ELF Petroleum vs.
Umah & Ors (2018) LPELR-43000 (SC) Ogunbiyi JSC restated the law as follows: “It is pertinent to re-iterate herein that in the award of general damages a wide spread power is given to the Court comparable to the exercise of discretion of the Court. It is enormous and therefore far-reaching and contrary to the contention held by the Appellant herein. The measure of general damages is awarded to assuage such a loss, which flows naturally from the Defendant’s act. It needs not be specifically pleaded. It suffices if it is generally averred….
Unlike special damages, it is generally incapable of exact calculation.” Generally, in civil claims, general damages are awarded to assuage for the injury, loss or inconvenience or both, suffered by the victim against the person(s) found to be at fault. General damages need not be pleaded or proved and it is awarded in a deserving case as monetary compensation to a person who has suffered injury to his person or property as a result of the unlawful act or omission of another person.
The quantum need not be specified as the award is based on what a reasonable man will consider to be adequate in the circumstances. See Badmus & Anor vs. Abegunde (1999) LPELR-705 (SC), Eneh vs. Ozor (2016) 16 NWLR (part 1538) 219; Union Bank Plc vs. Chimaeze (2014) 9 NWLR (part 1411) 166. This is the guiding principle for the determination of quantum of general damages to be awarded in the event a civil claim succeeds.
In general term, the Appellate Court is reluctant to interfere with general damages awarded by a trial Judge in the exercise of his discretion, except where the award was made under a wrong legal principle or is too low or too high. See the case of Nigerian Bottling Company Plc vs.
Ubani (2013) LPELR-21902 (SC) at page 70, where Chukwuma-Eneh, JSC, held thus: “In stressing the point further, the law is also firmly positioned that, for an appellate Court to interfere with award of general damages, it must be satisfied that the trial Court in assessing the damages applied a wrong principle of law, or took into account some irrelevant factors or left out some relevant factors such that the amount awarded is ridiculously too low or too high to represent a fair estimate of the damage.” See also Anambra State Environmental Sanitation Authority & Anor vs.
Ekwenem (2009) LPELR-482 (SC), per Adekeye, JSC. In the earlier case of Union Bank of Nigeria vs.
Ajabule & Anor (2011) LPELR-8239 (SC), the Supreme Court restated the same legal principle in the following words: “The law is trite that where general damages are claimed, if the issue of liability is established as in the present case, the trial Judge is entitled to make his own assessment of the quantum of such general damages and, on appeal, such general damages will only be altered or varied if they were shown to be either so manifestly too high or so extremely too low or that they were awarded on an entirely wrong principle of law as to make it, in the Judgment of the appellate Court, an entirely erroneous estimate of the damage to which the Plaintiff is entitled.” See also Cameroun Airlines vs.
Otutuizu (2011) LPELR-877 (SC); UBN Ltd vs. Odusote Bookstores Ltd (1995) 9 NWLR (Pt.421) 558. In the instant case on appeal, the Respondent claimed before the lower Court, among other reliefs, the sum of One Hundred Million Naira (N100,000,000:00) against the Appellants as damages for negligence. The lower Court awarded the said amount to the Respondent as damages for negligence against the Appellants jointly and severally in addition to directing the Appellants to bear the cost of carrying out of adequate surgery on the Respondent.
Explanation on why the lower Court decided to award the entire sum claimed by the Respondent against the Appellants has not been offered in the Judgment.
If the purpose of damages is to serve as compensation for damage, injury or loss suffered by the Claimant, then, in view of the lower Court’s order on the Appellants to shoulder the cost of carrying out adequate surgery on the Respondent, the unexplained award of the sum of One Hundred Million Naira to the Respondent as damages against the Appellants is only ridiculously high and perverse because it did not take into account the legal principle for the award of damages as monetary compensation for injury suffered.
I am in agreement with the submission of the Appellants’ counsel that in awarding the sum of One Hundred Million Naira to the Respondent as damages, the learned trial Judge allowed emotion and sentiment to take the better part of him. I find this an appropriate case in which this Court will interfere with the wrong exercise of discretion by the lower Court in the award of damages.
Consequently, the award of One Hundred Million Naira (N100,000,000:00) damages to the Respondent is hereby set aside for being ridiculously too high and against the legal rules for the award of damages as monetary compensation for loss and injury suffered. In its place, I substitute and award the sum of Twenty Million Naira (N20,000,000:00) as damages to the Respondent jointly and severally against the Appellants.
In making this award, I take into consideration the fact that by the nature of the injury sustained by the Respondent, it is near impossible for him to continue to ply his trade as a commercial vehicle driver, which was his means of livelihood. Having resolved all the four issues in this appeal against the Appellants, save issue 4 which only succeeded in part, I hereby dismiss the appeal and affirm the judgment of the lower Court in Suit No.
FHC/L/CS/1612/2013 delivered on 07/07/2017, subject to the variation under issue 4 with respect to the quantum of damages, now reviewed downwards from One Hundred Million Naira to Twenty Million Naira.
ONYEKACHI AJA OTISI, J.C.A.: My learned brother, Muhammad Ibrahim Sirajo, JCA, made available to me in advance, a draft copy of this judgment in which this appeal was dismissed, except on the variation of damages from N100 million to N20 million. I am in agreement with the reasoning and conclusions therein, and adopt the same as mine. I will only make few comments in support. Service of a hearing notice on a party to notify him of the hearing date of a matter is fundamental to the competence of the Court to hear the matter. It is foundational to the administration of justice.
It ensures that the adverse party is given an opportunity to be heard in every aspect of the case before the Court issues any order that may unfavourably affect him under the principle of audi alterem partem, which is one of the legs of natural justice, Fair hearing demands that each party in a dispute is given opportunity to be heard. It is the service of hearing notice that confers on the Court the jurisdiction to entertain the matter before it.
Therefore, where a party is entitled to notice of a proceeding and there is failure to serve him, the failure is a fundamental defect which goes to the root of the competence or jurisdiction of the Court to entertain the matter. See Skenconsult (Nig.) Ltd. & Anor v. Ukey(1981) 1 SC.6, Leedo Presidential Motel Ltd v. Bank Of The North Ltd & Anor (1998) LPELR-1775(SC), Yusuf Dan Hausa & Co. Ltd v. Panatrade Ltd (1993) LPELR-420(SC), Onwubuya & Ors v. Ikegbunam (2019) LPELR-49373(SC).
If the Court proceeds to hear a matter without service of hearing notice on all the parties in the matter, the proceedings and orders made thereat amount to a nullity, no matter how well conducted the proceedings. A party who is affected by an order made by the Court in that circumstance is entitled, as a matter of right ex debito justitiae, to have the order, which amounts to a nullity, set aside; FBN Plc v TSA Industries Ltd (2010) LPELR-1283(SC), Adegbola v osiyi (2017) LPELR-42471(SC), Achuzia v Ogbomah (2016) LPELR-40050(SC).
This Court found that notwithstanding the irregular service of the originating processes on the Appellants, the Appellants participated in the hearing at the lower Court. The question now is whether they are deemed to have waived their rights to complain about any irregularity in service of the originating processes on them at this stage. A waiver can be defined as the abandonment of a right_ The Supreme Court, per Ogundare, JSC in Odu’a Investment Co. Ltd v. Talabi (1997) LPELR-2232(SC) at page 88, opined. “What is waiver? Defining the word “waiver”.
Idigbe J S.C. at page 22 Of the Ariori’s case said: “By way of a general definition, waiver is the intentional and voluntary surrender or relinquishment of a known privilege and or right: it therefore, implies a dispensation or abandonment by the party waiving of a right or privilege which, at his option. he could have insisted upon.” Obaseki. J.S.C. at page 25 added: “Waiver is according to Words and Phrases legally defined Volume 5 P.301 1969 edition reprinted 1974 defined as the abandonment of a fight.
A person Who is entitled to the benefit of a Statutory provision may waive it and allow the transaction to proceed as though the provision did not exist.” It follows, therefore, that where a defendant is served with a writ of summons in breach of Sections 97 and 99 of the Act, he has a choice either to Object to the service by applying to have it set aside and the Court ex debito justitiae will accede to the application or ignore the defect and proceed to take steps in the matter.
By entering unconditional appearance and filing pleadings, as in the case on hand, he is deemed to have waived his right to Object and cannot later in the proceedings seek to set same aside because of the original defect.” See also Ariori & Ors v. Elemo & Ors (1983) LPELR-552(SC); Auto Import-Export v. Adebayo & Ors (2005) LPELR-642(SC). The consequence of waiver is that it defeats non-compliance; NBC Plc v Ubani (2013) LPELR-21902(SC).
Having participated in the hearing of the matter before the trial Court by filing pleadings and other processes challenging the competence of the suit, on grounds other than the proper service of the originating processes, a complaint of any irregularity in service cannot be entertained at this stage. It is for the above reason, and for the fuller reasons given in resolution of the other issues addressed in the leading judgment that I also dismiss this appeal, save for the variation of damages from N100 million to N20 million. I abide by the orders made therein.
ADEBUKUNOLA ADEOTI IBIRONKE BANJOKO, J.C.A.: I have carefully perused the draft copy of the judgment delivered by my learned brother. MUHAMMAD IBRAHIM SIRAJO and found out that he rightly resolved all the issues in this judgment. In other to prove negligence, the Claimant has to show that the Defendant owes him a Duty of Care, the duty of care has been breached by the Defendant and that Breach of Duty caused the claimant damages.
See DONOGHUE VS STEVENSON (1932) AC 562, CAPARO VS DICKMAN (1990) 2 AC 565 IYERE VS BENDEL FEED AND FLOUR MILL LTD (2008) LPELR-1578(SC), KOYA VS UBA LTD (1997) LPELR – 1711 (SC). In this instant appeal, the Respondent has successfully proven the ingredients of negligence against the Appellants. The 1st Appellant owed a duty of care to ensure that in the course of discharging her cargo, to ensure that all users of the Waziri Jetty are not harmed by her operations.
The bursting or breaking of the hose used in the discharge of the cargo is a breach of duty and that breach of duty caused the Respondent to suffer serious bodily injuries. I also abide by the findings of my learned brother in the resolution of other issues. Therefore, I abide by the decision of my learned brother in dismissing the appeal and affirming the judgment of the lower Court in Suit No FHC/L/CS/1612/2013. I also abide by the decision as regards the quantum of damages awarded.
Appearances
ONWARD ENTREPRISES LTD v. M. V MATRIX & ORS
On Wednesday, April 13, 2022
SC.15/2010Before Their Lordships
Chima Centus Nweze Justice of the Supreme Court of Nigeria
Helen Moronkeji Ogunwumiju Justice of the Supreme Court of Nigeria
Tijjani Abubakar Justice of the Supreme Court of Nigeria
Emmanuel Akomaye Agim Justice of the Supreme Court of Nigeria
Between
Judgment
CHIMA CENTUS NWEZE, J.S.C. (Delivering the Leading Judgment): At the Federal High Court, holden at Lagos, the appellant, by way of Writ of Summons, sought to enforce a contract of affreightment dated March 25, 2002, against the respondents.
By its Amended Statement of Claim, the appellant claimed as follows: Whereupon the plaintiff claims as endorsees the sum of US$650,000 only or its equivalent in Naira with interest at 21% per annum until payment, being damages suffered by the plaintiff by reason of the defendant’s breach of contract of affreightment and/or bailment and by reason of the defendants’ negligence in their care of the plaintiff’s cargo of rice, as well as Admiralty costs and legal expenses.
The matter proceeded to the trial stage. At the trial, the appellant also filed a motion-exparte, for the arrest and detention of the first respondent and same was granted. The respondents, in turn, filed two (2) applications: one for the release of the respondents’ vessel, and the other sought to shift the vessel to anchorage, pending the hearing of the former for release. Both processes were filed on June 15, 2002. The appellant consented to the release of the respondents’ vessel and filed a consent to release on July 26, 2002.
During the course of the proceedings, the respondents filed a motion for stay of proceedings on July 11, 2003, pending reference to arbitration in London. The motion was supported by affidavits. In response, a Counter-affidavit, in opposition to the application, was filed by the appellant.
The trial Court, in its ruling, delivered on August 11, 2004, found in favour of the respondents, granting their application for stay of proceedings and referred the parties to arbitration in London.
