A.G. ANAMBRA V. ONUSELOGU ENT. LTD
Before Their Lordships
KAYODE ESO Justice of The Supreme Court of Nigeria
AUGUSTINE NNAMANI Justice of The Supreme Court of Nigeria
SAIDU KAWU Justice of The Supreme Court of Nigeria
CHUKWUDIFU AKUNNE OPUTA Justice of The Supreme Court of Nigeria
SALIHU MODIBBO ALFA BELGORE Justice of The Supreme Court of Nigeria
Between
Between
Before Their Lordships
KAYODE ESO Justice of The Supreme Court of Nigeria
AUGUSTINE NNAMANI Justice of The Supreme Court of Nigeria
SAIDU KAWU Justice of The Supreme Court of Nigeria
CHUKWUDIFU AKUNNE OPUTA Justice of The Supreme Court of Nigeria
SALIHU MODIBBO ALFA BELGORE Justice of The Supreme Court of Nigeria
Between
ATTORNEY-GENERAL OF ANAMBRA STATE (APPELLANT)
v.
C.N. ONUSELOGU ENTER LTD. (RESPONDENT)
…………………….A…………………….
Belgore, J.S.C. The respondent, C.N. Onuselogu Enterprises Ltd., was on 14th June 1977 awarded a contract for the construction of Akwa-Etiti-Isieke road by the Anambra State Government represented as defendant by the Appellant in this appeal. The value of the contract N6,738,585.00 and was to be completed in seventy eight weeks. Work started in earnest but by November 1979, the Anambra State Government was falling into arrears in the payment on interim certificates of works done. The respondent none the less remained on the site and carried on those works he could possibly execute. But by 27th November 1979 the agent of appellant had declined signing any further interim certificates claiming he had instruction to do so; thus the interim certificate No. 16 valued at N500,000.00 was not signed. There was an interim certificate No. 15 signed for the sum of N77,491.80 for which no payment was made. The term of the contract stipulated payment on interim certificate within twenty-eight days of its submission. The respondent thus was placed in a very uneasy situation whereby there was delay in compensating villages with houses and crops along the road which prevented the contractor moving quickly, interim certificates were not being honoured as stipulated in the contract and this led to cash flow problem for the contractor. As if the situation was not bad enough, the appellant on 17th December 1980 terminated the contract on an allegation that the respondent had abandoned the site. The respondent contractor had to sue for breach of contract and damages.
In the claim of the respondent as plaintiff in the High Court, he claimed a total of N3,590,000.73 as special damages. It should be remembered that various variations crept into the contract which is not unusual in contracts of this nature, but this was not the contentious issue at trial. The trial Court gave judgment for the plaintiff and awarded the following-
(i) Works executed but uncertified on certificate 16 N500,000.00
(ii) Materials on site N278,864.00
(iii) Fluctuations on materials and labour N375,354.00
(iv) Loss of profit on work not done N375,354.00
(v) Idle time before termination N99,321.00
(vi) Interest and Bank charges at 5% for 27 months N351,960.00
TOTAL- N2,326,395.86
The appellant appealed to Court of Appeal where the appeal was dismissed in part with variation in the quantum of damages as follows-
(i) Materials on site N278,864.00
(ii) Equipment on site N772,136.00
(iii) Fluctuations on materials and labour N375,354.00
(iv) Loss due to idle time N99,321.00
…………………….B…………………….
Thus the Court of Appeal allowed the appeal in respect of the N500,000.00 claimed on work done but uncertified for payment, and loss of profit, bank charges, value of work executed in respect of interim certificates 1-15 for N5,444.00, N720,096.86, N351,960.00 and N207,544.01 respectively.
The two parties have now appealed to this Court. The Main appeal by Attorney-General of Anambra State with many grounds all allegedly on grounds of error in law though ground 1 is no more than the general ground based entirely on facts, as to assessment of evidence. The respondent, Onuselogu Enterprises Ltd. cross appealed. And the sting of the grounds of appeal is on affirmation by the Court of Appeal of the award of N500,000.00 earlier made by the trial Court on interim certificate 16 not certified by the appellant’s agent. But it is pertinent to set out the grounds of appeal very relevant to the issue fought in this Court. Before then I have to mention that contrary to expectations the parties sorted themselves out in this Court by agreeing on some claims leaving only the sum of N500,000.00 in issue with the question juxtaposition of payment of mobilisation fee and the retention fee. The main appellant (that is the Ministry) in the grounds of appeal inter alia contends as follow-
GROUND 1
Error in Law
The learned Justices of the Court of Appeal erred in law in awarding to the respondent the sum of N1,965,041.96 as special damages when the respondent did not discharge the burden of proof imposed on him by law in respect of those claims.
PARTICULARS
1. Claim for special damages must be strictly proved according to law.
2. Exhibits ‘B’ & ‘G’ tendered by PW 1 did not suffice to proof the averment contained in those exhibits since no weight should be attached thereto in that PW 1 did not see or have personal knowledge of what he deposed in those exhibits.
3. Exhibit ‘G’ being the claim for N500,000 being work done and not certified for payment is not binding on the appellant since it was prepared otherwise than in accordance with the course of conduct binding the parties.
4. Apart from the evidence of PW 1 there is no other independent evidence from the respondent to prove the damages claimed by the respondents.
5. The claim for loss of profit-N720,096.86 was not related either to the total sum of the contract or to the value of work not executed before the termination of the contract. Nor does it relate to the value of work already completed.
6. The claim for interest on bank charges is meant to be 5% of overdue payments and not 5% of the total contract value or of the total value of work executed or unexecuted under the contract.
…………………….C…………………….
7. The award of N351,961.85 as 5% of the overdue payment do not relate to any amount outstanding as overdue payment under the contract.
8. The value of the work executed in regard to certificates 1-15 is N2,025,542.01 and not N207,554.01 and this had been paid to the respondent except certificate 15 which is still outstanding unpaid.
9. The award of N207,554.01 is not based on any claim before the High Court of the Court of Appeal.
10. The respondent was owing the appellant the sum of N495,000.00 as unrefunded mobilisation fee. The respondent was overpaid to the tune of N167,015.75. The Justice of the Court of Appeal instead of assessing the debt owed by the respondent awarded special damages for breach of contract as claimed by the plaintiff.
GROUND 2
Error in Law
The Justices of the Court of Appeal erred in Law in failing to juxtapose Exhibit ‘G’ and Exhibit ‘Y’ in order to determine the preponderance of evidence before it so as to determine if the respondent has proved his claim under that head.
PARTICULARS
1. Exhibit ‘G’ is the calculations made by PW 1 in respect of the claim for N500,000.00 as work done and not certified as per Certificate 16.
2. Exhibit ‘Y’ is the calculations of the appellant in respect of the same claim.
3. No weight should be attached to Exhibit ‘G’ as the maker did not see or have personal knowledge of what he prepared or deposed.
4. Exhibit ‘Y’ is prepared in the usual manner with the knowledge of the respondent.
GROUND 3
Error in Law
The learned Justices of the Court of Appeal erred in law in awarding damages for work executed but not certified amounting to N500,000.00 when the respondent did not discharge the burden of proof imposed on him by the law.
…………………….D…………………….
PARTICULARS
(1) Award of the damages was based on the calculations and evidence of PW 1 when no weight should be attached to the evidence of PW 1.
(2) The unilateral measurement carried out by PW 1 did not comply with the course of conduct between the parties which require a joint measurement of any work executed.
(3) The appellant carried out a joint measurement as evidence by Exhibit ‘Y’ which he submitted to the respondent for comments and this approximates more to the course of conduct between the parties.
GROUND 4
Error in Law
The learned Justices of the Court of Appeal erred in law in awarding damages for N207,544.01 being value of work executed in regard to certificates 1-15 when such a claim was not before either the trial court or the Court of Appeal.
PARTICULARS
(1) Both the appellant and respondent admitted that the value of work executed with regard to certificates 1-15 is N2,025,542.01 and that payment has been made for certificates 1-14 leaving certificate 15 unsettled before the termination of the contract.
(2) The award should therefore be N77,491.80 being the amount outstanding on certificate 15.
(3) There is no where the figure of N207,554.01 was claimed by the plaintiff or admitted by the defendant either in the pleadings or in the evidence before the Court.
GROUND 5
Error in Law
The learned Justices of the Court of Appeal erred in law in awarding N351,244.62 being interest on bank charges on overdue payments when the 5% awarded under that head is meant to be 5% on overdue payments and not 5% of the total contract value or of the total value of work executed under the contract.
…………………….E…………………….
PARTICULARS
(1) Under the conditions of contract, the Form of Tender and appendix thereto which together form the contract document, Exhibit ‘B’ 5% is payable by the appellant on interest on bank charges on overdue payments i.e. payments made 28 days after the certificate of completion has been signed.
(2) The only outstanding payment of completed job is certificate No. 15 amounting to N77,491.80.
(3) The respondent has not proved that any other certificate was outstanding for more than 28 days.
(4) The 5% interest should have been calculated N77,491.80 or any other amount shown to be outstanding unpaid for more than 28 days.
GROUND 6
Error in Law
The learned Justices of the Court of Appeal erred in law in awarding a total damages of N1,965,041.96 when the total amount actually awarded by the court under items A, B, C, G, and J amounted to N1,785,055.87.
PARTICULARS
1. The learned Justices of Appeal awarded the following items of damages-item A: Value of work executed in regard to certificates 1-15-N207,544.01
item B: N500,000.00 being value of work done but not certified as per certificate 16.
item C: Variation N5,444.00
item G: Loss of Profit-N720,096.86
item J: Interest on Bank Charges on overdue payments N351,961.00 total N1,758,055.87.
2. The learned Justices of the Court of Appeal awarded N207,544.01 as item A of the claim but applied the sum of N1,025,542.01 in calculating the total amount due to the respondent which produced an entirely different award to the respondent.
3. The sum of N2,025,542.01 is not in dispute being an amount agreed to by both parties as representing work completed and covered by certificates 1-15 of which certificates 1-14 have been settled.
4. The only unsettled amount is certificate 15 which is N77,491.80 and that should have represented the award under this item.
5. The amount of N1,648.021.96 applied by the Court of Appeal as previous payments was not proved by the plaintiff since the admission of the respondents that Certificates 1-14 have been settled belied that claim.
…………………….F…………………….
GROUND 7
Error in Law
The damages awarded by the learned Justices of the Court of appeal is excessive and contrary to the legal principles established and enunciated in that behalf.
PARTICULARS
(1) Damages are awarded only in accordance with the heads permitted or under the law and must accord within the terms contemplated by the parties.
(2) Damages awarded by the Court of Appeal were not in contemplation of the parties and outside the heads permitted by law.
GROUND 8
Error in Law
The learned Justices of the Court of Appeal erred in law in that instead of assessing the debt owed by the respondent the Justices of the Court of Appeal simply awarded special damages of breach of contract as claimed by the respondent.
PARTICULARS
(1) The respondent was owing the appellant N495,000.00 as unrefunded mobilization fee and N167,015.75 as over-payment made to him by the appellant.
(2) These facts were well pleaded in the statement of defence.
(3) The Court of Appeal should have taken his debt into consideration in awarding the damages claimed by the respondent.
(4) RELIEF SOUGHT FROM THE SUPREME COURT OF NIGERIA
To set side the damages awarded to the respondent by the Court of Appeal.
(5) PERSONS DIRECTLY AFFECTED BY THE APPEAL
1. N. Onuselogu Enterprises Ltd.,
16 Nnaji Street,
Uwani,
Enugu.
…………………….G…………………….
2. Attorney-General of Anambra State,
Ministry of Justice,
Enugu.
Dated at Enugu this 4th day of March, 1986.”
(M.T.N. ONWUGBUFOR)
Appellant’s Solicitor,
Ministry of Local Government,
Rural Development
and Chieftaincy Matters, Enugu.
APPELLANT’S ADDRESS FOR SERVICE
Ministry of Justice,
Enugu.”
In the brief of argument by the appellant there is an attempt to make an issue out of Exhibit B, a report by a witness, Dr Agbaraoji who is a qualified quantity surveyor concerning work done but not certified on what would have been interim certificate No. 16 not signed by the client Ministry. The contention was that this witness never visited the site of the work giving rise to this litigation and that his report was no more than hearsay. This argument could not be developed in this Court as learned Counsel for appellant realised in good time that a quantity surveyor deals mainly on documents and figures therein which he collates to arrive at his figures (quantity). The appellant concedes that the finding of the trial Court upheld by the Court of Appeal that the contract was improperly determined was right. What is being contested is the quantum of damages. The issues formulated for determination are
“(1) Whether the Court of Appeal was right in awarding some items of damages claimed by the plaintiff/respondent when the plaintiff did not discharge the burden of proof imposed on him by the law in respect of those damages and when the items were not claimed in accordance with the conditions of the contract binding on both parties.
(2) Having rejected some items of damages, whether the court of Appeal was right in awarding other items when the proof in respect of all the items is based on the same evidence that is to say the evidence of Prince Agbaraoji and Exhibit ‘B’.
(3) Whether the plaintiff/respondent can now challenge the judgment of the Court of Appeal in respect of insufficiency of particulars and the state of pleadings when the Counsel to the plaintiff/respondent has conceded in the Court of Appeal that the State of Pleading in this case did not adequately plead the particulars of special damages and has in fact urged the Court of Appeal to enter a non-suit.”