Dissatisfied with the trial Court’s ruling, the appellant appealed to the Court below via a Notice of Appeal containing two (2) grounds of appeal.
The lower Court, by its judgment delivered on June 27, 2008, upheld the ruling of the trial Court, and consequently dismissed the appeal.
The appellant being dissatisfied with the judgment of the lower Court, appealed to this Court via a Notice of Appeal. The said Notice of Appeal, at pages 310- 312 of the record of appeal, contains the following three grounds of appeal: GROUND 1 The learned Justices of the Court of Appeal mis-directed themselves when they applied the case of Sonnar (Nig) Ltd v Partenreederi M.S. Norwind Vol. 3 NSC 175 at 192, without correctly testing the facts of this case against the ratio.
GROUND 2 The learned Justices of the Court of Appeal erred in law when they held at page 15 of their judgment that as rightly submitted by respondents’ counsel even if the claim to be submitted before the arbitrator is time barred the same provision i.e. Article 3 Rule 6 of The Hague/Visby Rules reproduced supra relied upon by the appellant allows for extension of time. Appellant is entitled to explore that opportunity. PARTICULARS 1.
In the absence of evidence that time extension pursuant to Article 3 Rule 6 of The Hague/Visby Rules had been granted a claim cannot be validly submitted before the Arbitrator in London. 2. There was no evidence before the Court that an extension of time had been granted. 3. Under Clause 40 of the Charter party dated 7th March, 2002, the claim must have been made in writing and the Claimant’s application for arbitration made within 6 months of redelivery of the vessel. 4. There is a distinction between the submission of the claim and the appointment of the Arbitrator. 5.
The appellant has by this decision been permanently deprived of a remedy in the London Arbitration proceedings because there was no evidence before the Court that Article 3 Rule 6 of The Hague/Visby Rules has been activated by the Respondents to grant time extension to the Appellant. GROUND 3 The learned Justices of the Court of Appeal erred in law when they held at page 19 of their judgment that in the instant case appellant who had the onus to advance compelling reason as to why this Court should interfere with the discretionary power of the trial judge had failed to do so.
PARTICULARS There was un-controverted evidence before the Court that the claim was time barred in London.
RESOLUTION OF THE ISSUE The Supreme Court, like other Courts of the land, is a creation of statute. A Court cannot assume jurisdiction to adjudicate in a cause or matter unless its jurisdiction has been properly invoked. Any proceedings conducted without jurisdiction is a nullity, no matter how well- conducted or how sound the decision or orders made therein are, Madukolu v Nkemdilim [1962] 2 SCNLR 341, Bronik Motors Ltd and Anor v Wema Bank Ltd [1983] 1 SCNLR 296, Petrojessica Ent. Ltd v Leventis Tech Co. Ltd [1992] 5 NWLR (pt. 244) 675, Dapianlong v Dariye[2007] 4 SC (pt.
III) 118, Attorney-General, Lagos State v Dosunmu [1989] 3 NWLR (pt. 111) 552, 567, N.C.C v Motophone Ltd [2019] 14 NWLR (pt. 1691) 1, Nzei v University of Nigeria, Nsukka [2017] 6 NWLR (pt. 1561) 300.
By virtue of Section 233 (2) (a) of the Constitution of the Federal Republic of Nigeria, 1999, (as amended), an appeal shall lie from the decisions of the Court of Appeal to the Supreme Court; where the Grounds of Appeal involve questions of law alone. Where the questions involve facts or mixed law and facts, the leave of this Court or the Court of Appeal must first be sought and obtained.
Where leave is required and not obtained, the affected Grounds of Appeal would be incompetent and liable to be struck out, Utoo v A.P.C [2018] 12 NWLR (pt. 1634) 507; Allanah and Ors v Kpolokwu and Ors [2016] LPELR- 40724 (SC); BASF (Nig.) Ltd v Faith Entreprises Ltd. [2010] 1 SC (pt. II) 186, 202 – 203; Nigeria National Supply Co. Ltd v Establishment of Sima of Vaduz [1990] LPELR – 2004 (SC). It follows then that it is only through a competent appeal can the Court’s jurisdiction be invoked.
Admittedly, this Court has held in a plethora of cases that there is difficulty in distinguishing between a ground of law simpliciter and a ground of mixed law and fact, as there is a very thin line of disparity between both, Ogbechie v Onochie (No.1) [1986] 2 NWLR (pt. 23) 484, Nwadike and Ors v Ibekwe and Ors [1987] LPELR-2087 (SC) 42-42 U.B.A Ltd v Stahibau GMBH and Co. [1989] 3 NWLR (pt. 110) 374, 391-392, Ajibade v Pedro [1992] 5 NWLR (pt. 241) 257, Obatoyinbo and Anor v Emmanuel Oshatoba and Anor [1996] LPELR-2156 (SC).
In England, this difficulty was acknowledged as early as 1919, if not earlier, Clarke v Edingburgh, etc Tramways (1919) SC (H.L) 35, Currie v Inland Revenue Commissioners (1921) 2 KB 332, Cooper v Stubbs (1925) 2 KB 753, Benmax v Austin Motors Co., Ltd (1955) 1 All ER 326; Edwards (Inspector of Taxes) v Bairstows and Anor (1955) 3 All ER 48. This state of affairs prompted the very scintillating expose on the subject by C. T. Emery and Professor B. Smythe in their article titled, “Error of Law in Administrative Law,” in Law Quarterly Review, Vol. 100 (October, 1984).
Happily, however, this Court has ingeniously fashioned out guiding principles for navigating through the nuances of characterization of grounds of appeal. They include the following: a. Where the ground of appeal complains of an error involving a misunderstanding or misapplication of the law to prove admitted facts, it is a ground of law; b. A ground of appeal which complains of the lower Court’s exercise of its discretion necessarily involves the appellate Court’s consideration of the peculiar facts and circumstances upon which the discretion was exercised and so is one of facts.
But where the ground complains of the lower Court’s use of wrong principles in the exercise of its discretion, the facts and circumstances in which the discretion was exercised are no longer in issue. The only issue in such a case is that of the wrong principle and therefore one of law alone; c.
A ground of appeal which complains of the lower Court’s evaluation of evidence and alleged insufficiency of the evidence, is one of facts or at best mixed law and facts.Where however, the ground of appeal does not complain about the evaluation but only about the inference to be drawn from the established or admitted facts, it is one of law. Similarly, where the ground of appeal alleged that there is no evidence upon which the lower Court could reach its decision, it is a ground of law. d.
Where the Court is being invited to investigate the existence or otherwise of certain facts upon which judgment was based, such a ground of appeal is a ground of mixed law and fact. e. A ground of appeal which challenges the finding of fact made by the trial or lower Court or involves issues of law and fact can only be argued with the leave of the appellate Court. f. Where the evaluation of facts established by the trial Court or lower Court before the law in respect thereof is applied is under attack or question, the ground of appeal is one of mixed law and facts. g.
Where evaluation of evidence tendered at the trial is exclusively questioned, it is a ground of fact. Enyibros Food Processing Company (Nig) Ltd and Anor v N.D.I.C and Anor [2021] LPELR – 55330 (SC); Standard IBTC Bank v Longterm Global Capital Ltd and Anor [2017] 18 NWLR (pt. 1598) 431; F.B.N Plc v T.S. A Industries Ltd [2010] 15 NWLR (pt. 1216) 247; Maigoro v Garba [1999] 10 NWLR (pt. 624) 555; Motunwase v Sorungbe [1988] 5 NWLR (pt. 92) 90; Obatoyinbo v Oshatoba [1996] 5 NWLR (pt. 450) 531.
I earlier reproduced the three original grounds of appeal. On the face of the grounds in the notice of appeal before this Court, it is apparent that they are mainly based on fact or mixed law and facts, and not of law simpliciter.
A careful examination of ground 1 of the appellant’s grounds of appeal, in the absence of any particulars thereto accompanying it, reveals that the appellant herein is complaining about a misdirection.
Generally, a ground of appeal may be couched in such a way as to incorporate or contain particulars of error, without necessarily setting them out as usual under a separate heading of particulars, Nsirim v Nsirim [1990] 3 NWLR (pt. 138) 285; Global Trans. Oceanico SA v Free Ent (Nig,) Ltd [2001] 5 NWLR (pt. 706) 426. However, Order 8 Rule 2 (2) of the Supreme Court Rules mandates that if the grounds of appeal allege misdirection or error in law, the particulars and nature of the misdirection or error shall be clearly stated.
Failure to do comply renders such ground incompetent and liable to be struck out, National Investment Properties Co. Ltd v The Thompson Organisation Ltd and Ors [1969] LPELR – 25547 (SC); MbaNta v Anigbo [1972] 7 SC 57, 63; Nsirim v Nsirim [1990] 21 NSCC (pt. 11) 302; Anadi v Okeli [1977] All NLR 23; Military Administrator, Benue State v Ulegede [2001] 9 -10 SC 180; Adeleke v Asani and Anor [2002] LPELR-115 (SC). Ground 1 constitutes an exception to that general rule. Ground 1 is a novel way of couching grounds of appeal of this nature and it should not be encouraged.
It seems clear from the other grounds of appeal filed that learned counsel for the appellant properly filed other grounds of appeal with their particulars of error properly put in place. Ground 1 is accordingly struck out for non-compliance with the rules.
It is also manifest that ground 2 is too blatantly focused on finding of fact. In effect, ground 2 invites this Court to investigate the existence or otherwise of certain facts upon which the judgment of the Court below was based. Such a ground of appeal is a ground of mixed law and fact.<br< p=”” style=”box-sizing: inherit; margin: 0px; padding: 0px;”></br<>
I have read and re-read ground 3 of the appellant’s grounds of appeal. I must confess that its true purport eludes me. It is, however, my respectful view that, at best, this ground may be classified as one of mixed law and fact. Having now characterized the remaining two grounds of appeal, I am satisfied that, having not being grounds of law alone, they were filed in violation of Section 233 (2) (a) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended).
In the result, I hold that the remaining two grounds of appeal are incompetent, as the appropriate leave of Court required for their validity, was not obtained. The fatality of the instant appeal is more glaring consequent upon the fact that only one issue for determination was formulated from the three grounds of appeal in the appellant’s brief of argument. It follows then that the Notice of Appeal is incompetent for non-compliance with the rules, Irhabor v Ogaiamien [1999] 8 NWLR (pt. 616) 517, Asogwa v P.D.P [2013] 7 NWLR (pt. 1353) 207, Igwe v Kalu [2002] 5 NWLR (pt. 761) 678.
Courts do not condone illegality no matter who is involved by. This appeal was heard on January 25, 2022. The appellant adopted the Amended Brief of Argument filed on December 7, 2020. The appellant alleged that leave was sought to file a purported Amended Notice of Appeal from which the issue for determination was distilled. There is no evidence before this Court that leave was granted to amend this purported Amended Notice of Appeal.
The said amended Notice of Appeal contains the three grounds of appeal ipssissimaverba with the offensive three grounds of appeal in the original Notice of Appeal. The purported amendment was procured by a fraudulent hoax played on this Court. The law is settled that an appeal is incompetent by reason of its being invalid. An appeal that is void ab initio cannot be regularized. It cannot be saved by a purported amendment that is a sham as the instant appeal is, Aderibigbe v Abidoye [2009] LPELR-140 (SC); Atuyeye v Ashamu [1987] 1 NWLR (pt. 49) 267; Nsirim v Nsirim (supra).
Both the original and purported amended notice of appeal have, each, a common fundamental feature of deficiency. The lesson should be that, in conceiving a suit or an appeal, adequate care should be taken by counsel to ensure that the suit or appeal does not raise any issue of incompetency of the Court. Where counsel is un- surefooted, he or she could apply for leave to do so for abundans cautela non nocet – abundant or sufficient caution does no harm, F.B.N Plc v T.S.A Industries Ltd [2010] 15 NWLR (pt. 126) 247, 292.
In the final analysis, all I have laboured to say above is that this appeal is incompetent and is hereby struck out.
MUSA DATTIJO MUHAMMAD, J.S.C.: I read in advance the lead judgment of my learned brother, CHIMA CENTUS NWEZE JSC just delivered. I agree with and adopt the reasoning and conclusion in the said judgment to strike out the incompetent appeal.
HELEN MORONKEJI OGUNWUMIJU, J.S.C.: I have read the judgment just delivered by my learned brother, CHIMA CENTUS NWEZE JSC. I completely agree with the reasoning and conclusion that this appeal is incompetent and liable to be struck out.
This is an appeal against the decision of the Court of Appeal, Lagos Division, delivered on the 27th June, 2008 in which the Court below upheld the ruling of the trial Federal High Court and consequently dismissed the appeal. Dissatisfied with the decision of the Court below, the Appellant filed a notice of appeal dated 13th day of August, 2008 containing 3 grounds of appeal urging this Court to set aside the judgment of the Court below.
The facts as found and upheld by both lower Courts are as follows: The Appellant by contract of Affreightment contained in and/or evidenced by Bills of Lading numbered Wos. 148/028, Wos. 148/02, Wos. 348/02, Wos. 448/02, Wos. 448/02C, Wos. 448/02B and Wos. 248/02B dated at Bangkok, Thailand on 25/3/2002, contracted with the Respondents to carry about 280,000 bags of rice from Bangkok, Thailand, to Lagos and Port Harcourt in Nigeria for valuable consideration.
In breach of the contract of Affreightment aforesaid, and/or their duty of care and/or breach of their duty as bailee for reward, the Respondents damaged and lost some of the Appellant’s cargo. The Appellant who was the Plaintiff at the trial Court took out a writ against the Respondents and by his amended statement of claim dated 15/07/2002 claimed the sum of US$500,000 only or its equivalent in Naira with interest at 21% per annum until payment. The Appellant simultaneously, with the issue of the writ of summons, alsofiled a motion ex-parte for the arrest and detention of ‘M.V.
Matrix’, the 1st Respondent herein which was granted on 02/07/02 and the Respondents’ vessel was then arrested by the Court. The Respondents on the other hand filed two (2) applications simultaneously both dated 12/7/02 and filed on 15/07/02. The first application was for the release of the Respondents’ vessel while the second application sought to shift the vessel to anchorage pending the hearing of the application to release her from arrest. The Appellant consented to the release of the vessel and filed a consent to release on 26/07/2002.
By the order of Court granted on 10/06/2002, the Appellant amended its statement of claim. On 11/07/2003, the Respondents filed a motion on notice for stay of proceedings pending reference to arbitration in London. The motion was supported by a main affidavit containing 10 paragraphs and a further and better affidavit also containing 10 paragraphs. The Appellant filed a 16 paragraphs counter-affidavit.
The learned trial Court after considering the submission of counsel in its ruling delivered on 11/08/2004, granted the stay of proceedings pending reference of dispute between the parties to arbitration in London.
Dissatisfied with the ruling of the Court below, the Appellant filed its notice of appeal dated 13/08/2004 containing 2 grounds of appeal urging the Court below to set aside the ruling of the trial Court. The Court below having heard both counsel argue their case and considered all the evidence before them, held that the appeal lacked merit and consequently dismissed the appeal.
Aggrieved by the decision of the Court below, the Appellant appealed to this Court via a Notice of Appeal dated 13th August, 2008 containing 3 grounds of appeal.
In the Appellant’s Brief of Argument, the Appellant formulated a sole issue for determination which was distilled from the three (3) grounds of appeal.
The Respondents also adopted the sole issue formulated by the Appellant, thus: “Whether the Court of Appeal was right in dismissing the appeal of the Appellant and upholding the decision of the Federal High Court staying proceedings in the Appellant’s suit pending reference to Arbitration?”
My Lords, all the grounds of appeal here are grounds of mixed law and facts.
By virtue of theprovisions Section 233 (2) (a) & (3) of the Constitution of the Federal Republic of Nigeria, 1999 (as altered); “233. (2) An appeal shall lie from decisions of the Court of Appeal to the Supreme Court as of right in the following cases – (a) where the ground of appeal involves questions of law alone, decisions in any civil or criminal proceedings before the Court of Appeal (3) Subject to the provisions of Subsection (2) of this Section, an appeal shall lie from the decisions of the Court of Appeal to the Supreme Court with the leave of the Court of Appeal or the Supreme Court.” Where the questions are of mixed law and facts, the leave of this Court or the Court of Appeal must first be sought and obtained.
Where leave is required and not obtained, the affected Grounds of Appeal would be incompetent and liable to be struck out. See SPDC (NIG.) LTD. &Ors v. AGBARA &Ors (2019) 6 NWLR Pt. 1668 Pg. 310; Nwaigwe v. Okere (2008) 13 NWLR Pt. 1105 Pg. 445 at 474. In other words, a party desiring to appeal the decision of the Court of Appeal to the Supreme Court on mixed law and facts or facts is required to obtain the leave of the Courtof Appeal or the Supreme Court to file the notice and grounds of appeal. The filing of a notice of appeal is a necessary prerequisite to the hearing of an appeal.
Where leave is required a notice of appeal filed without leave is incurably defective and such notice cannot be amended as it is liable to be struck out. See A.S. B. Co. (Nig.) Ltd v. F.C.M.B. Ltd (2013) 10 NWLR Pt. 1363 Pg. 501; Popoola v. Adeyemo (1992) 8 NWLR Pt. 257, 1 SC; Abidoye v. Alawode (2001) 13 WRN 71 SC. It is a settled law that the notice of appeal filed without the leave of the Court below or this Court first sought and obtained is so incurably bad that in the eyes of the law, it does not exist. See JEV & Anor v. Iyortyom & Ors (2014) 14 NWLR Pt. 1428 Pg. 575; Anachebe v.
Ijeoma &Ors. (2014) 14 NWLR Pt. 1426 Pg. 168. One cannot amend what in law does not exist. The Appellant without the leave of the Court below or this Court filed its notice of appeal, which invariably does not exist in the eyes of the law. Even though the learned Counsel for the Appellant tried to remedy the situation by purportedly amending the earlier filed notice of appeal, a notice of appeal that is inherently incompetent cannot in any way be amended as rightly put by Denning (MR) in Macfoy v. UAC (1962) 153, “you cannot put something on nothing and expect same to stay there.
It will collapse.” See Co-operative & Commerce Bank Plc & Anor v. Ekperi (2007) 3 NWLR Pt. 1022 Pg. 493 Onwuzulike v. State (2020) 10 NWLR Pt. 1731 Pg. 91. That being the case, I hold that the purported amended notice of appeal was an exercise in futility, and could not have “breathed life” into the fundamentally defective original notice of appeal.
This appeal is incompetent and it is also struck out by me.
TIJJANI ABUBAKAR, J.S.C.: My Lord and learned brother, NWEZE, JSC granted me the privilege of reading in draft the elaborate leading judgment prepared and rendered in this appeal. I endorse the reasoning and conclusion and adopt the judgment as mine, I have nothing extra to add. I also endorse all consequential orders.
EMMANUEL AKOMAYE AGIM, J.S.C.: I had a preview of the judgment of my learned brother, Lord Justice, CHIMA CENTUS NWEZE, JSC. I completely agree with the reasoning, conclusions, decisions therein.
Appearances
OSTANKINO SHIPPING CO. LTD v. THE OWNERS OF THE MT BATA 1 & ORS
On Friday, April 16, 2021
SC.307/2011Before Their Lordships
Chima CentusNweze Justice of the Supreme Court of Nigeria
Helen Moronkeji Ogunwumiju Justice of the Supreme Court of Nigeria
Abdu Aboki Justice of the Supreme Court of Nigeria
Tijjani Abubakar Justice of the Supreme Court of Nigeria
Between
Judgment
MUSA DATTIJO MUHAMMAD, J.S.C. (Delivering the Leading Judgment): At the trial Federal High Court the appellant, as plaintiff in suit number FHC/L/CS/922/2002, by its amended statement of claim filed on the 8th of October 2003, claimed against the defendants, the respondents herein, jointly and severally for the damage to its vessel “M.P. OSTANKINO” and the attendant loss and expenses by reason of the collIsion with the respondents’ ship M.T, “BATA I” which occurred off-shore Lagos on the 3rd and 4th of August 2002 as a result of the negligence of the defendants, their servants or agents.
In paragraph 1 of its amended statement of claim, the appellant avers the status that entitles it to the grant of the claim by the trial Court thus:- “1. The plaintiffs at all times material to this action are the owners of the M.T. “OSTANKINO” and are a LIMITED LIABILITY company registered in Cyprus”. (Underlining mine for emphasis).
In responding to the foregoing paragraph of the appellant’s amended statement of claim the respondents, in paragraphs 1 and 2 of their amended-statement of defence/counter-claim filed on the 17 th December 2003, aver thus:- “1. SAVE AND EXCEPT as hereinafter specifically admitted the Defendants deny each and every allegation of fact contained in the plaintiffs statement of claim as if each were herein set out and traversed seriatim. 2.
The Defendants are not in a position to either accept or deny paragraph 1 of the statement of claim, the Plaintiff is therefore under a duty to the proof of same strictly.” (Underlining mine for emphasis).
Appellant’s amended reply to respondents’ amended statement of defence/counter-claim dated and filed on 7th October 2007 is silent on the challenge contained specifically in paragraph 2 of the respondents’ amended statement of defence/counter-claim on its legal personality. ]The appellant called a single witness to prove its case through whom eleven Exhibits, DI - DII, none of which is its certificate of incorporation, were tendered.
At the end of trial, Omolojobi J upheld respondents contention, proffered in final addresses of counsel, challenging the juristic personality of the appellant and struck out the suit. Following the dismissal of his appeal at the Court of Appeal, the appellant has appealed to this Court against the concurrent findings of the two lower Courts vide his notice filed on the 17th day of January 2011 containing three grounds.
Parties have filed and exchanged briefs which at the hearing of the appeal, were adopted and relied upon as their respective arguments.
The two issues distilled at paragraph 5.01 of the appellant’s brief of argument as arising for and which will inform the determination of the appeal read:- (1) Whether the Court of Appeal was right in holding that without the production of the certificate of incorporation of the Appellant that the appellant had no legal capacity or locus standi to institute the action against the respondents, when the legal capacity or locus standi of the Appellant to institute the action was not a fact in issue between the parties. (2) Whether the Court of Appeal was right in law in refusing and/or failing to consider the other two issues (1 & 3) submitted for determination by the Appellant which arose from the grounds raised in the Appellant’s Notice dated the 9th day of March 2007 and which said issues were argued in the Appellant’s Brief of Argument dated the 6th day of March 2009.
On the 1st issue, learned appellants counsel submits that the lower Court is wrong in its finding that appellant’s failure to produce its certificate of incorporation at the trial Court has robbed it the legal capacity to institute the action ab initio. At no time, it is argued, did parties join issue in their pleadings on the legal capacity of the appellant to institute the action. The lower Court, submits learned appellant’s counsel, wrongly applied the principle enunciated in NDUKA V. EZENWAKU (2001) 6 NWLR (PT 709) 517 and HOUSE OF REPRESENTATIVES V.
SPDC (2010) 11 NWLR (PT 1205) 213 at 251 since the legal capacity of the appellant had not been put in issue by the parties. Were it otherwise, the respondents, it is further submitted; would not have counter-claimed against the very appellant they contend lacks the legal capacity to defend the counter-claim. Relying on CALABAR CENTRAL COOPERATIVE THRIFT & CREDIT SOCIETY LTD & 2 ORS V. EKPO (2008) 6 NWLR (PT 1083) 362 at 392, HOUSE OF REPRESENTATIVES V. SPDC (supra) and G & T INVESTMENT LTD V.
WITT & BUSH LTD (2011) 8 NWLR (PT 1250) 500 at 540,learned appellant’s counsel contends that in the absence of a proper traverse by the respondents to paragraph I of appellant’s amended statement of claim, the issue of appellant’s juristic personality cannot be said to have been put in issue purely on the basis of respondents counsel’s belated submission in their final address at the trial Court. Further relying on ASAFA FOODS FACTORY V.