It must be pointed out that the Court of Appeal upheld the appeal in respect of
(a) Materials on site N27,864.00
(b) Equipment on site N772,136.00
(c) Fluctuation on material and labour N375,354.00
(d) Loss due to idle labour N99,321.00
and dismissed the appeal in respect of
(a) Work done but uncertified on certificate 16 N500,000.00
(b) Variations N5,444.00
(c) Loss of profit N720,096.86
(d) Interest on bank charges N351,961.00
(e) Value of work executed in respect of certificates 1-15 N207,554.00
TOTAL N1,785,055.87
…………………….H…………………….
There is no appeal against the award of loss of profit in (c) above and variations in (b) above. The parties in Court seem to trade horses in that both agreed on the following as due and not contested
Loss of profit N720,096.86
Variations N5,444.00
Interests on overdue payment N351,244.62
Loss due to idle time N77,491.00
but the contentious issues concern the award of N500,000.00 for work done but not certified, and value of work executed in respect of certified certificate 15 which is N207,554.01.
The contention of the appellant Ministry of Works is that special damages must be strictly proved after being specifically pleaded. It was submitted that there was not enough pleading to satisfy the general requirement that special damages must be specifically claimed and that there was even no proper proof. The statement of claim in respect of this N500,000.00, is clear in paragraph 23 as follows
“Wherefore the Plaintiffs who will rely on relevant documents, vouchers, bills etc. at the trial claim from the defendant the following:
N3,590,000.00 being special and general damages for breach of contract.
Particulars of Special Damages
(a)
(b) value of work executed but not certified for Certificate No. 16 (see Ministry of Works letter Ref. No. ONSITE/AEW.1.346 dated 9th December, 1980) N500,000.00
It is difficult to understand what counsel for appellant further requires for proof of special damages. There is specific pleading as to special damages and there is ample evidence of Dr Agbaraoji as to collation of documents available and pleaded whereby he arrived at the figure of N500,000.00. The law that special damages must be strictly proved applies to cases of tort in which a party claiming damages for injuries must specifically plead the injuries and damages suffered therefrom and proceed by evidence to prove them. Where there is evidence to support a pleading of special damages suffered in a matter of contract and the evidence is convincing, that is to say without contradiction, and the trial Court accepts that evidence, the appellate Court will not interfere with any award on that claim. Special damage, unlike general damage, is the one the law does not presume, it must be specially pleaded because it arises by special circumstances of the case. Oshinjirin v. Elias 1970 1 ALL N.L.R. 153, 154. The statement of claim is very clear as to what was being claimed as work done but not certified. The appellant has made a big issue of the discrepancy in Exhibit G and Exhibit Y which are in connection with Exhibits A and B. What learned Counsel for the appellant never adverted to in his brief and submission in Court is that the documents are pleaded. Just before PW 1, Dr Agbaraoji, gave evidence in Chief, the statement of claim was amended without objection in paragraph 23 by the insertion, after the words “relevant documents” of the words “including a report by J.C. Agbaraoji and Partners, Charted Quantity Surveyors, dated January 1982 in respect of the said contract.” To submit that there was no sufficient particularisation of the special damage in this case cannot but be an error of appreciation. What is strict proof depends on circumstance of each case. At any rate what is the purpose of pleadings? Pleadings are statements of fact that a party relies upon to prove his claim and it is always meant to give sufficient notice to the other party of the case he is being called upon to face. Every pleading must contain a statement of all material facts on which a party bases his claim or defence; it contains only fact and not the evidence by which those facts are to be proved. Each fact in logical sequence will be in numbered paragraph, stating clearly without ambiguity what the allegation is that must be met by the other side. All facts which are material to a party’s case are relevant and must be stated-Esso West Africa Incorporated v. L Oladiti 1968 N.M.L.R. 453; Babatunde Adisa Thanni v. Yaya Lemomu (1977) 2 S.C. 89, 117.
…………………….I…………………….
The purpose of pleading is to put the other side on the alert as to what he is going to meet. A party dragged to court, as it is commonly said in this country, must know what he is being accused of; he must know what the allegations against him are. Therefore it is the requirement of practice every fact necessary for a party’s case must be positively, distinctly briefly and unambiguously stated so that full information the adversary needs to know about the case he is meeting will be known Esin v. Matzen and Timm (Nigeria) Ltd. (196) 1 ALL N.L.R. 233, 235-236. Where the rules require specific pleading of certain facts there is no derogation from the basic rule that pleadings should contain only statement of fact and not evidence by which those facts are to be proved. Fraud, statutory exception, defence of laches, res ipsa loquitur are special matters that must be specifically pleaded to be relied upon. But they are not law but only facts leading to law and to be supported by evidence at the trial. Similarly, as in this case, where special damage is claimed it must be specifically pleaded and particularized and evidence must be led to convince the Court as to the authenticity of the claim. The pleading of the documents may be inelegant but there is certainty as to the claim and the appellant was certainly in no doubt as to what he was going to meet.
In the instant appeal the appellant contends that Exhibit G, being the document pleaded the and tendered by respondent through the maker Dr Agbaroji, should not have been preferred to their own Exhibit Y, both in respect of Interim Certificate No. 16. The appellant contends that the trial Court and Court of Appeal ought to have juxtaposed the two documents and the rejection of Exhibit Y was unfair and contrary to practice.
In all claims for special damages where there are conflicting documents as to the amount actually due the Court of trial must take all care to ascertain which one is to be relied upon, or whether facts must be extracted from each so as to do justice in the case. As I have held earlier, Exhibit G was pleaded and was legally admissible as it was admitted in evidence. It contains the due sum of N500,000.00 as the value. Certainly this is not a traverse of paragraph 23 of the statement of claim. This paragraph 25 of statement of defence is not only meaningless but virtually renders the averment in statement of claim untraversed; in that case the claim would ordinarily have stood unchallenged and uncontradicted. It would in some cases in of work done on the road construction. Whereas Exhibit Y mentions the sum of N36,513.58 only as due on Interim Certificate No. 16. The letter terminating the contract was written on 17th September 1980. It could be observed that the Interim Certificate of the appellant which is Exhibit Y was made in March 1980, about six months before the termination of the contract. Exhibit G, the respondent’s version of Interim Certificate 16 was made after the termination of the contract and it dated 8th December 1981. While the true position in matter of conflicting figures in two separate documents on the same subject matter is as stated in Airoe Contractors and Civil Engineering Co. Ltd. v. University of Benin (1985) 3 S.C. 1, 23, the juxtaposition envisaged must comply with certain requirements. The documents must not only relate to the same subject matter, but must also relate to the same period. Exhibits G and Y both mention Interim Certificate No. 16 but that is end of their relationship. The former covers a period far beyond March 1980 whilst the latter ends in March 1980. This are certainly not relating to the same period even though they relate to the same contract of construction of Awka Etiti-Isieke road. Once a party has proved his case on a point he has properly pleaded and the defence has not assailed successfully that case, he is entitled to judgment on it. I have no reason to interfere with the award of N500,000.00 made in respect of the work actually done but not certified by the appellant’s agent. There is clear evidence that the appellant all along refused to certify certificates after certificate No. 15, and his evidence remains uncontradicted.
…………………….J…………………….
The parties seem to agree that payment had already been made on Certificates 1-14 and only Certificate No. 15 has outstanding payment of N77,491.80 which I hereby uphold.
In the cross appeal the plaintiff/appellant contends that the Court of Appeal was in error to have set side the trial Court’s award for material and equipment on site. The particulars of special damage clearly set out the following inter alia:
“… all relevant documents, vouchers, bills etc. including a report by P.C.A. Agbaraoji and Partners, Quantity Surveyors, dated January 1982 in respect of the said contract”
and gave the following particulars
“(d) materials on the site N27,864.00
(e) equipment on site N772,136.00
The duty of the defendant who is faced with a specific plea by a plaintiff in a statement of claim is to specifically deny those matters he is disputing; failure so to an admission. The defendant/respondent in paragraph 25 of statement of defence in reply to the specific plea in paragraph 23 of statement of claim avers only
“25. The defendant will at the trial contend that the plaintiff’s claims as contained in paragraph 23 of the statement of claim are misconceived and should be dismissed with substantial costs.”
Certainly this is not a traverse of paragraph 23 of the statement of claim. This paragraph 25 of statement of defence is not only meaningless but virtually renders the averment in statement of claim untraversed; in that case the claim would ordinarily have stood unchallenged and uncontradicted. It would in some cases in Nigeria be sufficient to deny by simply traverse that defendant does not admit an allegation. It is a different matter when looking at the words employed by the defendant, no meaning could be deduced in relation to an averment. In that case specific allegation is deliberately left untraversed; and it is not the duty of the Court to infer denial the fact untraversed remains unchallenged. Ajibade v. Mayowa & Anor. (1978) 9 and 10 S.C.1. 6; Eko Odume v. Ume Nnachi & Ors. (1964) 1 All N.W.L.R. 329. The defendant who wishes to deny an allegation must do so clearly and unambiguously so that the Court and his adversary will with certainty know he is not admitting. Therefore traverse must be specific not general it must clearly allude to the fact pleaded and not evasive and ambiguous. Atta & Ors. v. C. Nnacho & Ors. (1965) N.M.L.R. 28. The Court of Appeal never adverted to the shortcoming in the statement of defence and made out of the statement of claim an issue not deserving of credit of the defendant. At the trial no issue was made out of paragraph 23 of statement of claim and it should not be the business of Court of Appeal to open a new vista in the dispute between the parties. The appellate Court of Appeal must take special cares to see that it deals with issues raised and contested in the trial Court; otherwise it will be in a pitfall of making a case the parties never anticipated and never contested. Decision based on such novel issues are only obiter but may misled Court that have no opportunity of seeing the actual history of the case from trial Court to the highest appellate Court. Overseas Construction Ltd. v. Creek Enterprises Ltd. & Ors. (1985) 3 N.W.L.R. Pt. 13, 407, 408; Chief Ebba v. Chief Ogodo & Anor. (1984) 4 S.C. 84; Ejowhomu v. Edok-Eter mandilas Ltd. (1986) 5 N.W.L.R. Pt. 39, 1, 3.
…………………….K…………………….
However, if a specific allegation or averment is made concerning special damage, it is the duty of the plaintiff to give specific particulars of those allegations so that the other side will know what to meet in the case. It is the duty of the plaintiff to prove his case and should not rely on the weakness and shortcomings of the defence. The Court of Appeal might have opened a new vista in the case for the defence which the defence did not deserve; but the principal question is whether the plaintiff who is the cross appellant now discharged the burden of proof required by law. The burden of proof on the appellant to my mind he never discharged. There were no particulars of the materials alleged to be o site. Were the materials laterite heaps, iron rods, bitument, asphalts or culvert rings? What quantities of these materials were not indicated in the particulars of claim for special damage. However liberal Nigerian trial Court may be in tolerance of deficient pleadings, extreme caution should by taken in making sure special damages claimed are well particularized. It is for this reason I find that though the defendant made a mess of his pleadings by virtually saving nothing in traverse of the statement of claim, the failure of the cross appellant to particularize the special damage should not be a licence for the Court to make a case where there was none.
The cross appeal therefore fails and award of:
i. Materials at site N27,864,00
ii. Equipment on the site N772,136.00
iii. Fluctuations on materials and labour N375,354.00
iv. Loss/expenses for idle time N99,321.00
TOTAL N2,274,675.00
made thereunder therefore fails.
There is the question of mobilization fee paid to the appellant/contractor and the retention fee held by the respondent. The credit balance is in favour of the defendant/respondent to the tune of N528,233.455 which will be deducted from his total amount now awarded the appellant.
SUMMARY OF AWARDS ON THIS APPEAL
A. Sums agreed between the parties:
(i) Loss of profit at 20% N720,096.00
(ii) Variations N5,444.00
(iii) 50% interest on overdue payment N351,244.62
(iv) Value of work on Interim Certificate No.15 N77,491.00
Add to this money on Interim
Certificate No. 16 not certified N500,000.00
TOTAL- 1,654,275,62
…………………….L…………………….
From this will be deducted outstanding mobilization money in juxtaposition with the retention fee:
Balance of mobilization fee due from
B. (i) plaintiff/cross appellant N460,787.75
(ii) Retention fee held by appellant/defendant N202,554,20
N258,233.55
C. Total due to plaintiff/respondent N1,654,275.62
Cross Appellant N258,233.55
N1,396,042.07
Less the sum erroneously awarded by
Court of Appeal on Certificates 1-15 N207,554.01
N1,188,488.06
Each part to bear its own costs.
Eso, J.S.C. I have had the privilege of a preview of the judgment just delivered by my learned brother Belgore J.S.C. I am in full agreement. I abide by all the orders made by my learned brother Belgore J.S.C.
Nnamani, J.S.C. I have a preview of the judgment just delivered by my learned brother, Belgore, J.S.C. and I agree with his reasoning and conclusions.
The issues involved in these appeal and cross-appeal were considerably narrowed by the commendable agreement between both learned Counsel, C. Akpangbo, S.A.N., and T. Onwugbufor-on some of the money being claimed. It was not in contention that work done under Certificates 1-15 amounted to N2,025,542.01 and that while payment had been fully made on Certificates 1-14, payment on Certificate 15 amounting to N77,491.80 was yet to be made, In other words, the Respondent Contractor had been paid N1,984,050.20 on Certificates 1-14. Mr Onwugbufor conceded the following payment as due to Respondent Contractor-
(i) Variations N5,444.00
(ii) Loss of Profit N720,096.86
(iii) Interest on bank charges N351,961.00
…………………….M…………………….
Mr Akpamgbo on his part conceded the sum of N207,554,01, which was item (e) in the damages by the Court of Appeal, as being payable by the Respondent Contractor to the appellant.
All that remained in contention therefore on the appeal were-
(a) N500,000 awarded to the respondent contractor as work done and not certified for certificate 16.
(b) The N258,233.55 which appellant claimed was due to it after a juxtaposition of the payments due to the Respondent Contractor and the balance due on the Mobilisation paid to it.
On the Cross-Appeal, four items which were rejected by the Court of Appeal were in issue-
(i) Materials on site N25,864.00
(ii) Equipment on site N772,136.00
(iii) Fluctuations on materials and labour N99,321.00
(iv) Loss due to idle time N99,321.00
On the N500,000 claimed as work done not certified, Mr Onwugbufor’s main attack was on the evidence of P.W.1, Dr Agbaraoji, Quantity Surveyor, more particularly on Exhibits B and G which he tendered. First, it was submitted that the documents were not pleaded and second, that even if they were pleaded, Exhibit G did not have so much weight as to support the N500,000 awarded the respondent Contractor under this head. It was further contended that there was Exhibit Y, prepared by an official of the appellant Government with set the amount due on this head of claim at N29,000 but that the learned trial Chief Judge did not even advert to it. The short answer to the first complaint is that the documents were properly pleaded. Learned counsel’s attention was drawn to page 69 of the record where Chief Umeadi, S.A.N. then learned Counsel to the respondent, had amended paragraph 23 of the Statement of Claim by the insertion of the words, “Relevant documents including a Report by P.C. Agbaraoji and Partners… said contract”
As regards the weight to be attached to Exhibit G (the quantities and calculations tendered by Dr Agbaraoji), it is enough to state Dr Agbaraoji gave evidence and both the trial Court and the Court of Appeal accepted his testimony. It was obvious that the appellant had an uphill task in convincing this Court to now reverse that finding. As for Exhibit Y, there were sufficient reasons on records why the learned trial Judge ignored it. The testimony of Mr Osakwe who tendered Exhibit Y is significant. At page 111 and under cross-examination he said-
“What I used was from my records. I prepared Exhibit Y for my own records and not for submission to the Ministry of Works. I did not submit Exhibit Y to anybody. I showed the defence lawyers Exhibit Y before I went into the witness box. When I showed the lawyers Exhibit Y they took it from me”
Besides, Mr Osakwe sat in Court throughout the hearing of the case.
…………………….N…………………….
The claim of the appellant for juxtaposition was in my view of firmer ground. Although at page 89 of the records Chief Onuselogu who gave evidence was P.W.2 admitted that he retired only N505,000.00 of the N1,010,787.75 mobilisation given him, learned Senior Advocate Mr Akpamgbo still argued that his client was still contesting his indebtedness. It does not seem to me that there is much room for contention in this head of claim. After accounting for the N202,544.20 retention fee owed the respondent, it seems to me the appellants claim for N258.55 is well founded.
Arguing the Cross-Appeal, Mr Akpamgbo submitted that item (i), i.e. materials on site was rejected by the Court of Appeal because in its view Exhibit B, the report Dr Agbaraoji was not annexed to the Statement of Claim. In their pleadings, paragraph 23, the cross-appellant set out four heads of clam under Particulars of Special Damages. The were items (d), (e) (f) and (h) therein. It seems to me that it is now trite law that a party is expected to plead all the facts and/or materials he intends to rely on in proving his case but certainly not the evidence by which he intends to effect proof. To that extent to insist on having Exhibit B annexed was a misdirection. But special damages have to be pleaded and strictly proved. All that the cross-appellant pleaded were the bare assertions contained in (d), (e), (f) and (h) above. Although an amendment of paragraph 23 of the amended Statement of Claim brought in documents prepared by Dr Agbaraoji, I am of the same view that the mere assertions of the claims was insufficient. The pleadings ought to have included more particulars of the materials and equipment on site. The failure of the respondent to the cross-appeal to ask for better and further particulars cannot discharge the cross-appellant form its primary responsibility of pleading full particulars of the special damages it is claiming of course it is that evidence in relation to any matter not pleaded goes to no issue. In any case the position of the cross-appellant had been compromised when its counsel in the Court of Appeal conceded the issue of insufficiency of pleadings and requested for a Non-Suit. At page 230 of the record, learned Counsel representing the cross-appellant said-
“In view of the state of the pleadings in this case which did not adequately plead the particulars of special damages, we urge this Court to enter a non-suit since the appellant does not deny liability”
This court has repeatedly said that it will not welcome the occasional practice of parties making a different case in each Court in the hierarchy of Court. See Abaye v. Ofili (1981) 1 N.W.L.R. pt. 15 134, 145. It was for these reasons, and the more detailed reasons contained in the lead judgment, that I allowed the appeal only in part and dismissed the cross-appeal.
For the avoidance of doubt, in relation to the issues contested before this Court, the appellant has failed has failed in its challenge to the N500,000 awarded to the respondent company but succeeded in being awarded N258,33.55 as mentioned in this judgment. Both parties are of course entitled to the sums of money conceded by each side also mentioned earlier in this judgment.
I abide by all the order made by learned brother, Belgore, J.S.C.
Kawu, J.S.C. I had a preview of the judgment just delivered by my learned brother, Belgore, J.S.C. and I agree with him that the appeal ought to be allowed and the cross appeal dismissed. I will, for the reasons states in the said lead judgment allow this appeal and dismiss the cross-appeal. I abide by the orders contained in the judgment including the order as to costs.
Oputa, J.S.C. I have had the privilege of a preview in draft of the lead judgment just delivered by my learned brother Belgore, J.S.C. and I am in entire agreement with the award made in the legal judgment. The issue in this appeal is more arithmetical than legal. It merely involves additions and subtractions which had been very well done in the lead judgment.
AJAYI V. TEXACO NIGERIA LTD
On Saturday, the 12th day of September, 1987
Suit No: SC.230/1985Before Their Lordships
MOHAMMED BELLO Justice of The Supreme Court of Nigeria
ANDREWS OTUTU OBASEKI Justice of The Supreme Court of Nigeria
ANTHONY NNAEMEZIE ANIAGOLU Justice of The Supreme Court of Nigeria
BOOYAMIN OLADIRAN KAZEEMJustice of The Supreme Court of Nigeria
CHUKWUDIFU AKUNNE OPUTA Justice of The Supreme Court of Nigeria
Between
Between
Before Their Lordships
MOHAMMED BELLO Justice of The Supreme Court of Nigeria
ANDREWS OTUTU OBASEKI Justice of The Supreme Court of Nigeria
ANTHONY NNAEMEZIE ANIAGOLU Justice of The Supreme Court of Nigeria
BOOYAMIN OLADIRAN KAZEEMJustice of The Supreme Court of Nigeria
CHUKWUDIFU AKUNNE OPUTA Justice of The Supreme Court of Nigeria
Between
BABATUNDE AJAYI Appelants
And
TEXACO NIGERIA LIMITED & ORS Respondents
…………………….A…………………….
Obaseki, JSC. On the 30th day of June, 1987, after hearing the submissions of counsel for the appellant and counsel for the respondents and reading the written briefs of arguments filed by the parties together with the record of proceedings, judgments of the Court of Appeal and the High Court, i.e. the two courts below, I, in concurrence with my learned brothers dismissed this appeal and reserved my reasons for the judgment till today. I now proceed to give them.
The claim filed by the appellant as plaintiff against the respondents as defendants in the High Court of Lagos State Holden at Lagos as set out in paragraph 29 of the statement of claim reads:
“the plaintiff claims against the 1st defendant company:
1. A declaration that:
(a) The plaintiff is the Operations Manager of the 1st defendant company under a contract of employment;
(b) Any breach of the said contract of employment between the plaintiff and the 1st defendant company is illegal, invalid, ultra vires, null and void and of no effect;
2. An injunction restraining the 1st defendant company by itself, its servants and/or agents or otherwise from committing a breach of the said contract of employment existing between the plaintiff and the 1st defendant company or in any way interfering with the plaintiff in the performance of his duties as Operations Manager; ALTERNATIVELY, the plaintiff claims against the 1st defendant company N634,833.00 special and general damages for anticipatory breach of contract.
Particulars
(i )Salary and other emoluments and benefits for 9 1/2 N612,009.00
years at N64,422.00 per annum
(ii) Pension 20,000.00
(iii) Accrued Leave 1,824.00
(iv) Leave Bonus 1,000.00
Total N634,833.00
…………………….B…………………….
The plaintiff also claims an injunction against the 2nd and 3rd defendants jointly and severally from wrongfully unlawfully inducing a breach of the plaintiff’s contract of employment on the part of the 1st defendant company or ALTERNATIVELY, the sum of N634,833.00 damages.”
First defendant company counter-claimed against the plaintiff in paragraph 14 of the statement of defence and counter-claim as follows:
“The dwelling house at Plot 866A Victoria Island, Lagos was allocated to the plaintiff for his occupation and use. He was also allowed the use of Toyota Crown Saloon car Registration No. LAA 2746. Both the said dwelling house and car belong to the 1st defendant and are still in the possession of the plaintiff.
Wherefor, the 1st defendant counter claims as follows:
(a) for an order that the plaintiff do give up possession of the said premises at and being plot 866A Victoria Island, Lagos, to the 1st defendant;
(b) For an order that the plaintiff do surrender Toyota Crown Saloon car Registration No. LAA 2756 to the 1st defendant.”
Pleadings were filed and served and the issues joined came up for trial before Bada, J.
After hearing evidence of witnesses called by the parties, addresses of counsel for the parties, the learned trial Judge delivered a considered judgment.
(a) dismissing the plaintiff’s claim for declaration for an order of injunction; and
(b) granting the alternative claim for damages assessed at N34,212.50
In his judgment, the learned trial Judge observed and found as follows:
“Although there is no evidence before me that the powers as to the management of a business of a company as set out in Article 82 had been entrusted to and conferred upon the 2nd defendant, it is my view that since the plaintiff admitted that the 2nd defendant had power to take disciplinary action against him such power would include power to terminate
…………………….C…………………….
Defence learned Counsel’s submission in the main, was on Exhibit D1 which he submitted the 1st defendant complied with as to notice of termination, that is, one month’s notice or a month’s salary in lieu and that in this case, the plaintiff was paid 3 months’ salary in lieu of notice together with all his entitlement. While I am in agreement with the submission of learned defence counsel on this point, I am of the view that his submission would have succeeded in a case where an employer terminates the services of the employee under the contract between the parties without adducing any reason for it but under the contract simpliciter. Exhibit D1 does not provide for any disciplinary measure against an employee. Clause 3 paragraph 2 of Exhibit D1 on which the defence is relying provides for period of termination of confirmed officer without more. The threatened termination of the plaintiff was based solely on the contract between the parties but because of the reasons contained in Exhibit p4 on which the plaintiff testified were prompted by malice of the 2nd and 3rd defendants against him, then question arises: Was it not incumbent on the defendants…to rebut this evidence in view of their denial of that paragraph of their statement of defence?
In the present case, there is no evidence before me to controvert the evidence of the plaintiff that the exercise of the 2nd and 3rd defendants in connection with this matter was malicious and I cannot, but hold that the threatened termination of the plaintiff was unlawful.. In the circumstances, I cannot make the declarations prayed for.”
(Italics mine)
By this finding, it should be observed that it was the threatened termination that was unlawful. There was no finding that the employment was terminated or that the termination was wrongful. What is “anticipatory breach” of a contract? It is a breach of contract caused by the repudiation of obligations not yet ripe for performance. As Lord Blackburn puts it in Mersey Steel and Iron Co. v. Naylor Benzon & Co. (1884) 9 App Cas 434:
“Where there is a contract to be performed in the future, if one of the parties has said to the other in effect.
‘If you go on and perform your side of the contract, I will not perform mine’
…………………….D…………………….
that in effect amounts to saying ‘I will not perform the contract.’ In that case, the other party may say ‘you have given me distinct notice that you will not perform the contract, I will not wait until you broken it, but I will treat you as having put an end to the contract and if necessary I will sue you in damages, but at all events, I will not go on with the contract’.
It does not appear that this case falls within the category of cases of anticipatory breach of contract.
Where in a contract of employment provisions are made for the termination of the contract and the provisions are followed or complied with to terminate the contract, the question of anticipatory breach does not arise. The exercise of a right of termination of a contract in accordance with the contract does not amount to a breach of the contract. A threat to terminate an employee’s employment remains only a threat and does not without more amount to a wrongful dismissal or a breach of contract of employment.
The defendants/respondents were not satisfied with the judgment of Bada, J. particularly the portion in which the High Court found:
“(a) That the threatened termination for the plaintiffs’ employment under the 1st defendant was wrongful;
(b) That the defendants were liable in damages to the plaintiff for threatened termination of employment or anticipatory breach.”
The defendants/respondents therefore took the matter on appeal to the Court of Appeal and the grounds of appeal filed and argued were:
(1) That the learned trial Judge erred in law in holding in an action for breach of contract, that the termination of the plaintiff’s appointment under the 1st defendant was wrongful when no satisfactory proof of contract of employment relied on by the plaintiff was adduced in evidence;
(2) That the learned trial Judge erred in law in holding in an action for breach of contract, that the termination of the plaintiff’s appointment under the first defendant was wrongful because the 2nd and 3rd defendants acted from selfish irrelevant and improper motives when there was no evidence before him that in considering the actions of the 1st defendant and its agents under the plaintiff’s contract of employment, motive was relevant;
…………………….E…………………….