ALRAINE (NIG) LTD (2002) 12 NWLR (PT 781) 353, learned counsel concludes that respondents general traverse being the only basis of their challenge to the competence of appellant’s suit is unavailing. He urges that it be so-held and the issue resolved against the respondents. On their first issue, which is similar to appellant’s first, learned respondents’ counsel submits that appellant’s silence in its amended reply, given paragraphs 1 and 2 of the respondents response to paragraph 1 of the appellant’s amended statement of claim, is fatal.
The respondents in the two paragraphs of their amended statement of defence and counter-claim, it is asserted, unequivocally put the legal personality of the appellant in issue.
While by the first paragraph in their amended statementof defence/counter-claim the respondents may be said to have made a general traverse to the averment in paragraph 1 of the appellant’s statement of claim, by the further averment in paragraph 2 of their amended statement of defence/counter-claim, it is contended, the traverse ceases to be a general one the latter paragraph having made it very specific whether or not a traverse is general or specific, it is argued, depends on the totality of a party’s pleadings.
It is never the practice to isolate a particular paragraph in a party’s pleading and adjudge, by its token alone, that, the party’s pleading has been generally rather than specifically traversed.
Paragraph 1 in the respondents’ amended statement of defence/counter-claim must be viewed in the light of the other paragraphs in their pleading in correctly deciphering to be made as the issue/issues the parties had gone to trial upon. In any event, it is further contended, the appellant who claims to be an unnatural legal person is required by law to establish that fact and having failed to, both Courts are right to have struck out the claim. The two Courts, learned respondents’ counsel submits, rightly relied inter-alia on NDUKA V. EZENWAKU (supra), HOUSE OF REPRESENTATIVES V.
SPDC (supra) and MAGBAGBEOLA V. SANNI (supra) in affirming the trial Court’s finding that the appellant having failed to establish its legal personality by proffering the certificate of its incorporation, lacks the locus standi to sustain its claim against the respondents. Further referring to ASAFA FOODS FACTORY V. ALRAINE (supra), OSOLU V. OSOLU (2003) 11 NWLR (PT.832) 609 and REGISTERED TRUSTEES OF THE APOSTOLIC CHURCH ILESHA AREA V.
ATTORNEY GENERAL OF MID-WESTERN NIGERIA (1972) 4 SC 150 at 158 at 159, learned respondents’ counsel urges that the issue be resolved against the appellant. Now, in striking out appellant’s suit, the trial Court at page 204 of the record held as follow:- “To my mind, the aforestated averment contained in paragraph 2 of the statement of defence is enough to put the plaintiff’s counsel on notice that the Corporate existence of the Plaintiff which he described as a limited liability company registered in Cyprus has been called to question by the defendant’s counsel.
He could not have averred more than he did because, the fact that thePlaintiff is a limited liability company is solely within the knowledge of the Plaintiff and probably, its counsel as far as this action is concerned. Therefore, the burden of proving same rests on them.”
The trial judge concluded at page 206 of the record of appeal thus:- “In the instant case, when the Plaintiff is described as a limited liability company and there is nothing before this Court to support that averment in the Plaintiff’s Statement of Claim, the Plaintiff cannot be regarded as a juristic person with legal personality who can sue or be sued in a Court of competent jurisdiction. And such, the Plaintiff is not competent to institute this action. I so hold.”
In dismissing appellant’s appeal and affirming the trial Court’s foregoing findings, the lower Court held firstly as follows:- “The above pleading showed that Respondents joined issue with the Appellant on its legal capacity to maintain an action. The respondents denied the fact that the appellant is a limited liability company. The burden therefore shifts on the appellant to prove it is a limited liability so as to show its legal capacity to sue………” The Court further surmised as follows:- “In the instant case appellant is a foreign company.
Despite adding the word limited to Ostankino Shipping Co. it would not satisfy the requirement of evidence of incorporation. In absence of evidence of incorporation l hold that appellant is incompetent to institute any action at the lower Court. It is only proper juristic person who can sue or be sued. Defect in competence is very fatal to a suit.” (Underlining mine for emphasis).
The Court concluded at page 308 of the record as follows: “In view of the fact that the Court was not properly clothed with jurisdiction to entertain the action abinitio on ground of lack of locus standi, I will invoke S. 15 of the Court of Appeal, Act and order that the suit No. FAC/CS/922/2002 filed by the appellant before the lower Court be and is hereby struck out.” (Underlining mine for emphasis).
This appeal questions the correctness of the foregoing concurrent findings of the two Courts below striking out the suit following the appellant/plaintiff’s failure to prove its right to sue in the first place. It has not been the practice of this Court to interfere with such findings except where the appellant succeeds in establishing that they neither evolved from the evidence on record nor consequent upon correct application of principles. See SERBER V. KARIKARI (1939) 5 WACA 34 and OKAFOR V. ABUMOFUANI (20160 LPELR – 40299 (SC).
It is not being contested by the appellant that for an action to be properly constituted so as to vest jurisdiction in the Court to adjudicate on it there must be a competent plaintiff and a competent defendant. As a general rule only a natural person, a human being, or an artificial person, a body corporate, which the appellant avers to be in paragraph one of its amended statement of claim, are competent to sue or be sued. The law further confers on some non-legal entities the personality to sue or defend an action.
Thus, where either the plaintiff or the defendant is not a legal person, the action is liable to be struck out. See ATAGUBA & CO. V. GURA NIGERIA LIMITED (2005) LPELR-584 (SC), MAERSK LUNE & ANOR V. ADDIDE INVESTMENTS LTD & ANOR (2002) LPELR – 1811 (SC). In THE ADMIN & EXEC OF ESTATE OF ABACHA V. EKE-SPIFF & ORS (2009) LPELR – 3152(SC) this Court restated the principle thus:- “The law is also trite that a non-existing person, natural or legal personality, cannot institute an action. Nor will an action be allowed to be maintained against a Defendant who as sued, is not a legal person.”
It is also trite that the juristic personality of a body corporate is evidenced only by tendering the certificate of incorporation of the company. See BANK OF BARODA V. IYALABANI COMPANY LTD (2002) LPELR – 743 (SC), AFOLABI & ORS V. WESTERN STEEL WORKS LTD & ORS (2012) LPELR-9340 (SC), REPTICO S. A. GENEVA V. AFRIBANK NIG PLC. In J.K. RANDLE V. KWARA BREWERIES LTD (1986) 456 SC 1. Uwais JSC (as he then was later CJN) in his concurring contribution appositely stated thus:- “The appellant sued the respondent as a company incorporated under the Company Act 1968.
He failed to prove the incorporation by the production of the certificate of incorporation. As the averment in the statement of claim that the defendant was so incorporated was categorically denied by the respondent in its statement of defence, the failure to prove the incorporation was fatal to the appellant’s case.” (Underlining mine for emphasis).
In the case at hand the appellant in paragraph one of its amended statement of claim avers being a “LIMITED LIABILITY Company in Cyprus”. The respondents denied the averment and further assert in their amended statement of defence/counter-claim that being “not in position to either accept or deny paragraph 1 of the statement of claim, the plaintiff is therefore under duty to be proof of same strictly”.
It is strenuously argued by learned appellant’s counsel that appellant’s incorporation not having been categorically denied by the respondents its juristic personality has not been put in issue by parties to warrant its proof. Learned respondents’ counsel contends to the contrary.
I entirely agree with learned counsel to the respondents that learned appellant counsel’s insistence that the averment in paragraph two of the respondents amended statement of a defence/counter-claim is a general denial stems from his reading of the paragraph in isolation rather than by reference to the other averments in the party’s pleading. It is an age old rule of practice that to determine a party’s case resort must be made tothe entire averments in-the party’s pleadings. Considering a few paragraphs of the pleading in isolation militates against a complete flow of the party’s story.
See AGI V. P.D.P. & ORS (2016) LPELR 42578 (SC) and ATTORNEY GENERAL OF ANAMBRA STATE V. C. N. ONUSELOGU ENTERPRISES (1987) LPELR – 614 (SC).
A comprehensive examination of the respondents’ amended statement of defence/counter-claim reveals very clearly that parties herein have joined issue on the juristic personality of the appellant thereby making proof of same by the appellant necessary.
It is reasonably settled that a defendants resort to a general traverse in the statement of defence in a manner that casts the burden of proving a denied averment on the plaintiff is a convenient and permissible procedure in defining the case on the defendants which parties are to proceed to trial. Doing so constitute specific traverse of the facts averred to by the plaintiff.
By asking the appellant to prove the fact of its incorporation, the respondents who are in no position of knowing the fact of appellants incorporation have effectively traversed appellants assertion of being a corporate body. See UMESIE V. ONUAGULUCHI (1995)LPELR – 3368 (SC), MANDILAS & KARABERIS LTD V. LAMIDI APENA (1969) LPELR 25559 (SC), AKINTOLA & ANOR V. SOLANO (1986) LPELR – 360 (SC) and DAIRO & ORS V. REGISTERED TRUSTEES OF THE ANGLICAN DIOCESE (2017) LPELR -42573 (SC)
Learned appellant’s counsel seems to suggest that having failed to join issue in their amended statement defence/counter-claim with the appellant on the latter’s juristic personality, the respondents have completely compromised their right to challenge the trial Court’s jurisdiction. Learned counsel appears oblivious of the dichotomy in the Court’s procedural and substantive jurisdiction. Simply put, the one is circumscribed by Court rules while the other is as statutorily delineated.
While it is settled that the right to challenge a Court’s procedural jurisdiction may be waived by a party, it is trite that neither the Court nor the parties before it can confer on the Court a jurisdiction it statutorily lacks. See DR. MUSA NAGOGO V. C.P.C. & ORS (2012) LPELR – 15521 (SC), AG KWARA STATE V. ADEYEMO & ORS (2016) LPELR – 41147 (SC) and IKECHUKWU V. F.R.N. & ORS (2015) LPELR – 2445 (SC). In MOBIL PRODUCING (NIG) UNLIMITED V.
LASEPA & ORS(2002) LPELR -1887(SC) this Court in dwelling on the two types of the Court’s jurisdiction inter-alia enthused as follows:- “Notwithstanding that, sometimes, the distinction between substance and procedure is blurred, it is generally accepted that matters (including facts) which define the rights and obligations of the parties in controversy are matters of substance defined by substantive law, whereas matters which are mere vehicles which assist the Court or tribunal in going into matters in controversy or litigated before it are matters of procedure regulated by procedural Law.
Facts which constitute a cause of action are matters of substance and should be pleaded, whereas facts which relate to how a party is to invoke the jurisdiction of the Court a remedy pursuant to his cause of action is a matter of procedure outside the realm of pleadings……….. ‘generally speaking, it may be said that substantive rules give or define the right which it is sought to enforce and procedural rules govern the mode or machinery by which the right is enforced'” See also HUSSAIN ISA ZAKIRAI V. SALISU DAN’AZUMI MUHAMMAD & ORS (2017) LPELR – 42349 (SC).
In applying the foregoing principles to the facts of the instant case, it is evident that beyond respondents’ objection to the trial Court’s jurisdiction as raised in parties’ pleadings, which is procedural, the further objection raised in learned respondents counsel’s address at the close of the case pertains the Court’s substantive jurisdiction as statutorily circumscribed. By Section 6 (1) and (6)(b), the trial Court is only competent to adjudicate between juristic persons.
In the instant case, appellant’s juristic personality as raised challenges both the Court’s procedural and substantive jurisdictions. It is therefore manifestly unwise for learned appellant’s counsel to insist that the overriding issue can be discountenanced by the Court as the challenge to its jurisdiction only rests on non joinder of issue.
Furthermore, by Sections 131 – 137 of the Evidence Act, the appellant must bear the burden of that which it asserts. See PATRICK ZIIDEEH V. RIVERS STATE CIVIL SERVICE COMMISSION (2007) LPELR – 3544 (SC) and CHIEF EYO EDEM NSEFIK & ORS V. ROSEMARY MUNA & ORS (2013) LPELR – 21862 (SC).
Thus whether respondents objection to the trial Court’s competence is on account of either the state of pleadings of parties, the burden of proving those facts it asserts or, still, pursuant to Section 6(1) and (6) (b) of the 1999 Constitution (as amended) which provides for parties to any dispute the trial Court is competent to enquire into and determine, appellant’s failure to tender its certificate of incorporation in proof of its juristic personality, as rightly held by both Courts below, is fatal.