(3) That the learned trial Judge erred in law in holding that the termination of the plaintiff’s appointment under the 1st defendant was wrongful because the 2nd and 3rd defendants acted from improper motives when there was no proof whatsoever before him that the said defendants in fact so acted.
(4) That the judgment is unreasonable, unwarranted and cannot be supported having regard to the evidence;
(5) That the damages awarded to the plaintiff are excessive in that the award ran counter to:
(a) the law relating to the award of damages in cases of wrongful dismissal;
(b) the stipulation as to payment of salary in lieu of notice contained in the only proven contract of employment between the plaintiff and the 1st defendant.”
The appeal came up before the Court of Appeal and was heard by the Court (Coram Ademola, Nnaemeka-Agu and
Mohammed, JJCA.) on the 18th day of February, 1985. In a reserved well considered judgment delivered on the 18th day of March, 1985, the Court of Appeal unanimously allowed the appeal and set aside the decision of the High Court in the matter Suit No. LD/354/79 delivered on the 2nd day of November 1979 and dismissed the claim in toto with costs fixed at N700.00 in the Court of Appeal and N300.00 in the High Court. In the lead judgment delivered by Mohammed, JCA. (concurred in by Ademola and Nnaemeka-Agu, JJCA), the learned Justice observed and found in his own words:
“On the issue of period of service, it has been spelt out in exhibit D1 that a confirmed employee could have his service terminated by either party by giving thirty (30) days notice in writing of paying equivalent of one month basic salary if such termination is to take immediate effect. I am satisfied that all due processes have been followed in the case of termination of the respondents’ employment with the 1st appellant. There was therefore no breach of any conditions of respondent’s employment when 1st appellant served him with notice of termination of his employment with them.
The learned trial Judge’s finding should have been based on these facts
…………………….F…………………….
It was an agreement accepted by both parties in exhibit D1 that each party could give the other one month notice or one month basic salary in lieu of notice to cause an end to the contract of employment. The 1st appellants were in fact generous enough to give three months salary in lieu of notice and, in my view, the contract of service between them had been validly terminated
In view of the foregoing, I hold that the learned trial Judge was quite in error to award damages to the respondent for what he claimed as anticipatory breach of contract. The appeal must succeed and it is allowed. The judgment of Bada, J. in suit No. LD/354/79 delivered on the 2nd day of November, 1979 is set aside.”
The Court of Appeal however directed, on the issue of other entitlements that
“the appellants having offered the total sum of 32,867.59 less outstanding debt claims against the respondent claim of N12,335.08, must go ahead and pay the said amount to the respondent. I shall award N700.00 costs in favour of the appellants and N300.00 in the court below.”
This direction was necessary to forestall or prevent further litigation on the issue of other entitlements following the lawful termination of appointment.
The plaintiff was dissatisfied with the judgment of the Court of Appeal and proceeded to file his notice of appeal against the judgment to this Court. Five grounds of appeal were filed along with the notice and they read:
“(1) The learned Justices of the Court of Appeal erred in law in holding that Exhibit D1 governed the employment relationship between the parties when that document came into existence long after the employment contract had been established and when no evidence of its adoption by the appellant;
(2) The learned Justices of the Court of Appeal erred in law in holding that the termination of the plaintiff’s employment was proper since it was in accordance with the terms of Exhibit D1 when the said Exhibit was irrelevant to the facts of the case;
(3) The learned Justices of the Court of Appeal erred in law in holding that the allegation of malice was unsubstantiated when ample evidence of malice was adduced at the trial by the appellant which evidence was unchallenged by contrary evidence or attacked under cross examination by the defendants;
…………………….G…………………….
(4) The learned Justices of the Court of Appeal erred in law in interfering with the finding of learned trial Judge on the applicability of Exhibit D1 to the case when the said trial Judge had properly evaluated the evidence thereon before coming to a balanced decision which was neither capricious nor perverse;
(5) The learned Justices of the Court of appeal erred in law in holding that there was no evidence to support the threatened termination of the plaintiff’s employment since the trial court had dismissed his claim for declaration when the Court of Appeal as well as the trial court had held that, “both parties are in agreement that a contract of employment was established between” the parties.”
The relief the appellant sought from the Supreme Court was the reversal of the decision of the Court of Appeal and the restoration of the decision of the High Court.
The questions for determination in this appeal as formulated by the appellant in his brief are:
(1) whether or not in all the circumstances, the Court of appeal ought to have interfered with the findings of the learned trial Judge;
(2) whether it is correct as the court of Appeal held that Exhibit D1 governed the quantum of the plaintiffs entitlements;
(3) whether the CouVrt of Appeal was correct in holding that the termination of the plaintiff’s employment was proper and that the allegation of malice was unsubstantiated.
The short answers to the above questions must, in the light of the evidence on record, be in the affirmative.
It is to be observed that the appellant failed to appeal to the Court of Appeal against the dismissal of his main claims for
(1) a declaration that he is ‘still the Operations Manager of the 1st defendant/respondent company under the contract of employment; and
…………………….H…………………….
(2) An injunction restraining the 1st defendant/respondent by itself, its servants, and or agents or otherwise from committing a breach of the said contract of employment existing between the plaintiff/appellant and the 1st defendant/respondent or in anyway interfering with the plaintiff/appellant in the performance of his duties as Operations Manager.
It is also noteworthy that the plaintiff/appellant, apart from using the term anticipatory breach of the contract of employment’ neither pleaded nor proved the anticipatory breach. He only pleaded and proved threatened termination of appointment. A threat to terminate a contract of employment is only a threat. It is only when the employment is terminated that the circumstances can be examined to ascertain whether the contract is validly terminated or wrongfully terminated. If it is validly terminated, there can be no breach of contract.
But if the termination violates a term or condition of the contact, then the termination is wrongful. If there is no wrongful termination of employment, there can be no liability for breach of contract of employment. It is therefore necessary at this juncture to set out the important paragraphs in the pleadings to see if facts amounting to anticipatory breach have been pleaded. Paragraphs 11, 12, 13, 14, 15, 19, 20, 21, 22, 23, and 24 of the statement of claim which I consider material for the purpose of this judgment read:
“11. The plaintiff has always been and still is ready and willing to serve the 1st defendant company up to the date of retirement;
12. By letter dated 1st February, 1979, the 2nd defendant wrote to the plaintiff compelling him to proceed on leave on the ground that his future relationship with the company was under review, the plaintiff will contend that the hearing of this action that the said letter is invalid, null and void and of no effect;
13. By another letter dated Friday 23rd March, 1979, the 2nd defendant again wrote to the plaintiff inviting him to see him between 2.00p.m and 4.30p.m. that day;
14. In consequence of the matters pleaded in paragraph 13 of this statement of claim, the plaintiff called on the 2nd defendant on the said day in his office at 4.00p.m. whereupon the said 2nd defendant, in the presence of the 3rd defendant asked the plaintiff to tender his resignation of appointment as Operations Manager to the 1st defendant company and that if he failed to do so, he would be dismissed from the service of the said 1st defendant company. the plaintiff was given up till Monday 26th March, 1979 to hand over his letter of resignation;
15. The plaintiff did not agree to resign his appointment because of the matters herein before pleaded and also because of national interest and commenced this action on Monday 26th March, 1979 against the defendants.
…………………….I…………………….
19. The defendants have wrongfully suspended payment of the plaintiff’s salary and other benefits without just cause or excuse;
20. Alternatively, the plaintiff states that by refusing to pay his salary and other benefits as stated in paragraph 19 herein, the 1st defendant company anticipates committing a breach of the contract between it and the plaintiff which the plaintiff contends will amount to a wrongful, illegal, malicious and unconstitutional act and contrary to the Rules of Natural Justice.
21. The 1st defendant company has no right to terminate the plaintiff’s contract of employment before he attains the age of 60 years;
22. That no amount of compensation will be adequate to the plaintiff for any breach of his contract of employment;
23. The 2nd and 3rd defendants are wrongfully and unlawfully inducing the 1st defendant company to terminate the said plaintiff’s appointment without just cause or excuse;
24. The plaintiff has not been able to secure any employment in spite of several efforts to get an alternative job.” (Italics mine)
Nowhere was termination of employment pleaded. The plaintiff has therefore failed to plead the wrongful termination of employment. The defendants, in paragraph 3 of their statement of defence admitted paragraphs 13, 14 and 15 of the statement of claim and in paragraph 2 of the statement of defence, denied paragraphs 19, 20, 21, 22, and 23 of the statement of claim.
In paragraph 4 of the statement of defence, the defendants pleaded that they were not in a position to admit or deny paragraph 24 of the statement of claim. The defendants then proceed to plead in paragraphs 6, 7 and 8 as follows:
“6. With regard to paragraph 11 of the statement of claim, the defendants aver that by a letter dated 26th March, 1979 addressed to the plaintiff, he was informed that his services under the 1st defendant were no longer required as from 1st April, 1979. The defendants will rely on this letter at the trial of this action;
7. With regard to paragraph 14 of the statement of claim, the defendants aver that the plaintiff was not “dismissed” from his employment under the 1st defendant in which event he would have lost his entitlements. His appointment was merely terminated and his full entitlements as to pension, leave pay, leave bonus and salary in lieu of notice will be paid to him as will be itemised hereunder;
8. The defendants aver that the terms and conditions of employment of the plaintiff under the 1st defendant were at all times material to this action government by:
…………………….J…………………….
(a) the letter of offer of employment dated 30th December, 1969 addressed by the 1st defendant to the plaintiff and duly accepted by the plaintiff on 31st December, 1969;
(b) the 1st defendant’s “Employee’s Handbook” forwarded to the plaintiff and signed for by him on 30th September, 1975 The defendants will rely on the said letter of offer and handbook at the trial of this action.”
Since the plaintiff/appellant was already in employment as Operations Manager, the question of anticipatory breach does not arise. He was already executing the duties of the office and being paid his salary for work done. It appears to me that the learned trial Judge lost sight of the fact that there was no claim for damages for wrongful termination of employment before him. The statement of claim did not plead facts from which it could be inferred that such a claim was being made. Instead, the facts pleaded by the appellant amounted to a threat that he would be dismissed if he did not tender his resignation as Operations Manager. It did not go beyond that. On the terms of the contract of employment, the appellant pleaded in paragraphs 4, 5 and 12 of the statement of the statement of claim as follows:
4. The plaintiff was appointed by the 1st defendant company with effect from 7th March, 1978 as Operations Manager, a post which is permanent and pensionable;
5. It was agreed between the plaintiff and the said 1st defendant company that the plaintiff would continue in the said appointment as Operations Manager until the retiring age of 60 years unless the appointment was terminated for gross misconduct or complete inefficiency after several written warnings;
12. By letter dated 1st February, 1979, the 2nd defendant wrote to the plaintiff compelling him to proceed on leave on the ground that his future relationship with the company was under review. The plaintiff will contend at the hearing of this action that the said letter is invalid, null and void and of no effect.
The learned trial Judge commented on the evidence and found that the plaintiff whose duty it was to establish his contract with 1st defendant did not produce both the files and/or sundry names to establish his contract with the 1st defendant. Specifically, he held and said:
“The plaintiff therefore has failed to establish the terms of the contract between him and the 1st defendant except those terms that are admitted by the 1st defendant, that is to say:
(i) that the plaintiff is entitled to an agreed salary;
(ii) that he is entitled to work until the retiring age of 60 years;
(iii) that the plaintiff would participate in 1st defendant’s contributory Provident Fund and would be entitled to pensions and benefits;
…………………….K…………………….
(iv) that the plaintiff would enjoy leave allowance and benefit for health service.”
Dealing with the issue of the non-existent of the right to terminate plaintiff’s employment, the learned trial Judge also held that:
“In the foregoing circumstances, I hold that the plaintiff has not established that his appointment could not be terminated unless “for gross misconduct or complete, inefficiency after several warnings”
On the issue of breach of the Rules of Natural Justice, the learned trial Judge said:
“In the foregoing circumstances, I hold that the plaintiff has not established that his appointment could not be terminated unless “for gross misconduct or complete inefficiency after several warnings”
On the issue of breach of the Rules of Natural Justice, the learned trial Judge said:
“The plaintiff having been afforded the opportunity to offer his explanation, his complaint as to violation of the Rule of natural Justice in this regard cannot succeed.
In this matter, it was the N.N.P.C. who I have held violated the Rule of Natural Justice complained of by the plaintiff in his statement of claim. Indeed, the plaintiff was aware of this which explained why he wrote the letter-Exhibit 7 of which paragraph 3 is the relevant portion. the N.N.P.C. on the defendants or any of them, the aspect of the plaintiff’s claim which hinges on the breach of the rule of natural justice thereafter fails.”
The learned trial Judge dealing fuller with the issue of existence of power to terminate plaintiff’s appointment said:
“Although there is no evidence before me that the powers as to the management of the business of company as set out in Article 82 had been entrusted to the 2nd defendant, it is my view that since the plaintiff admitted that the 2nd defendant had power to take disciplinary action against him, such power would include power to terminate.
In the absence of any evidence from the plaintiff to show that the 2nd defendant could not terminate his appointment and on the authorities referred to above, I hold that the 2nd defendant did not need to show that the power he exercised on the plaintiff either as to the threat to terminate his appointment or request to him to resign had been delegated to him.