Appellant’s first issue is resultantly resolved in favour of the respondents.
It is academic to consider appellant’s second issue for the lower Court’s non consideration of appellant’s issue would only have become relevant if the trial Court which decision was to review, had the jurisdiction to determine appellant’s suit in the first place. It did not. The lower Court also lacked the jurisdiction to consider and determine any issue arising from the trial Court’s judgment arrived at without jurisdiction. I so hold.
As a whole, the concurrent judgments of the two Courts below are hereby further affirmed. Parties are to bear their respective costs.
CHIMA CENTUS NWEZE, J.S.C.: My Lord, Musa Dattijo Muhammad, JSC, obliged me with the draft of the leading judgement just delivered. I agree with His Lordship that this appeal is devoid of merit. It, therefore, deserves to be dismissed.
It is, indeed, surprising how counsel for the appellant underrated the formidable submission of the respondents’ counsel on the question of the legal capacity of his client. I had always, believed that, following the outcome of a long line of cases, our Courts should not no longer be burdened with this question.
Such cases include Olu of Warri v Chief Sam Warri Esi (1958) 3 FSC 94; Agbonmagbe Bank Ltd v. G. B. Ollivant Ltd and Anor (1961) ANLR 125; Ataguba and Co v. Gura Nigeria Ltd(2005) LPELR – 584 SC); Maersk Line and Anor v. Addide Investments Ltd and Anor (2002) LPELR – 1811 (SC); The Administrator and Executor of the Estate of Abacha v. Eke – Spiff and Ors (2009) LPELR – 3152 (SC) and so on.
True, indeed, I, always, entertained the view that every lawyer should know that our law attributes juristic personality, that is, the capacity to maintain and defend actions in Court to natural persons and artificial persons or institutions, Reptico S. A. Geneva v. AfriBank Nig Plc (2013) LPELR – 20662 (SC); Attorney General of Federation v. All Nigeria Peoples Party and Ors [2003] 12 SCM 1, 12; [2003] 18 NWLR (pt. 851) 182; [2003] 12 SC (pt. 11) 146.
They are, therefore, known to law as legal persons, Alhaji Afia Trading and Transport Company Ltd v Veritas Insurance Company Ltd 4 NWLR (pt. 38) 802. The consequence of the above formulation is that only natural persons or a body of persons whom statutes have, either expressly or by implication, clothed with the garment of legal personality can prosecute or defend law suits by that name, Knight and Searle v. Dove (1964) 2 All ER 307; Admin Estate of Gen. SanniAbachav Eke-Spiff and Ors (2009) 3 SCM 1; [2009] NWLR (pt. 1139) 92; Bank of Baroda v. lyaiabani Coy Ltd [2002] 12 SCM 7; J. K.
Randle v. Kwara Breweries Ltd [1986] 6 SC 1.
From a conspectus of a host of Supreme Court decisions, we are emboldened in our view that the only permissible mode of proving the legal personality of Incorporated Trustees under Part C of CAMA, or Registered Trustees under the old Land (Perpetual Succession) Act, when the adversary has not admitted that status to the plaintiffs, is by the production in evidence of the certificate of incorporation issued by the Corporate Affairs Commission [CAC], Reptico S. A. Geneva v. AfriBank Nig Plc (supra); ACB Nig Plc and Anor v. Emostrade Ltd {2002) LPELR – 207 (SC).
Thus, where a group of persons claim to have been registered as Incorporated Trustees under Part C of CAMA, they have to produce their certificate of incorporation, as nothing else would suffice, ACB Nig PLC v. Emostrade Ltd (supra). In effect, for Incorporated Trustees to establish their juristic personality, except if it is admitted by the opposing party, they must tender their certificate of incorporation under Part C of CAMA.
It is, thus, not enough to describe themselves as Incorporated Trustees, Bank of Baroda v. lyalabani Company Limited, [2002] 12 SCM 7. Indeed, there is even a binding authority which favours the view that the status of Incorporated or Registered Trustees can only be established as a matter of law by the production in evidence of the certificate of incorporation under Part C of CAMA, whatever may be the admission of the defendants, Registered Trustees of Apostolic Church v. AG Mid-West (supra); Geneva v. AfriBank (supra); J. K. Randle v. Kwara Breweries Ltd [1986] 6 SC 1.
The provisions of Section 2 Subsections (1) and (3) of the Land (Perpetual Succession) Act [now defunct], in parimateria with Section 673 (1); (2) and Section 679 (1) of the Companies and Allied Matters Act, 1990 [CAMA, for short], fell for construction in Registered Trustees, Apostolic Church v. Attorney General, Mid-Western State and Ors [1972] ANLR (Reprint) 359. Sowemimo JSC (as he then was), reading the judgement of the apex Court, held that: Although evidence was led as to named persons being made trustees, the certificate of incorporation was never produced.
It is therefore clear that unless the plaintiffs could comply with Section 6 of the Act [see, now Section 679 (3) of CAMA], they have no power to sue or be liable to being sued… In view of the above provisions of the Act, the plaintiff having failed to prove their incorporation by the production of their certificate of incorporation, have no power to sue…In the circumstances, the plaintiffs/appellants’ claim must fail… [Italics for emphasis]
In all, the burden of proving their status as Incorporated Trustees, therefore, lies on the persons who made such positive assertion about their incorporated status, Section 135 of the Evidence Act [then applicable to the proceedings]; Elias v Omo Bare [1982] 5 SC 2; Elias v. Disu (1962) 1 All NLR 214; Woluchem v. Gudi [1981] 5 SC 291; Agala and Ors v. Egwere and Ors [2010] 5 SCM 22, 37.
It is for these, and the more elaborate, reasons in the leading judgement that I, too, shall enter an order dismissing this appeal. I abide by the consequential orders in the said leading judgement. Appeal dismissed.
HELEN MORONKEJI OGUNWUMIJU, J.S.C.: I have had the privilege of reading before now, a draft of the erudite judgment of the majority of the full Court just delivered by my learned Brother HON. JUSTICE MUSA DATTIJO MUHAMMAD JSC. I agree with the reasoning and conclusions contained therein.
This appeal is based on the concurrent findings of facts by the High Court and the Court of Appeal that the Appellant is not a juristic person and therefore lacks the capacity to institute this suit. The issues raised by both sides to this appeal are settled, and I am persuaded after reading the record and the Briefs of Counsel that these issues distilled are clear and sufficient to be used to determine the Appeal, they are: – ISSUE 1 Whether the Court of Appeal was right in holding that the Appellant had no legal capacity or locus standi to institute the action against the Respondents.
ISSUE 2 Whether the Court of Appeal is bound to consider all issued in controversy before it before giving its Judgment.
OPINION ISSUE 1 The crux of the first issue is whether the Appellant has legal capacity, that is, whether it has a juristic personality separate from its owners. A perusal of all pleadings filed from the origin of this suit would show that the Appellant was at all times material to this action was referred to as “The Owners of M. T. OSATANKINO” a limited liability company registered in Cyprus. The Appellant in paragraph 1 of its amended statement of claim stated:- “The plaintiffs at all times material to this action are the owners of the “M.
T OSTANKINO” and are a limited company registered in Cyprus”
The Respondents in their amended statement of defense responded thus: “The defendants are not in a position to either acceptor deny Paragraph 1 of the statement of claim, the plaintiff is therefore under a duty to proof (sic) same strictly”
Therefore, the Respondents joined issue with the Appellant by the pleadings, thus, shifting the burden to the Appellant to prove that it is a limited liability company capable of being sued and to sue in its own name. The Appellant erroneously contended that the relevant issue was its claim against the Respondent and not its legal personality. The trial Court held that the onus had shifted to the Appellant to prove its corporate existence.
The Companies and Allied Matters Act, 2019 in Section 78. (1) provide thus: Subject to Sections 80 – 83 of this Act, every foreign company which before or after the commencement of this Act was incorporated outside Nigeria, and having the intention of carrying on business in Nigeria, shall take all steps necessary to obtain incorporation as a separate entity in Nigeria for that purpose, but until so incorporated, the foreign company shall not carry on business in Nigeria or exercise any of the powers of a registered company and shall not have a place of business or an address for service of documents or processes in Nigeria for any purpose other than the receipt of notices and other documents, as matters preliminary to incorporation under this Act.
Therefore, the ascertainment of the corporate identity of the Appellant is indeed relevant to the success of its claim.
In Nduka v. Ezenwaku (2001) 6 NWLR Pt. 709 Pg. 494 at Pg. 517 the Court of Appeal held that the only way to prove the existence of a company when such is challenged, is the production of the Certificate of Incorporation of the company.
Similarly, Section 41(6) of The Companies and Allied Matters Act, 2019 reads: – 41(6) Certificate of incorporation shall be prima facie evidence that all the requirements of this Act in respect of registration and matters precedent and incidental to it have been complied with and that the association is a company authorized to be registered and duly registered under this Act.
The irrefutable position of the law is that upon incorporation, a company becomes a body corporate i.e. it acquires a separate legal personality with autonomous identity, it can sue and be sued in its own name, own and dispose of property and enter into contracts etc. See Marina Nominees v. F.B.I.R. (1986) 2 NWLR Pt. 20 Pg. 48; Afolabi v. Western Steel (2012) 7 SCNJ 48 at Pg.68. The age-long general rule of corporate legal personality was laid down in the locus classicus case of Salomon v. Salomon (1897) AC 22.
See also The Registered Trustees of Master’s Vessel Ministries Nigeria Incorporated v. Rev. Francis Emenike & Ors (2017) LPELR-42836(CA).
A lawsuit is in essence, the determination of legal rights and obligations of the parties in any given situation. Therefore, only such natural and juristic persons in whom the rights and obligations can be vested are capable of being proper parties to the suit before the Courts of law. Following this general rule, where either of the parties is not a legal person capable of exercising legal rights and obligations under the law, the other party may raise these facts as a preliminary objection.
In other words, no action can be brought by or against any party other than a natural person or persons unless such party has been given by statute, expressly or impliedly or by common law, either a legal personality under the name by which it sues or is sued or a right to sue or be sued by that name. See EMCO & Partners Ltd & Ors v. Dorbeen (Nig) Ltd & Anor (2017) LPELR-43453(CA)
By the pleadings of the parties, it is glaring that the issue of the legal personality of the Appellant was an issue for determination between the parties as it goes to the foundation of the suit and the jurisdiction of the Court to determine same. The Appellant had enough time from when the litigation started up till the appeal to have settled this issue by substituting another party but it failed and refused to do so.
Therefore, based on the pleadings of both parties and the evidence led at the trial as well as the concurrent findings of the lower Court, I hold that the Appellant had no legal capacity to institute the action against the Respondents thereby making the suit and any subsequent appeal incompetent.
ISSUE 2 On the second issue for determination, the Court of Appeal was wrong in its refusal to determine all the issues in controversy. The lower Court in its judgment dismissed the case of the Appellant in its entirety and held as follows at Pg. 242 of the Record of this appeal: “…bearing the aforesaid in mind, I am to state that it is a condition precedent to the exercise of jurisdiction that a competent party is before the Court.
In this instant case, where the Plaintiffs Statement of Claim, the Plaintiff cannot be regarded as a juristic person with legal personality who can sue or be sued in a Court of competent jurisdiction to institute this action and I so hold. In conclusion therefore I found as follows: – 1. That the 4th defendant M.T Bata 1 was not negligent in the manner in which she was brought out of the side of the Plaintiffs vessel M. T Ostankino on the 3rd and 4th of August 2003 2. That the defendants are not liable for the various claims put by the Plaintiff 3.
There is no evidence before this Court to prove that the plaintiff who is described as a limited Liability company in the Statement of Claim is in fact a limited liability company. And as such it cannot be regarded as a juristic person capable of instituting this action”
A penultimate Court should determine all issues in controversy before it, as it does not enjoy the luxury of a final Court which may not go further after the issue of jurisdiction is resolved. Section 22 of the Supreme Court Act 2011 Cap 424 provides that the Apex Court has very wide powers in respect of matters brought before it.