…………………….L…………………….
On the above findings, the plaintiff’s claim should have been dismissed in its entirety. However, it appears the learned trial Judge treated the issue of motive or malice as relevant made it a ground for treating the threat of termination of appointment as a breach of the contract of employment. This is borne out by the fact that after referring to the facts pleaded in paragraph 17 of the statement of claim which reads:
“The plaintiff avers that the 2nd and 3rd defendants were not and are not acting in the interest of the 1st defendant company but solely for their own selfish, irrelevant and improper motive.”
He considered the oral evidence of the plaintiff/appellant along with the documentary evidence Exhibit P4A written by the 3rd defendant/respondent to the 2nd defendant/respondent on 1st December, 1978 and commented as follows:
“Defence denied paragraph 17 of the statement of claim among others and put the plaintiff to the strictest proof thereof. The plaintiff’s evidence quoted was not controverted as the 2nd and 3rd defendants testified at the trial. Defence learned councel’s submission, in the main, was on Exhibit D1 which he submitted the 1st defendant complied with as to notice of termination, that is, one month’s notice or one month’s salary in lieu of notice and that in this case, the plaintiff was paid 3 months salary in lieu of notice together with all his entitlements.
The threatened termination of the plaintiff was based solely on the contract between the parties but because of the reasons contained in Exhibit P4 on which the plaintiff testified were prompted by malice the 2nd and 3rd defendants against him, the question arises: was it not incumbent on the defendants particularly the 2nd and 3rd defendants to rebut this evidence in view of their denial in that paragraph in their statement of defence? My answer to this is in the affirmative.
In the present case, there is no evidence before me to controver the evidence of the plaintiff that the exercise of the 2nd and 3rd defendants in connection with this matter was malicious and I cannot but hold that the threatened termination of plaintiff’s [employment] was unlawful (word in brackets supplied) (Italics mine).
It is to be observed that instead of proving the facts pleaded in paragraph 17 of the statement of claim, the evidence proved the contrary and that the 2nd and 3rd defendants/respondents were acting in the interest of the 1st defendant/respondent. However, it was as a result of this erroneous finding that the threatened termination of appointment was unlawful that the learned trial Judge proceeded to assess damages for anticipatory breach. I hold that the learned trial Judge erroneously held that the facts pleaded in paragraph 14 of the statement of claim amounted to or constituted anticipatory breach otherwise I can see no basis for proceeding to assess damages as he did. However, the learned justice of the Court of Appeal, Mohammed JCA. in his lead judgment properly corrected the error when he observed, commented and held as follows:
“The most important matter to consider is the condition of the respondent’s employment under the 1st appellant.
It is without doubt that the most important aspect of the respondent’s claim for damages was based on his assertion that he was entitled to work until he attained the age of 60 years under the company’s pensions scheme. This assertion has been spelt out in paragraph 5 of the statement of claim. Also during the course of his testimony before the court, he had this to say:
‘Under pension scheme at page 13, Exhibit D1 stipulates normal retiring age for male to be 60 years. I see page 4 of Exhibit D1, it provides for termination before I reach the age limit.’
…………………….M…………………….
The respondent was therefore blowing hot and cold in his testimony before the court on the issue of Exhibit D1 and I find it relevant to reproduce the opening paragraph of that exhibit. From this paragraph, one can see that that Exhibit D1 was binding on all the local staff under the employment of the 1st appellant. The paragraph reads as follows:
‘All local employees are subject to these rules and conditions of employment which, together with any additional ones laid down by the company from time to time and duly notified, shall form the conditions of their service with the company’
On the issue of the period of service, it has been spelt out in Exhibit D1 that a confirmed employee could have his service terminated by either party by giving 30 days notice in writing or paying the equivalent of one month basic salary if such termination is to take immediate effect. I am satisfied that all due processes have been followed in the case of the termination of the respondent’s employment with the 1st appellants. There was therefore no breach of conditions of respondent’s employment when the 1st appellants served him with the notice of termination of his employment with them.
The learned trial Judge’s finding should have been based on these facts. In any event, since the declaration sought for was dismissed by the trial court, I do not see where the learned trial Judge found evidence to support his finding on the threatened termination of the respondent’s employment….The learned trial Judge’s finding on one year’s notice or one year’s salary in lieu of notice is not supported by the evidence. I think the allegation of malice made against the 2nd and 3rd appellants were not substantiated.” (Italics mine)
That was well said by the learned Justice of the Court of Appeal.
The plaintiff’s case was not that his employment was terminated wrongfully before he filed his claim but that he was requested to resign and given till 26th March, 1979 to resign and that he refused to resign. He fearing that his appointment might be terminated by the 2nd defendant who had threatened to adopt such a course of action, he took out the summons seeking the relief claimed on the erroneous belief that his appointment could not be terminated before the age of 60 years.
…………………….N…………………….
In his reply to the statement of defence and counter-claim, the plaintiff/appellant denied that any letter of termination of his appointment was served on him as pleaded by the defendants/respondents. He therefore rested his claim on the request to resign.
The parties to any action before the court are bound by the pleadings filed by them and the court is not entitled to consider a claim not set out in the plaintiff’s statement of claim.
Learned counsel for the appellants protested vigorously against the reversal on appeal of the findings of fact made by the learned trial Judge. These findings, in the main, are (1) that malice and improper motives on the part of the 2nd and 3rd defendants have been established and (2) that the plaintiff/appellant is not bound by Exhibit D1 which sets out the condition of service of all local employees.
Learned counsel submitted that parties are bound by their pleadings and that since malice and improper motives were pleaded in paragraphs 17 and 23 of the statement of claim and denied in paragraph 2 of the statement of defence, the defendants failed to discharge the onus on them of disproving malice on their part the plaintiff having given evidence on the issue. Learned counsel then submitted that the failure to rebut the evidence of malice left the evidence uncontroverted the cogent with the fatal effect on the validity of the notice of termination of employment.
On Exhibit D1, the ‘Employees’ Handbook’ which contains the terms or conditions of service of all the local staff of the company, learned Counsel submitted that it is irrelevant to the issue of the quantum of entitlement of the plaintiff. He contended that as the learned trial Judge made a definite finding that Exhibit D1 does not have any binding effect on the plaintiff, the plaintiff was entitled to be given reasonable notice to terminate his employment. He then cited Daniesl v. Shell-BP (1962) 1 All N.L.R.19 and Alran v. Eshiett (1977) 1 SC.89 at 96-97 in support. Reasonable notice, he submitted, varies with the facts of each case according to Kusamotu v. Wemabod Estte Ltd. (1976) 11 SC.79 at 293 and contended that the 12 months notice ordered by the learned trial Judge was reasonable. Finally, he concluded his submissions by contending that it is well established in law that where in a contract of employment, in giving reasons for the termination, the employer makes false allegations motivated by malice then the court will hold that the employee in such circumstances had been wronged and his contract of employment breached.
These submissions are, in my view, not well founded. The conditions for interfering with the findings of fact laid down in Chief Frank Ebba v. Chief Ogodo (1984) 4 SC. 92 1 SC. NLR.372 and other judicial authorities are all present in this case. There was evidence that the appellant was bound by Exhibit D1 but the learned trial Judge in the face of overwhelming documentary and oral evidence went onto make a finding that appellant was not bound. Such a finding deserved to be set aside and was properly set aside by the Court of Appeal. It shows that the learned trial Judge failed to make proper use of the advantage of seeing and hearing the witnesses testify and of drawing proper conclusions from printed evidence.
Where in a contract of employment there exists a right to terminate the contract given to either party, the validity of the exercise of that right cannot be vitiated by the existence of malice or improper motive. It is not the law that motive vitiates the validity of the exercise of a right to terminate validly an employment of the employee. There must be other considerations. The exercise is totally independent of the motive that prompted the exercise.
…………………….O…………………….
In summary, there were very many flaws in the statement of claim and the evidence adduced on behalf of the plaintiff/appellant that spelt doom to the claims of the plaintiff either for declarations and injunction or for damages and injunction. It is a well settled principle of practice and procedure that parties are bound by their pleadings [Woluchem v. Gudi (1981) 5 SC.291 at 320; Emegokwe v. Okadigbo (1973) 4 SC. 113, 117; Metalimpex v. A.G. Leventis (Nig) Ltd. (1976) 2 SC.91 at p.102; George v. Dominion Flour Mills Ltd. (1963) 1 All NLR.71]. A claimant can only get what he claims if, both on the pleadings and the evidence, he has successfully made out and proved his claim. As no breach of the contract of employment was pleaded in the statement of claim and or by him, the plaintiff/appellant is not entitled to succeed and the High Court should have dismissed his claim in toto.
The High Court therefore erred in assessing and making an award of damages. A court if without power to award to a claimant what he did not claim and/or prove. The facts pleaded in the statement of claim were in support of threatened termination of appointment not in support of a wrongful dismissal of the appellant or anticipatory breach of contract of employment. The High Court should not have awarded the plaintiff/appellant damages for wrongful dismissal. The Court of Appeal was therefore justified in setting aside the judgment of the court of trial. See Egonu v. Egonu (1978) 11 & 12 SC.111 at 133; Etim Ekpenyong & 3 Ors. v. Inyang Effiong Nyong & Ors. (1975) 2 SC.71 at 80; Oridola v. M & K Ltd (1972) 2 SC.49 at 51].
The court in a civil case does not make for a party a case which the party had not made for itself; the High Court therefore erred in making a case of wrongful dismissal for the plaintiff/appellant. [Olaniyan v. University of Lagos (1985) 2 NWLR.599 (Pt.9); Eperokun v. University of Lagos (1986) 4 NWLR.162, 193/194]. the Court of appeal was therefore justified in interfering with the findings of fact.
In the ordinary case of master and servant as in the instant appeal, the master can terminate the contact with his servant at any time for good or for bad reasons or for none [Ridge v. Baldwin (1963) 2 All E.R. 66 at 71. Olaniyan v. University of Lagos (1985) 2 NWLR 599, 641. 669] The motive for exercising a right to terminate the contract of service of a servant does not render a valid exercise of that right ineffective. It is therefore irrelevant whether the exercise by the 2nd and 3rd defendants/respondents were for improper motives or actuated by malice and the failure of the 2nd and 3rd defendants/respondents to give evidence inrebuttal of the evidence of the plaintiff/appellant did not tilt the scales of justice in plaintiff’s favour.
…………………….P…………………….
A master who can lawfully dismiss a servant for disobedience and insubordination or sabotage of the employer’s policy cannot be guilty of a wrongful act if he retired the same servant on the grounds of opposition to the indigenisation policy. Retiring the present appellant with full benefits was a humanitarian act which the appellant deserved. This approach by the employer is to be commended especially for servants who have given many years of useful service. We had occasion to so commend the employers in the case of Sule v. Nigerian Cotton Board (1985) 2 NWLR.15 at 19 (Part 5).
It was for the above reasons that I dismissed the appeal.
Aniagolu, JSC. I dismissed the appeal filed by the plaintiff/appellant in the above appeal on 30th June 1987. I now give my said reasons.
The draft of the ‘Reasons for Judgment’ just delivered by my learned brother, Obaseki, J.S.C., was made available to me before now, and I entirely agree with him. It was for those reasons, which I adopt, that I dismissed the appeal.
I would go no further than to mention the fact that the relationship between the plaintiff and his employers had soured up, upon the employer’s realisation that the plaintiff had become disloyal by sabotaging the implementation of the employer’s policy on indigenization and working against the essential interests of the employer by such inimical actions as the delaying of overseas telex messages, which delays, as is well known in oil industries, could cost the employer heavy financial losses.
By reason of those devious actions, confidence was gone or substantially eroded and, the plaintiff/appellant was clearly guilty of gross misconduct for which, on the accepted general legal principles, he could have been discharged without notice and without wages (Boston Deep Sea Fishing Co. V. Ansel (1888) 39 Ch.D. 339)
The appellant could have been peremptorily dismissed and, in law, there is no fixed rule of law defining the degree of misconduct which would justify a dismissal (see: Clouston & Co. v. Corry (1906) A.C. 122; Sule v. Nigerian Cotton Board (1985) 2 N.W.L.R.15). It is enough that the conduct of the servant is of a grave and weighty character as to undermine the confidence which should exist between him and the master Sinclair v. Neighbour (1967) 2 W.L.R.1).
In the instant case, working against the deep interests of the employer clearly amounted to gross misconduct entitling the employer to peremptorily dismiss the appellant, irrespective of the “Employees’ Handbook”, Exhibit D1. The appellant should consider himself lucky that the employers had decided on a humanitarian approach, as disclosed in the evidence, and not to have insisted upon their strict legal rights.
…………………….Q…………………….
Kazeem, JSC. On 30th June, 1987, this appeal was summarily dismissed by this Court with N300.00 costs awarded in favour of the Respondents. The reasons for doing so was adjourned till the 18th September, 1987. I have since had the privilege of reading in draft the Reasons for Judgment to be delivered by my learned brother Obaseki J.S.C. on 18th September, 1987. It has fully dealt with all the facts and the submissions canvassed before us, and I entirely agree with the conclusions reached therein. I have nothing more to add.
Oputa, JSC. I have had the privilege of a preview of the lead Reasons for Judgment just delivered by my learned brother Obaseki, J.S.C. and I am in complete and total agreement with the reasons he adduced and I hereby adopt same as mine also.
On the 30th day of June, 1987, this Court heard arguments from both sides. After considering all the issues raised in the Briefs of Argument and points raised in elaboration by learned Counsel for the Appellant and the Respondents, this appeal was there and then unanimously dismissed and the Court reserved its Reasons for Judgment till today, Friday, the 18th day of September, 1987.
The lead Reasons for Judgment set out in great details the claims of the Plaintiff/Appellant, the relevant paragraphs of the parties’ pleadings and the findings and conclusion of the learned trial Judge. The learned trial Judge was not satisfied that he could make the declarations sought by the Plaintiff but he held that “the threatened termination of the plaintiff’s appointment was unlawful” and awarded the Plaintiff a total of N34,212.51. The Defendants’ appealed to the Court of Appeal Lagos Division.
Two questions now arise-
(i) Was there an anticipatory breach of the Appellant’s contract with the 1st Respondent.
(ii) Was there an actual breach by the 1st Respondent of its contract with the Appellant?
I will take the 2nd question first. The Plaintiff/Appellant in paragraph 21 of his Statement of claim put his case high as this:
“21. The 1st Defendant/Company has no right to terminate the Plaintiff’s contract of employment before he attains the age of 60 years.”
This paragraph is the crux of the matter, the pivot around which all other issues will revolve. Whether or not the right claimed in paragraph 21 of the Statement of Claim above exists, can only be gathered from the terms and conditions of Plaintiff/Appellant’s contract with the 1st Defendant/Respondent/Company. The duty to establish the averment of fact in this paragraph 21 above was squarely on the Plaintiff/Appellant. This he woefully failed to do. Rather the defence in paragraph 8 of the Statement of Defence pleaded as follows:
“8. The Defendants aver that the terms and conditions of employment of the plaintiff under the 1st Defendant were at all times material to this action governed by:
(a) The letter of offer of employment dated 30th December 1969 addressed by the 1st Defendant to the Plaintiff and duly accepted by the Plaintiff on 31st December, 1969.
(b) The 1st Defendants’ “Employee’s Handbook” forwarded to the Plaintiff and signed by him on 30th September 1975.”
The Employee’s Handbook was tendered as Exhibit D1. It is pertinent here to note that after the offer made on the 30th December 1969 and accepted by the Appellant on 31st December 1969 a valid contract came into existence. Apparently the terms and conditions of this contract were not specifically and fully set out in either the 1st Respondent’s letter of offer or the appellant’s letter of acceptance. Rather 5 years and 9 months later, on 30th September 1975 the 1st Respondent/Company issued Exhibit D1 which the appellant received and signed for on the same 30th September 1975. The Appellant’s evidence in cross-examination about Exhibit D1 at paragraph 59 of the record of proceedings is rather pregnant with meaning. It is as follows:
…………………….R…………………….
“I know the contents of Exhibit D1. There are three categories of staff-junior, senior and managements. Exhibit D1 is common to all grades. Some aspects of Exhibit D1 bind me. That was why it was sent to me and all officers and that was why I was made to sign it…………..Exhibit D1 contains part of my contract of service. It bound me in September 1975-even then (sic) it only contained part of my conditions of service. All other conditions are in the files of the Company
The question that should now arise is-What is the legal effect of EX.D1 on the rights and obligations of the parties? Was it (EX.D1) a variation or novation of the original contract? Whether one chooses to call EX.D1 a variation or a novation will be purely of academic interest. The important thing is the Appellant signed for EX.D1 and remained in the employment of the 1st Respondent’s Company from 30th September 1975 until 26th day of March, 1977, when he issued his Writ of Summons commencing proceedings. He (the appellant) was thus not only by his admissions in cross-examination but also by his conduct justified the first Respondent/Company in believing that he (the Appellant) has accepted to be bound by all the terms and conditions contained in Exhibit D1. He, the Appellant, cannot now be heard to say that he is not bound by EX.D1. By his failure to question any part of EX.D1 or to repudiate same for a period of almost one and a half years, the Appellant is now estopped by his conduct from denying that he is bound by the Employee’s Handbook, EX.D1. He is bound as he himself admitted.
The Court of Appeal (Ademola, Nnaemeka-Agu and Mohammed, JJ.C.A.) was therefore right in holding that:
“On the issue of period of service, it has been spelt out in exhibit D1 that a confirmed employee could have his services terminated by either party by giving thirty (30) days notice in writing or paying equivalent of one month basic salary if such termination is to take immediate effect. I am satisfied that all due processes have been followed in the case of termination of the Respondent’s employment with the 1st Appellant. There was therefore no breach of any conditions of respondent’s employment when 1st appellant served him with termination of his employment with them.”
I am in full agreement with the Court of Appeal that the termination of the Appellant’s contract with the 1st Respondent/Company under the terms and conditions in EX.D1 mutually agreed to, both by the evidence and the conduct of the parties, cannot amount to a breach of contract.
The second issue is-Where, from the facts and circumstances of any given case, the Courts holds that there has not been a breach of contract; can those same facts and circumstances sustain an action for “unlawful threatened termination” of the self same contract? In his original action the Plaintiff now Appellant claimed:
“1. A Declaration that:
(a) The Plaintiff is the Operations Manager of the 1st Defendant/Company under a contract of employment.
(b) Any breach of the said contract of employment between the Plaintiff and the 1st Defendant/Company is illegal, invalid, ultra vires, null and void and no effect.
2. Any injunction restraining the 1st Defendant/Company by itself, its servants and/or agents or otherwise from committing a breach of the said contract of employment existing between the Plaintiff and the 1st Defendant/Company or in any way interfering with the Plaintiff in the performance of his duties as Operations Manager.
Alternatively the plaintiff claims against the 1st Defendant/Company N634,833.00 special and general damages for anticipatory breach of contract
…………………….S……………………. “
It is important to note that both the main claim and the alternative claim were directed against the 1st Defendant/Company. There were o specific claims against the 2nd and 3rd Defendants.
What was the judgment of the trial court with regard to the main claim for a declaration and injunction? After reviewing the whole case the learned trial Judge, Bada, J. at p.131 held:
“In the circumstances I cannot make the declaration sought. In so far as a declaration cannot be made an order for injunction, in the circumstances cannot be made.”
The Court of Appeal dealing with this aspect of the case observed at p.197:
“…since the declaration sought was dismissed by the trial Court, I do not see where the learned trial Judge found evidence to support his finding on the threatened termination of the Respondent’s employment.”
I do not see one either.
But, ab abundantia cautela, let me review the pleadings and evidence in support of this alleged threatened breach of contract. By paragraphs 12, 13, 14 and 15 of his Statement of claim, the Plaintiff/Appellant Pleaded:
(i) A letter of 1st February 1979 by the 2nd Defendant “compelling him (the Plaintiff) to proceed on leave on the ground that his future relationship with the Company was under review.
(ii) That by another letter dated Friday, 23rd March 1979 “the 2nd Defendant wrote to the Plaintiff inviting him (the plaintiff) to see him (the 2nd Defendant) between 2p.m. and 4p.m. that day.”
(iii) That “the 2nd Defendant in the presence of the 3rd Defendant asked the Plaintiff to tender his resignation of appointment as Operations Manager to the 1st Defendant/Company.”
(iv) That “the Plaintiff was given up till Monday, 26th March, 1979, to hand over his said letter of resignation.”(v) That the Plaintiff did not agree to resign his appointment.”
The Plaintiff did not in his Statement of Claim follow the course of events to its logical conclusion-which is that on his failure to resign as requested the Defendants pursuant to EX.D1 “terminated his appointment” with his full entitlements as to pension, leave pay, leave bonus and salary in lieu of notice.” This was pleaded in paragraph 7 of the Statement of Defence. Paragraph 17 of the Statement of Claim averred that in terminating is said appointment “the 2nd and 3rd Defendants were not acting in the interest of the 1st Defendant/Company but solely for their own selfish, irrelevant and improper motive.”
The question now is-Even if all the facts alleged in paragraphs 12, 13, 14, 15 and 17 of the Statement of claim are established will those facts mount to an actionable “threatened breach of contract”? Surely the 2nd Defendant as Managing Director of the TEXACO Nigeria Ltd. (1st Defendant) and the 3rd Defendant as the General Manager must have and did have the right under EX.D1 to terminate the appointment of any employee of the 1st Defendant/Company including the Plaintiff/Appellant. If these two Directors exercised their right under the contract, I cannot see how their action will ground a claim for “unlawful threatened breach of contract.” It sounds preposterous to hold that where the facts reveal no breach of contract, nonetheless, they can ground an action for an alleged “unlawful threatened breach of contract.”
There may in proper cases be what the law regards as an “anticipatory breach” by one party to the contract, entitling the other party either to treat such breach as discharging him from further performance and sue for damages forthwith as in Hochster v. Dela Tour (1853) 2 E & B 678 or treat the entire contract as at an end except for the purpose of bringing an action upon it for damages sustained by him in consequence of such renunciation: Moschi v. Lep Air Services ltd. (1973) A.C.331 at p.356. In this case far from treating the contract as at an end the
Plaintiff/Appellant claimed a declaration that he is still “the Operation Manager of the 1st Defendant/Company.”
…………………….T…………………….
What is intriguing in this case is that the 2nd and 3rd Defendants have the power and the right under EX.D1 to terminate the appointment of the Plaintiff/Appellant by giving him one month’s Notice or paying one month’s salary in lieu thereof. They in fact paid him 3 months salary and gave him (the Appellant) all his entitlements. The Respondents were very generous to the Appellant and it is a generosity which the Appellant could neither appreciate nor even deserved. I do not see anything in the facts and circumstances of this case to support a claim for “unlawful threatened breach of contract.” or more elegantly for an anticipatory breach of contract.”
This was a contract of service where each party can give the opposite party due notice to end the contact. An anticipatory breach of contract occurs if before the time arrives at which a party is bound to perform a contract, he expresses an intention to break it or acts in such a way as to lead a reasonable person to the conclusion that he does not intend to fulfil his part, or disables himself from doing so. It is then that it can be said that their has been an anticipatory breach of contract. Lord Esher, M.R. very eloquently stated the doctrine of anticipatory breach in Johnstone v. Milling (1886) 16 Q.B.D. 460. From its definition and the judicial pronouncements on the doctrine of anticipatory breach, it is quite clear that the doctrine does not apply to the facts and circumstances of this case. For one thing the Appellant was already in employment as Operations Manager and again he had no intention of treating the contract as at an end. He wanted to continue as Operations Manager until he attained the age of 60 years “unless the appointment be terminated for gross misconduct or complete inefficiency after several written warnings” (see paragraph 5 of the Statement of Claim).
The Plaintiff/Appellant in paragraph 5 of his Statement of claim concedes that his contract or his appointment a Operations Manager is not in perpetuity but that it can be terminated. It was terminated what can only arise is the question whether that termination was lawful or unlawful. The Court of Appeal held, and rightly too, that the termination was lawful. That should be the end of the matter.
In the final result, for all the reasons given above and or the fuller reasons in the lead Reasons for Judgement of my learned brother Obaseki, J.S.C. which I adopt as mine, this appeal ought to be dismissed. It was for all those reasons that I on the 30th day of June, 1987, did dismiss the appeal.
Bello, CJN. I have read in advance the reasons for judgment just delivered by my learned brother, Obaseki J.S.C. which I adopt as mine.
Appearances
Mr. Kayode Sofola For the Appelants
Mr. George Nicol For the Respondents
MTN NIGERIA COMMUNICATION LIMITED v. CORPORATE COMMUNICATION INVESTMENT LIMITED
On Friday, the 15th day of March, 2019
SC.674/2014Before Their Lordships
IBRAHIM TANKO MUHAMMADJustice of The Supreme Court of Nigeria
MARY UKAEGO PETER-ODILIJustice of The Supreme Court of Nigeria
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUNJustice of The Supreme Court of Nigeria
AMIRU SANUSIJustice of The Supreme Court of Nigeria
EJEMBI EKOJustice of The Supreme Court of Nigeria
Between
Before Their Lordships
IBRAHIM TANKO MUHAMMADJustice of The Supreme Court of Nigeria
MARY UKAEGO PETER-ODILIJustice of The Supreme Court of Nigeria
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUNJustice of The Supreme Court of Nigeria
AMIRU SANUSIJustice of The Supreme Court of Nigeria
EJEMBI EKOJustice of The Supreme Court of Nigeria
Between
MTN NIGERIA COMMUNICATION LTD – Appellant(s)
AND
CORPORATE COMMUNICATION INVESTMENT LTD – Respondent(s)
……………………………A……………………………
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN, J.S.C. (Delivering the Leading Judgment): This appeal is against the judgment of the Court of Appeal, Port Harcourt Division delivered on 21st July, 2014, dismissing the appellant’s appeal against the judgment of the High Court of Rivers State sitting at Port Harcourt, delivered on 6th August, 2013.
The facts of this case, as can be gleaned from the pleadings of the parties are as follows: The respondent is one of the appellant’s trade partners. Their business relationship started sometime in 2005 and over the years has been governed by various agreements entered into between them. In particular, in January 2011 the appellant issued fresh terms of agreement and it was specifically stated that the 2011 agreement supersedes previous agreements. The 2011 agreement was identified as No. 381730 (Exhibit A). It was a term of the agreement that the Claimant/Respondent had the right to terminate the agreement upon giving the Defendant/Appellant 3 months’ notice in writing, while the defendant/appellant had the right to terminate the agreement upon giving the claimant/respondent 60 days written notice.