It may make an interim order or grant an injunction which the Court below is authorized to make or grant and may direct any necessary enquires or account to be made or taken and generally shall have full jurisdiction over the whole proceeding as if the proceeding had been instituted and prosecuted in the Supreme Court as a Court of first instance and rehear the case in whole or in part. Hence, by this Section, this Court may make an order for determining the real question in controversy in the appeal. See also, Section 137(1) of the Evidence Act. Similarly, in Vincent Egharevba v.
Osagie (2009) 12 SCNJ Pg. 166 at Pg. 188 SC this Court held thus; “This Court has said it over and over again that any issue properly raised and canvassed before a trial Court or an appellate Court must be given a fair-hearing and considered. This is so in order to avoid a miscarriage of justice, See Ugbodume v. Abiegbe (1991) 8 NWLR (pt.209) 274… The Respondent’s claim could not be left hanging in the air. The Court of Appeal ought to have madeconsequential orders granting him any reliefs which it considered were supported by the evidence before the trial Court.
It would appear that the Court of Appeal did not give enough consideration to the issues before it in its rather hasty and sketchy judgment.”
Therefore, issue two is resolved in favour of the Appellant. However, in the circumstances of the facts of the case where there has been no miscarriage of justice occasioned against the Appellant, I hold that the decision of the Lower Court should not be reversed. It is not every error in the judgment of a Court that leads to the setting aside of the judgment. The error must be so perverse and has caused gross miscarriage of justice. See P. C Mike Eze v. Spring Bank Plc(2011) 12 SCNJ Pg. III; Abiodun v. F.R.N (2018) 11 NWLR Pt. 1629 Pg. 86 SC; Mohammed v.
State (2018) 13 NWLR Pt. 1635 Pg. 60 SC.
Even though it was wrong of the Lower Court to consider the case on the merit, in view of the resolution of issue 1, no miscarriage of justice has been occasioned.
I am of the humble view that this appeal has no merit and thus the reliefs urging the Court to nullify the orders of the lower Court is hereby denied and the appeal is dismissed. Appeal Dismissed. I abide by the order as to cost.
ABDU ABOKI, J.S.C.: I had the privilege of reading before now, a draft of the lead judgment just delivered by My Learned Brother MUSA DATTIJO MUHAMMAD, JSC. I agree with his reasoning and conclusions contained therein.
This is an appeal against the judgment of the Court of Appeal, holden at Lagos (hereafter called the Court below), delivered on the 12th of January, 2011.
The Appellant, as Plaintiff at the Federal High Court, sitting in Lagos, instituted an admiralty action in rem, against the Respondents, claiming damages for loss suffered as a result of “collision” with the 4th Respondent’s ship which occurred at Offshore Lagos Nigeria, on 3rd and 4th August 2002. The Trial Court in its judgment held that the Appellant failed to prove that it was a juristic person, thereby lacking the locus standi to institute the action. The Appellant’s suit was dismissed. Being aggrieved by the decision of the Trial Court, the Appellant appealed to the Court below.
The Court below in its judgment, affirmed the decision of the Trial Court and held that the Trial Court lacked the jurisdiction to adjudicate over the suit, due to the Appellant’s lack of locus standi.
Still aggrieved by the judgment of the Court below, the Appellant appealed to this Court. Its Notice of Appeal filed on the 17th of January, 2011 is upon two grounds, wherein it formulated two issues for this Court’s consideration. They are: 1.
Whether the Court of Appeal was right in holding that without the production of the certificate of incorporation of the Appellant, the Appellant had no legal capacity or locus standi to institute the action against the Respondents, when the legal capacity or locus standi of the Appellant to institute the action was not a fact in issue between the parties? 2.
Whether the Court of Appeal was right in refusing and/or failing to consider the other two issues (1 and 3) submitted for determination by the Appellant, which arose from the grounds raised in the Appellant’s Notice of Appeal dated the 9th day of March 2007 and which said issues were argued in the Appellant’s Brief of Argument dated the 6th day of March 2009.
The Respondents also distilled two issues for determination, namely: 1. Whether or not the Court of Appeal was right in holding that the failure of the Appellant to prove its legal personality amounts to lack of locus standi to institute the action thereby denying the trial Court the jurisdiction to entertain the suit? 2. Whether or not a Court which lacks jurisdiction to entertain a suit due to a party’s lack of locus standi can determine the merits of the suit?
My Learned Brother has brilliantly dealt with the issues raised in this appeal and I adopt his judgment as mine. However, and just for the purpose of emphasis, I will put in one or two words of mine in answer to the question of whether or not the Appellant is a juristic personality capable of suing and being sued. In other words, does the Appellant possess the requisite locus standi to sue the Respondents?
The Appellant herein has argued that the legal capacity or locus standi of the Appellant to institute the action was not a fact in issue between the parties. With respect to learned Senior Counsel for the Appellant, this is not a true representation of the record before this Court.
At Paragraph 1 of its Amended Statement of Claim, the Appellantaverred as follows: “The Plaintiffs at all times material to this action are the owners of the “M.T. OSTANKINO ” and are a limited company registered in Cyprus”
The Respondents denied the averment and asserted at Paragraph 2 of their Amended Statement of Defence/Counter Claim that: “The Defendants are not in a position to either accept or deny Paragraph 1 of the Statement of Claim, the Plaintiff is therefore under a duty to prove same strictly.”
To my mind, by asking the Appellant to prove strictly the fact of its incorporation, the Respondents who are in no position of knowing whether or not the Appellant is incorporated, have effectively traversed the Appellant’s assertion of being a corporate body and issues having been thus joined on the legal personality of the Appellant, it was incumbent upon the Appellant to prove its legal personality, by producing a Certificate of Incorporation. In Dairo & Ors v.
The Registered Trustees of the Anglican Diocese of Lagos (2017) LPELR 42573 (SC), this Court held that: “The law is trite that the plaintiff who takes out on action must be competent to institute such on action. Whenever hiscompetency to institute the action is challenged the onus is on him to prove that he has legal capacity to institute the action. The competency to institute an action also determines the competency of the action itself …… Once the juristic capacity is challenged, the fact of incorporation becomes a fact in issue.
The onus of proving that fact lies on the party claiming to be incorporated in the name it has taken out the action as the plaintiff. The burden of proof is discharged upon the production of the Certificate of Incorporation. This is a matter of fact.” In the extant appeal, the Appellant’s failure to tender its Certificate of Incorporation in proof of its juristic personality is fatal to its case.
The consequence is that the juristic personality of the Appellant to sue and be sued is not established and the two Courts below were right to hold that the Appellant had no legal capacity or locus standi to institute the action against the Respondents. It is on account of this, and the more elaborate reasons contained in the lead Judgment of My Learned Brother, MUSA DATTIJO MUHAMMAD, JSC that I hold that this appeal is devoid of merit and
I accordingly dismiss it.
I also abide by the consequential orders in the Lead Judgment.
TIJJANI ABUBAKAR, J.S.C.: My Lord and learned brother MUSA DATTIJO MUHAMMAD, JSC granted me the privilege of reading in draft the comprehensive leading Judgment prepared and rendered in this appeal. My lord fully and sufficiently dealt the issue in contention, I am therefore in full agreement with the reasoning and conclusion and adopt the Judgment as mine. I have nothing extra to add. I abide by all consequential orders including the order on costs.
Appearances
OWNERS OF THE MT “MARIGOLD” v. NNPC & ANOR
On Friday, January 28, 2022
SC.9/2010Before Their Lordships
Ejembi Eko Justice of the Supreme Court of Nigeria
Mohammed Lawal Garba Justice of the Supreme Court of Nigeria
Ibrahim Mohammed Musa Saulawa Justice of the Supreme Court of Nigeria
Tijjani Abubakar Justice of the Supreme Court of Nigeria
Between
Judgment
MOHAMMED LAWAL GARBA, J.S.C. (Delivering the Leading Judgment): By the Motion on Notice dated and filed on the 19th April, 2006, before the Lagos Division of the Court of Appeal, (Court below), the Appellant prayed for:- “a) An order granting the Appellant herein extension of time within which to apply for leave to appeal against the ruling of the Federal High Court, Lagos per Honourable Justice E. O.
Sanyaolu dated 7/4/2003 Suit No: FHC/L/CS/293/98. b) An order granting leave to the Applicant herein to appeal against the said ruling dated 7/4/03 in the said suits and for leave to appeal on grounds of facts and/or mixed law and facts. c) An order for extension of time within which to appeal against the ruling aforesaid and for such order or further orders as this Honourable Court may deem fit to make in the circumstances. Dated this 19th day of April, 2006.”
The motion was supported by a 19 paragraphs Affidavit deposed to by a Legal Practitioner in the Chamber or Appellant’s Counsel to which were annexed, copies of documents marked as exhibits.
On the 20th November, 2009, the motion was moved by learned Counsel for the Appellant; Mr. Ferdinand Egede, who also deposed to the Affidavit in support thereof and urged the Court below to grant same while Mrs. Hope Nwambe, counsel for the Respondent did not file a Court-Affidavit in reaction to the affidavit in support of the motion but only opposed the request for an adjournment.
The Court below rendered the following ruling, thereafter:- “The application dated 19th April, 2006 and filed on the same day seeks the trinity prayers for extension of time, for leave to appeal and extension of time within which to appeal against the ruling of the Federal High Court, Lagos State delivered on the 7th April, 2003 in suit no. FHC/L/SC/293/98. Same is supported by an affidavit of nineteen paragraphs deposed to by Egede Fedinard, the learned counsel for the applicant who relied on all.
For the application of this nature to earn the favour of the Court, the applicant must satisfy two conditions as restated in Order 3 Rule 4(2) of the Rule of this Court. In other words, it is incumbent on the applicant to satisfactorily explain good and substantial reasons why he failed to appeal within time.
Secondly that the grounds ofappeal must be substantial and arguable and same requirement which must co-exist conjunctively with relevance to the affidavit in support, the applicant counsel relied on paragraphs 8 – 15 of same and urged specifically that the error to come within time is that of counsel. Specifically, paragraph 13 accuses the former counsel Mr. Ubong – Abasi Iyang who was said to have left chamber in June last year and was therefore responsible for the failure to have filed the notice within time.
It is interesting to note that by the use of the phrase June last year, is not enough and specific a time when the said counsel left the chambers. The learned counsel, Mr. Egede has also admitted before us that the accusation lodged against Mr. Ubong – Abasi Iyang was not brought to his notice. Casting aspersions on a counsel’s integrity is very serious matter which needed to have been drawn to his attention. The failure to do so is a serious defect on the application.
Furthermore and even in the absence of any counter-affidavit, the requirement placed upon the applicant is a burden which he ought to discharge. He cannot rely on the weakness of the respondent to prove his case. At any rate, the facts of the affidavit as deposed to are those within the knowledge of the applicant and to which the respondent is not obliged to respond to. The applicant on the totality of his application has not explained his failure to file his notice of appeal three years after the ruling was delivered.
The 1st condition having not explained, it is unnecessary to dwell into the 2nd relating to the grounds of appeal. The satisfaction of the second is dependent upon the 1st. On the totality, the application lack merit and same is accordingly refused and dismissed. Costs of N2,500.00 to the respondent.”
Against the ruling, the Appellant brought this appeal vide the undated Notice of Appeal which appears at page 28 – 31 of the Record of Appeal, (without particulars):- “GROUND 1 The learned Justice of the Court of Appeal erred in law in dismissing the Appellant’s Motion on Notice dated 19th April, 2006 for, inter alia, an order for extension of time within which to appeal against the ruling of the Federal High Court, Lagos dated 07/04/2003 on the grounds that “the Applicant on the totality of his application has not explained his failure to file his Notice of Appeal three years after the ruling was delivered.
GROUND 2 The learned Justices of the Court of Appeal misdirected themselves in law when they held at page of their ruling that; “Casting aspersions on a counsel’s integrity is a very serious matter which needed to have been drawn to his attention. The failure to do so is a serious defect on the application. GROUND 3 The learned Justice of the Court of Appeal erred in law in refusing Appellant’s learned Counsel’s application for adjournment to enable him put the Counsel referred to, in the supporting affidavit, Mr.
Obong-Abasi Inyang, on notice as was being insisted upon by the learned Justices on the ground that the said application for adjournment was belated. GROUND 4 The learned Justices of the Court of Appeal erred in law when they ignored the overwhelming affidavit evidence of inadvertence of Counsel and proceeded to refuse the Applicant’s application thereby visiting the sin or inadvertence of counsel on the litigant.”