The agreement had some annexures, which, according to the respondent provided for the rights and duties of the parties.
It was the contention of the claimant/respondent that despite trading and carrying on business with the defendant/appellant in accordance with Exhibit A, the appellant purportedly terminated the agreement vide a letter dated 18th March 2011 (Exhibit B). It contended that the letter was not in compliance with the terms of Exhibit A and was in fact addressed to a different company, to wit: Corporate Communication Ltd. The claimant/respondent protested by writing a letter dated 29th March 2011. The claimant/respondent pleaded that on 4th April 2011, it placed orders for the appellant’s products, which were rejected on account of the termination letter.
Despite its solicitor’s letter challenging the termination of the agreement and requesting an amicable settlement, the appellant withdrew 27 SIM registration kits assigned to the respondent. The respondent pleaded that in compliance with previous Trade Partner Agreements between the parties, it had incurred expenses in procuring facilities and equipment which were of no more use to it, in view of the purported termination of Exhibit A. The claimant/respondent pleaded that the abrupt cancellation of orders without a formal and valid termination of their agreement has caused it huge financial loss.
……………………………B……………………………
By its writ of summons and statement of claim dated 12th May, 2011, the respondent sought the following reliefs against the appellant:
(a) A declaration that the purported termination of Agreement Number 381730 between the Claimant and the Defendant on the 1st day of April. 2011 is not valid, oppressive and wrongful.
(b) A declaration that the purported letter of termination of the agreement number 381730 dated 18th March, 2011 does not refer to the Claimant and cannot be relied upon by the Defendant as proper Notice of termination against the Claimant.
(c) N500,000,000.00 as general damages for the unwarranted and abrupt cancellation of Claimant’s Orders as a result of the wrongful, invalid or oppressive conduct of the Defendant against the Claimant.
In its Statement of Defence dated 5th July, 2011, the appellant pleaded that the agreement was validly terminated in accordance with clause 16.2 thereof for reason of non-performance and rejected the claim that the respondent had incurred any expenses on its account. The respondent filed a Reply to Statement of Defence dated 28th July, 2011. The parties called one witness each who adopted their written statements on oath and were cross examined thereon. Several exhibits were admitted in evidence through the respondent’s witness without objection. Among the documents tendered was Exhibit A, the Trade Partner Agreement between the parties.
At the conclusion of the trial, the parties exchanged written addresses. In the course of his written submissions, learned counsel for the Claimant (now respondent) argued that the Statement of Defence filed by the appellant was defective, as it did not disclose the name of the legal practitioner who signed it “for: G. Akitoye Esq.” The learned trial Judge agreed with him and held the Statement of Defence to be incompetent. The Court further held that in the circumstances, the evidence of DW1 predicated upon an incompetent Statement of Defence, was of no moment. In other words, it was discountenanced.
……………………………C……………………………
In the course of writing the judgment, the learned trial Judge observed that Exhibit A was not signed by the appellant. Having raised the issue suo motu, he invited the parties to address him on the weight to be attached thereto. Both counsel filed written addresses on the issue. The learned trial Judge held at page 176 of the record:
“Throughout the cross examination of C.W.1, Learned Counsel for the defendant did not ask him any question to disprove the authenticity of Exhibit A. The authenticity of Exhibit A’ would have been in doubt if it was prepared by the claimant, the claimant signed it but the defendant did not sign and the claimant is relying on same in the instant case.
Furthermore, the defendant in alleging that its relationship with the claimant has been terminated relied on Exhibit A. See the letter of termination of the agreement sent to the claimant by the defendant, Exhibit B: In this regard, in so far as the claimant and the defendant transacted their business in compliance with the terms of Exhibit A’ and the defendant relied on Exhibit A’ in terminating its relationship with the claimant, the fact that the defendant did not sign Exhibit A’ is of no moment. This is so because equity looks on that which ought to be done.
Learned Counsel for the defendant cannot be heard to say that Exhibit A’ was inadmissible in evidence and also a worthless document when it was the defendant who prepared it and made the claimant to sign but for reasons best known to the defendant, its Chief Executive Officer or officers did not sign but rather went on carrying on business with the claimant in accordance with the terms of Exhibit A.”
His Lordship went on to hold that Exhibit A was rightly admitted in evidence. After a careful consideration of the entire case, judgement was entered in the claimant/respondent’s favour to the effect that the appellant was in breach of Exhibit A in terminating the agreement between the parties. The respondent was awarded the sum of N250 million as general damages and costs of N20, 000.00.
The appellant was dissatisfied with the judgment and filed an appeal at the Court below. The appeal was dismissed on 21/7/2014. The appellant is still dissatisfied, hence the instant appeal. The extant notice of appeal is the Amended Notice of appeal filed on 19/1/2018 but deemed filed on 28/11/2018. It contains 12 grounds of appeal.
At the hearing of the appeal on 19th December, 2018, D.C. DENWIGWE, SAN adopted and relied on the Appellant’s amended brief of argument and reply brief, both deemed filed on 28/11/2018, along with a list of additional authorities filed on 19/12/2018, in urging the Court to allow the appeal. NYENGIEREFAKA JOSHUA ESQ., adopted and relied on the amended respondent’s brief, settled by him and deemed filed on 28/11/2018 in urging the Court to dismiss the appeal.
……………………………D……………………………
The appellant formulated 4 issues for determination as follows:
(a) Whether the Court of Appeal below was right when it acted on extraneous matters including the evidence of the a D.W.1 at the trial in reaching its decision to affirm the judgment of the trial Court? (Grounds 6 and 11).
(b) Whether the Court of Appeal was right in holding that the document which was admitted in evidence at the trial as Exhibit ‘A” created an implied, binding and enforceable contract between the appellant and the respondent? (Grounds 1, 5,7, 8, 9, 10).
(c) Whether the affirmation of the award of general damage made to the respondent against the appellant and the award of costs made against the appellant is justified? (Grounds 2, 3, and 4).
(d) Whether the Learned Justices of the Court of Appeal was (sic: were) right when they held that the appeal lacks merit? (Ground 12).
The respondent also formulated 4 issues for determination. They are practically identical to the appellant’s issues with just slight modifications in expression. I shall therefore adopt the issues as formulated by the appellant in the resolution of this appeal. Issues (a), (b) and (c) are sufficient to dispose of the appeal.
Issue (a)
Whether the Court of Appeal below was right when it acted on extraneous matters, including the evidence of the DW1 at the trial in reaching its decision to affirm the judgment of the trial Court?
Learned Senior Counsel submitted that the effect of the unchallenged finding of the trial Court that the Statement of Defence was incompetent and that the evidence of DW1 was of no moment, is that the Statement of Defence never existed. He referred to: U.A.C Vs MC Foy (1961) 3 ALL ER 1169; Oyeyemi Vs Owoeye (2017) 12 NWLR (Pt. 1580) 364 @ 423 B-E and 395-396 H-C. He noted that the lower Court affirmed this finding.
He submitted that in the circumstance, the Reply to the Statement of Defence together with the further claimant’s Deposition of CW1 at pages 93-96 of the record are also void and should be expunged from the record. He submitted that any evidence extracted from CW1 on facts not pleaded are inadmissible. He referred to SLEE Transport Ltd. Vs Oluwasegun (1973) 9-10 SC 7; (1973) NSCC Vol. 8 470 @ 473-477; Emegokwue Vs Okadigbo (1973) 4 SC 113; George Vs Dominion Flour Mills Ltd. (1963) 1 SCNLR 177; Gagarau Vs Pashiri (2006) 2 NWLR (Pt.962) 521 @ 538 G-N.
In paragraph (a) 05 at pages 8-9 of his brief, the Learned Senior Counsel provided an index of the evidence of CW1 which ought to be expunged. In paragraph 2(i)-(vi), he also set out findings of the lower Court based on facts not derived from the Statement of Claim and the witness deposition of the respondent nor from the cross-examination of CW1 on pleaded facts. He referred specifically to the finding of the lower Court at page 337 of the record with regard to the award of damages of N100 million in favour of the respondent and submitted that both the trial Court and the Court below relied on extraneous facts, which do not form part of the record, to justify the award.
……………………………E……………………………
Learned Senior Counsel for the respondent rejected the assertion of the appellant’s senior counsel. He submitted that at the Court below, the Court’s attention was drawn to certain findings of the trial Court not appealed against. He submitted that the position of the law is that any decision on any point of law or fact not appealed against is deemed to have been conceded by the party against whom it was decided and remains valid and binding on all the parties. He referred to: Anyanwu Vs Ogunewe (2014) ALL FWLR (Pt. 738) 1012 @ 1037 D-E.
He submitted that it was argued before the lower Court that the following issues were deemed to have been conceded by the appellant:
(a) That the agreement the appellant relied upon to issue Exhibit “B” was Exhibit “A”; and
(b) That the Appellant relied on clause 16.2 of Exhibit “A” in terminating Exhibit A” which constitute admissions against the appellant as same supports paragraphs 6 and 8 of the Respondent’s Statement of Claim (Pages 4 and 5 of the records), and remain admissible irrespective of the fact that the Appellant’s Statement of Defence and deposition were struck out.
He submitted that the appellant did not challenge the assertion in its reply brief and is deemed to have admitted same. He also submitted that the findings of the Court below are not based on extraneous matters but on matters clearly pleaded in the Respondent Statement of Claim.
Learned Senior Counsel argued that although the appellant’s Statement of Defence was struck out, its witness gave viva voce evidence under cross examination, which in effect challenged the respondent’s Statement of Claim. He submitted that having put himself forward to be cross examined, the Court was entitled to rely on the oral evidence elicited therefrom. He submitted that a party is fully entitled to rely on the evidence elicited from his opponent’s witness under cross examination, which corroborated facts already pleaded in the Statement of Claim. He referred to: Adeosun Vs Governor Ekiti State (2012) 4 NWLR (Pt.1291) 581 @ 600; Gaji Vs Paye (2003] 8 NWLR (Pt. 823) 583 @ 611. He submitted that in as much as the Respondent’s further claimant’s deposition and the admission extracted from DW1 under cross examination, support the respondent’s statement of claim, the Court was entitled to rely on them in reaching its decision. He submitted however, that the two lower Courts did not in fact rely on the Reply to the Statement of Defence and the Respondent’s further witness deposition but relied on the fact that the appellant’s witness, DW1, admitted that the claimant was entitled to the sum of N100 million for the SIM Cards reactivation. He argued that this amounts to an admission against interest which is admissible.
In paragraph 4.29 (a) to (k) of his brief, learned senior counsel addressed the issues highlighted in the amended appellant’s brief on the alleged extraneous matters taken into consideration by the Court below and reiterated the position that all the Courts findings are supported by the record. He submitted that what an appellate Court is concerned with is the correctness of the decision and not whether the reasons for the decision are right or wrong. See: Dickson Arisa Vs The State(1988) 7 SCNJ 76 @ 84 lines 20-25.
He submitted further that an appellate Court must limit itself, to the grounds of appeal and the issues
formulated from the said grounds. He contended that in the instant case the issues raised by the appellant concerned the validity of Exhibit A, the award of N250 million as damages and the award of costs. He submitted that the findings of fact by the trial Court on these issues were not challenged at the Court below and that it amounts to raising a new issue, for which no leave has been sought, to argue before this Court that the findings of the two lower Courts are perverse. He submitted that in this case, the findings and decision of the lower Court were based on the unchallenged findings of the trial Court and upon a correct assessment of damages and costs.
……………………………F……………………………
In his reply brief, the learned senior counsel sought to distinguish the authority of Gaji Vs Paye (supra) relied upon by learned senior counsel for the respondent. He submitted that in Gaji’s case it was held that the entitlement of a plaintiff to rely on evidence elicited from a defence witness under cross examination is restricted to evidence given in respect of issues joined between the parties or in respect of a fact pleaded by the defence. He referred to: Bamgboye Vs Olarewaju (1991) 4 NWLR (Pt. 184) 132 @ 155 C-D. He submitted that in the instant case, the pleading and deposition of the appellant’s witness were frontloaded and having been declared void for incompetence, the effect in law is that nothing can be placed on them. He argued that in the circumstances, the issue of admission against interest does not arise.
My Lords, in order to do justice to this issue, I have read over several times, the judgments of the two lower Courts. The appellant’s main grouse under this issue is that the lower Court and the trial Court relied on the evidence of DW1 elicited under cross-examination and the claimant’s reply to the statement of defence notwithstanding the fact that the pleadings of the defendant/appellant had been struck out for incompetence.
At page 171 of the record, the learned trial Judge held as follows:
“In the instant case, since the defendant’s statement of defence has been found to be incompetent and the evidence of its sole witness DW1 is of no moment, the Court is now left with the evidence of claimant’s sole witness, CW1 and his answers under cross examination.
In other words, the evidence to be evaluated in this judgment is the evidence of CW1 and the documents tendered as exhibits.”
In keeping with this self admonition, His Lordship at pages 194-198 comprehensively reviewed the pleadings of the claimant along with the evidence of CW1 and the documents tendered, to determine whether the claimant was entitled to its claim for damages on account of expenses incurred in the course of the agreement between the parties. His Lordship concluded thus at page 197 lines 25-27 to page 198 lines 1-9 of the record:
In the case of HAROLD SHODIPO & CO VS DAILY TIMES (1972) N.S.C.C. 635 @ 637, the Supreme Court per Elias (CJN) while explaining the meaning of general damages as opposed to special damage, stated as follows:
“Whereas a claim for general damage means this:
“We cannot prove particular items but we can prove beyond all possible doubt that there has been pecuniary loss.”