In line with the rules of the Court, learned counsel for the parties filed briefs of argument for theprosecution of the appeal as follows:- 1. Appellant’s brief filed on the 3rd February, 2010 and 2. Respondent’s brief filed on the 6th April, 2010.
Four (4) issues, in the tenor of the grounds of appeal, were set out at paragraph 3.1 on page 5 of the Appellant brief, while at page 10 of the Respondents’ brief, it said that, the Appellant’s issues raise a sole question challenging the exercise of the discretionary power of the Court below.
Now, the right of appeal against the decisions of the Court below to this Court is donated and vested in a party or person/s having interest, as the case may be, in a matter who is dissatisfied with them, by the extant 1999 Constitution. (as altered).
Section 233 (1) of the Constitution vests exclusive jurisdiction in this Court to hear and determine appeals from the Court below.
Then in Subsections (2) and (3), Section 233 provides that:- “233 (2) An appeal shall lie from decisions the Court of Appeal to the Supreme Court as of right in the following cases: (a) where the ground of appeal involves questions of law alone, decisions in any civil or criminal proceedings before the Court of Appeal;
(b) decisions in any civil or criminal proceedings on questions as to the interpretation of application of this Constitution. (c) decisions in any civil or criminal proceedings on questions as to whether any of the provisions of Chapter IV of this Constitution has been, is being or is likely to be, contravened in relation to any person. (d) decisions in any criminal proceedings in which any person has been sentenced to death by the Court of Appeal or in which the Court of Appeal has affirmed a sentence of death imposed by any other Court;
(3) Subject of the provisions of Subsection (2) of this section, an appeal shall lie from the decisions of the Court of Appeal to the Supreme Court with the leave of the Court of Appeal or the Supreme Court.” Relevant to this appeal are the provisions or Subsection (2) (a) which prescribe that an appeal shall lie from the decisions of the Court below to this Court as of a matter of right on the part of an Appellant or a party who desires to appeal against same, where the ground/s of the appeal involves questions or issues of law alone.
The import of the provisions is that an appeal from any decision of the Court below to this Court which raises or involves questions or issues of pure law, alone, is one that is at the unfettered discretion of the Appellant or party, as of right to be brought or filed in the Court subject only to the procedure prescribed in subsection (3) and Section 233. See Oredoyin v. Arowolo (1989) 4 NWLR (pt. 114) 172, Ngige v. Obi (2006) 14 NWLR (pt. 999) 1, Minister, P. M. R. v. Exposhipping Line Nig. Ltd (2010) 12 NWLR (pt. 1208) 26, (SC).
The right appeal, being as of right, is to be exercised only in accordance with the stipulations of practice and procedure of the Court, but freely by the party and without prior resort to either the Court below or this Court before the filing or bringing a proper, valid and competent appeal which the Court is imbued with the requisite jurisdiction to entertain and adjudicate upon. See Clement v. Iwuanyanwu (1989) 4 SC (pt. 11) 89, (1989) 1 NWLR (pt. 107) 39, Saraki v. Kotoye(1992) 11-12 SCNJ, 26, (1992) 1 NWLR (pt. 264) 156, Nalsa & Team Associates v.
NNPC (1991) 11 – 12 SC, 83. (1991) 8 NWLR (pt. 212) 652. Here, because the appeal is as of right, the permission, go-ahead or leave of the Court is not required and so not necessary before the appeal can be validly brought or filed in the Court.
However, where an appeal from the decisions of the Court below to this Court is predicated or based on ground/s which raises or involves questions or issues which are not or pure law alone, but involves or raises questions or issue of either mixed law and facts or of facts alone, then the provisions of Subsection (3) of Section 233 come in to play and apply to the right of appeal, which would, in the circumstances, not be exercised as of right, but in accordance with the stipulation therein.
The stipulation is that where the ground/s of an appeal against the decision of the Court below involves or raises questions which are not of pure law alone, as set out in the provisions of Subsection (2), then the appeal shall lie to this Court with the leave of Court below or of this Court.
The exercise of the right of appeal, in such a situation, is fettered by the requirement of prior leave or permission of the Court below or this Court before the filing or bringing a valid appeal in this Court which will in turn, vest the Court with the requisite competence and jurisdiction to entertain and adjudicate over it.
The leave of Court is made a condition precedent to be satisfied or fulfilled for the validity and competence of an appeal to this Court from the decisions of the Court below which involves or raises questions of either mixed law and fact or facts alone, under the provisions of Subsection (3). It is the prior leave of Court; first sought and obtained, that constitutes the fulfillment or satisfaction of the condition precedent for the filing or a valid and competent appeal which will vest the Court with the requisite judicial vires and authority to entertain such an appeal.
The absence of the required and so necessary leave of Court in such a situation, will deprive the Court of competence and jurisdiction to hear or adjudicate over the appeal. There is a formidable body of decisions by this Court on this position of the law which has made it common knowledge in both the Court below and this Court. For instance, in the case of Kashadadi v. Sarkin Noma (2007) 6 SC (pt. 1) 68m (2007) 13 NWLR (pt. 1052) 510, Tobi, JSC, restated that:-
“By the Constitution, the Supreme Court cannot hear an appeal on grounds of mixed law and facts unless leave of the Court or the Court of Appeal is obtained. Where an appeal requires leave of Court and the leave is not sought for and obtained, the appeal is incompetent and will be struck out. This is because a Court of competent jurisdiction has no jurisdiction to hear an incompetent appeal.” See in addition, Nalsa& Team Associates v. NNPC (supra), Russel v. Russel (1987) 2 NWLR (pt. 57) 437, Faleye v. Otapo (1987) 3 NWLR (pt. 64) 186, Comex Ltd. v. N.A.B.
Ltd. (1997) 3 NWLR (pt. 496) 643 (SC), Ifeajuna v. Ifeajuna (1999) 1 N WLR (587) 492, Ukpong v. Comm. For Finance & Eco. Dev. (2006) 11-12 SC, 36, (2006) 19 NWLR (pt. 1013) 187, SPDCN Ltd. v. Katad Nig. Ltd. (2006) 1 NWLR (pt. 960) 199, Opuiyo v. Omoniwari (2007) 6 SC (pt. l) 35, (2007) 16 NWLR (pt. 1060) 415.
In view of the above foundation, I now turn to look, closely, and consider the grounds contained on the Appellants’ Notice of Appeal, as they appear above, which was filed as of right in order to see if and whether they all or some of them raise or involve questions of pure law alone in order for the Court to be properly seized of the requisite jurisdiction to adjudicate over the appeal without the need for leave of Court.
Perhaps, before embarking on such consideration, I should restate the now elementary position of the law that due to its fundamental and crucial nature, the issue of jurisdiction of a Court to entertain and adjudicate over a matter or, as in this case, an appeal, as a matter of substantive law, can be raised at all stages of proceedings of all the Courts in the judicial hierarchy, at any time, anyhow and by any of the parties or the particular Court, suo motu.
It is never late to raise the issue or question of the jurisdiction of the Court to adjudicate over a matter, case or appeal, even viva voce and once it arises or is raised, the Court has the duty to determine it first before proceeding to deal with other issues that may be raised therein, if necessary. The reason for this inviolable position of the law is that all judicial proceedings of a Court conducted without the requisite jurisdiction, along with any product thereof, are null, void and of no legal value and effect ab initio, howsoever otherwise well conducted. See Madukolu v.
Nkemdilim(1962) SCNLR, 341, (1962) All NLR, 587, Odiase v. Agho (1972) 1 All NLR (pt. 1) 170, Bronik Motors Ltd. v. Wema Bank Ltd. (1983) 7 SC, 158, Oloriode v. Oyebi (1984) 5 SC, 260, Altine v. Afribank Plc. (2000) 15 NWLR (pt. 689) 181 (SC), Senate President v. Nzeribe (2004) 41 WRN, 60 (SC), Cotecna Int. Ltd. v. Ivory Merchant Bank Ltd (2006) 5 SCM, 17, NDIC v. CBN (2002) 7 NWLR (pt. 766) 272 (SC), Equity Bank of Nigeria Ltd. v. Halilco Nig. Ltd. (2006) 7 NWLR (pt. 980) 568 (SC), Shitta-Bey v. A.G., Federation (1998) 7(pt. 11) 121, (1998) 10 NWLR (pt. 570) 392, Onyema v.
Oputa (1987) 3 NWLR (pt. 60) 259 (SC), Utih v. Onoyivwe (1991) 1 NWLR (pt. 166) 166 (SC), Durwode v. State (2000) 15 NWLR (pt. 691) 467 (SC), Otukpo v. John (2000) 8 N WLR (pt. 669) 507 (SC), among the litany of the pronouncements on the position by this Court.
In addition, the issue of jurisdiction to entertain an appeal by this Court can be raised at the judgment stage by the Court without the need to call for address and proceed to decide it, being the final appellate Court in Nigeria. In the recent case of NNPC v. Roven Shipping Ltd (2019) 9 N WLR (pt. 1676)67 at 92, paragraphs 13 – D, M. D. Muhammad, JSC, repeated the law when he said:- “Now, it is beyond contention that the requirement of giving parties the opportunity to address a Court on an issue raised by the Court suo motu is a general rule which, like all others, has exceptions.
Decisions of this Court abound specifying these exceptions. See Effiom v. C.R.S.I.E.C. (2010) 14 NWLR (pt. 1213) 106, Tukur v. Government of Gongola State (1989) 4 NWLR (pt. 117) 517 and Bola Omoniyi v. Jacob Adegboyega Alabi (2015) LPELR-24399 (SC) (2015) 6 NWLR (pt. 1456) 572.
It has been held by this Court in those decisions, that the principle that whenever a Court raises an issue not within the contemplation of parties and suo motu parties should be given a hearing before a decision on the issue so raised, applies mainly to issues of fact and that, in special circumstances, an issue of law or jurisdiction may be raised suo motu and without hearing the parties, decide upon the issue so raised.” This position is an affirmation or the earlier pronouncement by Rhodes- Vivour, JSC, in Omokuwajo v.
FRN (2013) 9 NWLR (pt. 359) 300 at 332, paragraphs D – E whereinHis Lordship stated that:- “The need to give the parties a hearing where a Judge raises an issue on his own motion or suo motu would not be necessary if: (a) the issue relates to the Court’s own jurisdiction. (b) both parties are/were not aware or ignore a statute which may have bearing on the case. That is to say where by virtue of statutory provision, the Judge is expected to take judicial notice. See Section 73 of the Evidence Act.” See also Katto v. CBN (1991) 9 NWLR (pt. 316) 159 at 178, Ejowhomu v.
Edok-EterMandilas Ltd. (1986) 5 NWLR (pt. 39) 1, Olutola v. Unilorin (2005) All FWLR (pt. 245) 1154, Alims Ltd. v. UBA, Plc (2013) 1 MJSC (pt. 1) 156 at 170.
It may be recalled that I did not set out the particulars provided under each of the grounds of the appeal as contained on the Notice of Appeal. My reason for so doing is that all the particulars set out under each of the grounds are mere arguments in support of the grounds and not facts which flow directly from and which should ossify the complaints of alleged misdirection or errors of law in the grounds. See Agbara Estates Ltd. v. Odejayi (2010) LPELR- 3650, Atuyeye v. Ashamu (1987) 1 NWLR (pt.49) 267, Rinco Constr. Co. Ltd. v. Veepee Ind. Ltd. (1995) 5 NWLR (pt. 240) 248.
I now turn to the grounds.
From the notice set out on the Notice of Appeal, the decision of the Court below complained against by the Appellant is contained in the Ruling delivered on the 20th November, 2006, on the motion/application for the trinity prayers of extension of time to seek leave, leave and extension of time to appeal.
Apparently therefore, the real complaint in the appeal and all the grounds on the Notice of Appeal is against the exercise by the Court below of its judicial discretion conferred on it by the provisions of Section 25 of the Court of Appeal Act, as well as Order 3 Rule 3(4) of its Rules, 2007 to entertain such applications/motions. See Nigerian Lab. Corp. v. Pacific Merchant Bank Ltd (2012) LPELR – 7859 (SC), Mini Lodge Ltd v. Ngei (2009) 18 NWLR (pt. 1173) 254, Adejumo v. state (2006) 9 NWLR (pt. 986) 627.
It is known that the exercise of any Judicial discretion, which has been described in its general usage, as the power and freedom to decide what should be done in a particular situation or the exercise of judgment by a judge or Court based on what is fair under given circumstances, guided by rules and principles of law, See Akinyemi v. Odu’a Invest. Co. Ltd. (2012) LPELR 8270 (SC), is predicated on appraisal and evaluation of facts presented before the Court by the parties in a case, but in particular, the facts from the party seeking the exercise of the discretion in his favour.
Speaking generally, it is said that a ground of appeal challenging the exercise of such a discretion, would be one of, at best, mixed law and facts, depending on the nature of the complaint therein. Obinyiriuka v. Aliche (1991) 4 N WLR (pt. 183) 87 at 95.
In this appeal, all the four (4) grounds complain about the appraisal and evaluation of the facts deposed to in the Affidavit in support of the motion filed by the Appellant before the Court below seeking the exercise of the discretion for extension of time and leave to appeal.
Although an Affidavit qualifies as and is evidence, the exercise of the discretion by the Court below involved the evaluation or such evidence on the basis of the facts deposed to in the affidavit in order to make the finding of facts in its ruling and the law is now firmly settled that a ground which challenges the evaluation of evidence, is at best, one of mixed law and facts and not of pure law alone. See UBA Ltd v. Stahlbau GMBH & Co. KG, (1989) 1 NWLR (pt. 110) 374 (SC), Obinyiriuka v. Aliche (supra)
In the case of Ehinlanwo v. Oke (2008) 6 – 7 SC (pt.
II) 123, (2008) 16 NWLR (pt. 1113) 357, Onnoghen, JSC (later CJN) stated law, in the determination of whether a ground or appeal is one of law or mixed law and facts, inter alia, that:- “(ii) A ground which challenges the findings of fact made by the trial Court or involves issues of law and fact can only be argued with the leave of the Appellate Court. (iii) where the evaluation of fact established by the trial Court before the law in respect thereof is applied, is under attack or question, the ground of appeal is one of mixed law and facts. (iv) where the evaluation of evidence tendered at the trial Court is exclusively questioned, it is a ground of facts.”
The grounds on the appellant’s Notice of Appeal clearly, come and are wholly covered by the above principles because they all seek to question or challenge the appraisal and evaluation of the facts in the Affidavit and the findings of facts made by the Court below on application of its rules to the facts.
In these premises, the grounds are not of pure law alone to clothe the Appellant with the right of appeal as of right as stipulated under the provisions of Section 233 (2) (a), rather, the grounds are at best, of mixed law and facts, which by dint of the provision of Section 233 (3), (as shown earlier), require prior leave of either the Court below or this Court as a condition precedent, to be validly and competently brought and for the Court to have the requisite jurisdiction to adjudicate on same.
I have also demonstrated before now, that the absence of such leave renders an appeal, incompetent and deprives the Court of the jurisdiction to adjudicate over it. That is the fate of this appeal.
The above position, as it is apart, I have also noticed that the Notice of Appeal was in fact signed by proxy; by way of a contraption of a signature, for the person whose name was set out clearly.
The name of the person who inscribed or appended the contraption of the signature on behalf of and for the person whose name was set out is not stated or written in order to be identified for the purpose of determining whether he is a legal practitioner known to law by virtue of the provisions of Sections 2 (1) and 24 of the Legal Practitioners Act (LPA) and so competent to sign the Notice of Appeal, as an initiating process in this Court.
The law is that once it is not certain and clear as to the actual person who signed a process to be filed in Court by clear indication of the name, the process is incurably incompetent. See SLB consortium Ltd. v. NNPC (2011) 9 NWLR (pt. 1352) 317, Nigerian Army v. Samuel (2013) 14 NWLR (pt. 1375) 446 at 485, Okarika v. Samuel (2013) 7 NWELR (pc. 1352) 19.
In the appellate Courts, the Notice of Appeal is the initiating process and so the foundation of an appeal over which the requisite jurisdiction of the appellate Court can validly by invoked. It is sine qua non. Any defect in the Notice of Appeal would render it incompetent, thereby depriving the appellate Court of the jurisdiction to entertain and adjudicate over an appeal. In law, in the absence of a valid and competent Notice of Appeal, there will be no appeal over which anappellate Court could adjudicate or conduct judicial proceedings, ab initio. SeeRe: Osibakoro D.
Otuedon (1995) 4 NWLR (pt. 392) 655, Uwazurike v. A. G., Federation (2007) 2 SC, 19, (2007) 8 NWLR (pt. 1035), Odunze v. Nwosu (2007) 5 -6 SC, 40, (2007) 13 NWLR (pt. 1050) 1, Adelekan v. Ecu-Line NV (2006) 5 SC (pt. II) 32, (2006) 12, NWLR (pt. 993) 33, Shelim v. Gobang (2009) 12 NWLR (pt. 1156) 435, Oketie v. Olughor (1995) 5 SCNJ, 217 and Thor Ltd. v. FCMB Ltd. (2002) 2 SCNJ, 85.
On the ground that the Notice of Appeal was signed by a proxy who did not clearly and specifically write his name and cannot be identified and is not reasonably identifiable, it is incurably defective and incompetent. It is incapable of invoking the jurisdiction of this Court, over the purported appeal and is liable to be struck out.
In the final result, for the aforenamed reasons, the undated Notice of Appeal at pages 28 – 31 of the Record or Appeal is struck out for being incompetent.
There shall be costs assessed at two (2) million naira (2,000,000.00) in favour of the Respondent to be paid by the Appellant, for the prosecution of this 2010 appeal in this Court.
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN, J.S.C.: The instant appeal is against the exercise of discretion by the lower Court in refusing to grant the appellant’s motion on notice filed on 19/4/2006 seeking the trinity prayers, to wit: extension of time to seek leave to appeal, leave to appeal and extension of time to appeal, against the ruling of the Federal High Court delivered on 7/4/2003 in suit no. FCH/L/CS/293/98.
It is an application that seeks the exercise of the Court’s discretion. Black’s Law Dictionary 8th edition at page 499, defines “judicial discretion” thus: “The exercise of judgment by a judge or Court based on what is fair under the circumstances and guided by the rules and principles of law: a Court’s power to act or not to act when a litigant is not entitled to demand the act as a matter of right.”
In The Owners of M.V. Lupex Vs Nigeria Overseas Chartering & Shipping Ltd. (2005) 15 NWLR (Pt.844) 469, it was held, per Uthman Mohammed, JSC, that: “An exercise of discretion is a privilege to decide and act in accordance with what is fair and equitable under the peculiar circumstances of a particular case guided by the spirit and principles of law.” In effect, the exercise of discretion involves a consideration of surrounding facts and circumstances. The appeal herein was filed as of right.
By Section 233(2) of the 1999 Constitution, as amended: “an appeal shall lie from decisions of the Court of Appeal to the Supreme Court as of right in the following cases – (a) Where a ground of appeal involves questions of law alone decisions in any civil or criminal proceedings before the Court of Appeal.
Section 233(3) provides: (3) Subject to the provisions of Subsection (2) of this Section, an appeal shall lie from the decision of the Court of Appeal to the Supreme Court with leave of the Court of Appeal or the Supreme Court.” I agree with my learned brother, Mohammed Lawal Garba, JSC, that the grounds of appeal before us seek to challenge the exercise of the lower Court’s discretion. They are grounds of fact or at best grounds of mixed law and fact. Failure to seek prior leave to argue the grounds, is fatal to this appeal.
See Nwagbara Vs Jadcom Ltd. (2021) LPELR – 55329 (SC) @ 10 C- E; Chrome Air Services Ltd &Ors Vs Fidelity Bank (2017) 12 SC (Pt.III) 57; Umanah vs N.D.I.C. (2016) 7 SC (Pt. V) 49.
For these and the more detailed reasons advanced in the lead judgment, with which I concur, I hold that this appeal is incompetent. It is hereby struck out. I abide by the award of costs made.
EJEMBI EKO, J.S.C.: This is an interlocutory appeal brought against the ruling of the lower Court refusing and dismissing the application brought on trinity prayers for extension of time within which the Appellant may appeal the decision of the lower Court. The incompetence of the appeal is most glaring. I agree with the lead judgment of my learned brother, Mohammed Lawal Garba, JSC, just delivered and do hereby endorse and adopt the said judgment striking out the appeal including order as to costs.
I will only now just highlight some other reasons in support of the order striking out the appeal for incompetence. This is an interlocutory appeal as I earlier point out. The notice of appeal against the decision appealed ought to have been filed within 14 days from the date of the decision appealed, that is 20th November, 2006. The notice of appeal was however filed on5th December, 2006 – 16 days from the date of the decision appealed.
The mandatory provision of Section 27(2)(a) of the Supreme Act, 2004 prescribing 14 days from the date of the decision appealed as the period within which to give notice of appeal against an interlocutory decision in a civil case has thus been contravened. The instant notice of appeal, filed out of time, is in consequence a nullity ab initio.
In addition, the notice of appeal was settled or signed by an unknown proxy of Egede Ferdinand, Esq., of the law firm of Femi Atoyebi& Co. (at page 31 of the Record). This fundamental defect, like the previous one highlighted above, goes to the root of this sham appeal. Let me sieze this occasion to comment on one practice that is now gaining ground among legal practitioners.
The Rules of Professional Conduct for Legal Practitioners, 2007, Rules 20(1) & (6) in particular, provide inter alia “a lawyer shall not accept to act in any contemplated or pending litigation if he knows or ought reasonably to know that he or a lawyer in his firm may be called or ought to be called as a witness” and that “if, during the trial, the lawyer discovers that the ends of justice require his testimony, he should from that point on, – leave further conduct of the trial to other counsel”, and that he “shall not argue the credibility of own testimony”. At the lower Court, Mr.
Egede Ferdinand was against these basic rules of ethics, concomitantly both the Applicant’s counsel and the deponent of the supporting affidavit. The rules of professional conduct prohibited Egede Ferdinand, Esq., from acting in both capacities contemporaneously. The application was thus bedeviled and vitiated ab initio by his unethical practice. Appeal struck out.
IBRAHIM MOHAMMED MUSA SAULAWA, J.S.C.: Having read before now, the submissions of the learned counsel contained in the respective briefs of argument vis-a-vis the records of appeal as a whole, I cannot but concur with the reasoning expressed in the judgment just delivered by my learned brother, the Hon. Justice M.L. Garba, JSC, to the conclusive effect that the undated Notice of Appeal filed on 05/12/2006, is incompetent, thus liable to be struck out.
Hence, having had the privilege of adopting the said reasoning and conclusion as mine, I toohereby unhesitatingly strike out the Notice of Appeal for being incompetent.
TIJJANI ABUBAKAR, J.S.C.: My Lord and brother Garba, JSC granted me a preview of the judgment just rendered in this appeal. I am in full agreement with the entire reasoning and conclusion and adopt the entire judgment as mine. I just wish to add that, this appeal is against the decision of the Court of Appeal Lagos Division delivered on the 20th day of November, 2009 refusing the Appellant/Applicant leave to appeal.
The basis of the decision of the lower Court is that the Appellant/applicant applied for leave to appeal three years after the decision.
The Applicant failed to furnish good and substantial reasons for the delay in bringing the application. The circumstances surrounding the resignation of Mr. Abasi Inyang has not been explained to the satisfaction of the lower Court.
Let me add, that the Appellant/Applicant must also show arguable grounds of appeal. In the instant case, the trial Court clearly relied on Section 12 of the NNPC Act to hold that Appellants suit ought to have been filed within twelve month of the occurrence of the event. The action wasbrought five years after, this is clearly a hopeless case because the Appellant/Applicant cannot perform magic to inject life into the suit, the suit is dead on arrival.
Appellant’s appeal is frivolous and vexatious and therefore deserves to be dismissed.
I endorse the decision of the lower Court dismissing the application for leave to appeal. Again the grounds of appeal are incompetent, they are of mixed law and facts, leave was not obtained. They are accordingly struck out. Appeal struck out. I endorse all consequential orders including the order on costs.