Going by the above authority, the evidence of CW1 on expenses incurred in running the defendant’s business as per Exhibit A; the amount of money due to the claimant for SIM Card reactivation and the rejection by defendant of the order the claimant placed for its products, I find and hold that the claimant have (sic) proved beyond all possible doubts that it incurred pecuniary loss suffered by the other party which is reasonably foreseeable as a result of the breach.”
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In the next paragraph, His Lordship stated, inter alla:
“Now assuming I was wrong in holding that the statement of defence of the defendant was incompetent and the evidence of DW1 therefore of no moment. In other words, the statement of defence of the defendant is competent and evidence of DW1 of moment, I am of the view that the evidence of DW1 supports the claimant’s case. This is because DW1 stated that Exhibit 4′ was duly terminated in accordance with clause 16.2 of Exhibit A’.
In effect therefore, in terminating Exhibit A’ the defendant relied on clause 16.2 thereof. This Court having found that the defendant did not give the requisite notice as required by said clause 16.2, the evidence of DW1 therefore supports claimant’s case that the termination was in breach of Exhibit ‘A’.
Furthermore, the evidence of DW1 when viewed against the claim for damages by the claimant supports the claimant claim.
For example, DW1 submitted that the claimant is entitled to the sum of 741100,000,000.00 for the SIM Cards it reactivated. DW1 also admitted the rejection by the defendant of the order placed by the claimant for its products because of Exhibit ‘B: He also under cross examination stated that the profit a trade partner like the claimant makes, depends on the volume of order placed by the trade partner or sales and went on that a trade partner could make a commission of N500,000,000.00.
Whether this case is considered with or without the statement of defence and evidence of DW1, I am of the view that the defendant has breached the terms of Exhibit A’ and the claimant suffered loss as a result of the breach.” (Underlining mine)
What is quite apparent from the portions of the judgment reproduced above, is that the learned trial Judge considered only the pleadings and evidence led by the claimant in reaching his decision on the expenses incurred. He was being cautious, since his was not the final Court, by considering the pleadings and evidence led by the appellant in the event that he was overruled on the incompetence of the Statement of Defence.
This approach is in keeping with the advice often given by this Court that where a Court is not the final Court on the subject matter, it should endeavour to proffer an opinion on all the issues submitted to it so that the appellate Court would have the benefit of the Court’s reasoning in the event that it does not agree with the position of the Court on the issue of competence, jurisdiction, locus standi, etc.
The learned trial Judge also stressed that he would have reached the same conclusion with or without the evidence of DW1 and the Statement of Defence.
The lower Court agreed with the finding of the learned trial Judge on the incompetence of the Statement of Defence and the fact that the evidence of DW1 was of no moment.
It follows that what was in issue before the lower Court was whether the finding of the trial Court based on the pleadings and evidence of the appellant alone, was justified.
As rightly, submitted by learned counsel for the respondent, an appellate Court is more concerned with whether the decision reached by the lower Court is correct and not necessarily whether a wrong reason was given for reaching a right decision.
See: Arisa Vs The State (1988) 3 NWLR (Pt. 83) 386; Ojengbede vs Esan & Anor. (2001) 18 NWLR (Pt. 746) 771. If the decision is right, it will be upheld notwithstanding the fact that a wrong reason was given for the decision. It is only where the misdirection has caused the Court to come to a wrong decision that it would be material. See: Oladele & Ors Vs Aromolaran II & Ors. (1996) 6 NWLR (Pt.453) 180.
Having carefully read the judgement of the Court below, it would appear that the appellant’s main quarrel is with the finding that DW1 admitted that the respondent was entitled to the sum of N100 million for the SIM Cards it reactivated and also testified as to what the respondent would have earned if the contract had been carried out as provided in Exhibit A. It is pertinent to note that neither of the Courts relied on the Reply to the Statement of Defence or the further deposition of DWI in support of the said Reply. What they referred to were admission made by DWI in the course of cross examination.
……………………………H……………………………
On the issue of evidence elicited from a witness under cross examination, I do not agree with learned senior counsel for the appellant that because the evidence in Chief of DW1 was found to be of no moment, having been hoisted upon an incompetent statement of defence, the cross examination of the witness should also be jettisoned. The purpose of evidence in chief is to lead evidence in support of a party’s pleadings. The purpose of cross examination is to discredit the witness of one’s opponent and make his testimony unworthy of belief. Cross-examination of a witness may also enhance the case of the party cross-examining by affirming of supporting his position.
His Lordship Onnoghen, JSC (as he then was) provided an illuminating explanation on the treatment of evidence elicited under cross-examination in the case of: Akomolafe Vs Guardian Press Ltd. (2010) 3 NWLR (Pt.1181) 338 @ 351 F-H, as follows:
“On the Issue as to whether both parties called evidence in support of their pleadings, as held by the lower Court, it is settled law that evidence elicited from a party or his witness(es) under cross examination, which goes to support the case of the party cross-examining, constitute evidence in support of the case or defence of that party. If at the end of the day the party cross-examining decides not to call any witness, he can rely on the evidence elicited from cross examination in establishing his case or defence. In such a case, you cannot say that the party calls no evidence in support of his case or defence. One may however say that the party called no witness in support of his case or defence, not evidence, as the evidence elicited from his opponent under cross examination which are in support of his case or defence constitute his evidence in the case.
There is however a catch to this principle. The exception is that evidence so elicited under cross examination must be on facts pleaded by the party concerned for it to be relevant to the determination of the question/issue in controversy between the parties.
I have considered the authority of Gaji Vs Paye (supra) relied upon by learned senior counsel for the respondent and which learned senior counsel for the appellant sought to distinguish on the basis that evidence elicited under cross-examination is only relevant if it arises from issues joined between the parties. In other words, that it is only where both parties have filed pleadings that issues can be joined and the party cross-examining may rely on evidence elicited under cross-examination. With due respect to learned senior counsel, the submission does not reflect the decision of this Court in that case. His Lordship, Niki Tobi, JSC held at page 611 A-B of the report:
“Evidence procured from cross examination is as valid and authentic as evidence procured from examination-in-chief. Both have the potency of relevancy and relevancy is the heart of admission in the law of Evidence. Where evidence is relevant, it is admissible and admitted whether it is procured from examination-in-chief or cross-examination.“(Underlining mine)
For this reason, lawyers are often advised to be wary of questions they put to witnesses under cross-examination, particularly when they do not know the answer the witness would give. This is because the response to a question put to a witness under cross-examination may turn out to sound the death knell for his opponent’s case.
Again, in Adeosun Vs Governor, Ekiti State (2012) 4 NWLR (Pt. 1289) 581 @ 602 A-B, it was held per Onnoghen, JSC (as he then was):
“it is settled law that evidence elicited from the cross-examination of a defence witness, which is In line with the facts pleaded by the plaintiff, forms part of the evidence produced by the plaintiff in support of facts pleaded in the Statement of Claim and can be relied upon in proof of the facts in dispute between the parties.” (Underlining mine)
From the authorities cited above, it is clear that the claimant was fully entitled to rely on evidence elicited from DW1 under cross-examination, which supported the claimant’s pleadings.
……………………………I……………………………
In paragraph 19 of the Statement of Claim, it is averred that “the defendant is indebted to the claimant to the tune of N100,000,000.00” for the SIM Kit activation exercise and other repaid activation bonuses. The appellant’s witness, under cross-examination admitted that the respondent was entitled to N100,000,000.00 for the exercise. It is an admission against interest. In paragraph 21 (c) of the Statement of Claim, the respondent claimed the sum of N500,000,000.00 as general damages for the unwarranted and abrupt cancellation of its orders. Under cross-examination, DW1 admitted that a trade partner could make a commission of up to N500 million depending on the volume of the order placed by the trade partner or its sales. These are not extraneous matters. They are facts pleaded by the claimant. It was entitled to rely on the evidence elicited from DW1, which supported its pleadings.
I have considered the index of evidence compiled by learned senior counsel for the appellant regarding evidence, which in his opinion is based on facts not pleaded. It is important to note that parties are required to plead facts and not evidence.
The Court is also entitled to draw inferences from the evidence before it, which the lower Court did in this case. I am not satisfied that the lower Court relied on extraneous matters in reaching its decision.
This issue is resolved against the appellant.
Issue (b)
Whether the Court of Appeal was right in holding that the document which was admitted in evidence at the trial Court as Exhibit A created an implied, binding and enforceable contract between the appellant and the respondent?
In arguing this issue, learned senior counsel addressed some preliminary points, to wit: that apart from pleading and tendering Exhibit A, the respondent did not lead any evidence in respect of any of its terms; that the respondent is not entitled to rely on evidence extracted under cross-examination, which was not pleaded; that while the Court of Appeal held that the effective date of Exhibit A is presumed to be 5/1/2011, the trial Court held that Exhibit A was undated; that the conclusion reached by the Court of Appeal confirms the fact that Exhibit B does not relate to Exhibit A since Exhibit B refers to the agreement executed between the Trade Partners effective from 1st January 2011.
Learned Senior Counsel submitted that it is trite that parties are free to make their contracts and that the Court does not make contracts for parties. He cited several authorities, includingLarmie Vs D.P.M.S. Ltd. (2005) 18 NWLR (Pt. 958) 438 @ 459 D-E; 467 E & 476-477 H-C; Ogundepo Vs Olumesan (2011) 18 NWLR (Pt. 278) 54 @ 69 E-G; 70 C-D & 72 D-F; and Ibama Vs S.P.D.C (Nig) Ltd. (2005) 17 NWLR (Pt. 954) 364 @ 379 C-E; 379-380 G-F & 384-385 D-B.
He submitted that where a contract is in writing the duty of the Court is to identify (i) whether a valid contract was created; (ii) the terms of the contract as expressed in the contract document; and (iii) to apply those terms in determining the rights of the parties; and in doing so, the Court must apply the clear contents of the contract and not what the partners understood it to mean. He referred to: Odutola Vs Papersack (Nig) Ltd. (2006) 18 NWLR (Pt.1012) 479 @ 492 H & 493-494 G-E, Amizu Vs Nzeribe (1989) 4 NWLR (Pt.118) 755 @ 771 G-N.
He submitted that Exhibit A, being in writing, cannot be varied except by another agreement in writing. He referred to:A.G. Rivers State Vs A.G. Akwa Ibom State (2011) 8 NWLR (Pt.1248) 31 @ 84-85 H-A. He submitted that having placed reliance on Exhibit A as a binding contract, the respondent is not at liberty to pick and choose which of its clauses are binding. He submitted that where a contract is subject to certain terms and conditions, the contract is not formed and not binding until those conditions are fulfilled. He referred to: Best (Nig) Ltd. Vs B.H. Nig. Ltd. (2011) 5 NWLR (Pt. 1239) 95 @ 126 C-D 116-117 G-A; Tsokwa Oil Marketing Co. Vs B.O.N. Ltd (supra); B.P.S. Construction & Emir. Co. Ltd Vs F.C.D.A. (2017) 10 NWLR (Pt. 1572) 1 @ 25 C-F & 48-49 F-E.
He submitted that Exhibit A was only expected to come into effect on the date when the last party signing signs. He submitted that at the time Exhibit A was handed over to the respondent, it had no signature and at that stage was a worthless document. On the proper approach to the interpretation of Exhibits A & B, he submitted that the two lower Courts ought to have adopted the guidelines set out in: BFI Group Vs B.P.E. (2012) 18 NWLR (Pt.1332) 209. He submitted that Exhibit B, which purportedly terminated the agreement between the parties referred to “the subsisting distribution agreement executed between MTN Nigeria Communication Limited and Corporate Communication Limited” effective 1st January 2011 and that Exhibit B did not make any reference to agreement number 381730 (i.e. Exhibit A).
……………………………J……………………………
Learned Senior Counsel submitted that the respondent sought declaratory reliefs and was therefore bound to prove its entitlement to the declaration notwithstanding the exclusion of the appellants pleading and evidence by the trial Court. He cited the cases of: Gonzee (Nig) Ltd. Vs NERDC (2005) 13 NWLR (Pt. 943) 634 @ 648 C-F; Nwokidu Vs Okanu (2010) 3 NWLR (Pt. 1181) 362, and several others in support of this submission. He submitted that Exhibit A does not have a commencement date since the date that would have been its commencement date never occurred. He submitted, relying on Amizu Vs Nzeribe (supra) and Harry Vs Pratt (1965) 1 W.L.R. 1025 @ 1026-1027, that an agreement which does not show its date of execution and the date of its coming into force, is invalid and unenforceable.
Learned Senior Counsel submitted that there was no evidence on record to support the finding of the lower Court that the appellant proceeded to do business with the Respondent on the basis of Exhibit A. He submitted that there is nothing in the record that discloses any benefit conferred on the appellant on the basis of signing Exhibit A by the respondent alone. He referred to BPS Construction & Engr. Co. Ltd. Vs FCDA (supra). He submitted that the lower court was wrong to rely on the case of PTA Electrical Pty Ltd. Vs Perseverance Exploration Pty Ltd. & Anor. (2007) VSCA 310 in holding that there was a binding contract between the parties notwithstanding the non-signature by the appellant, as the facts are distinguishable from this case.
On the whole, he urged the Court to resolve this issue in the appellant’s favour.
In response, learned senior counsel for the respondent submitted that throughout the trial and in the written addresses of counsel, the issue of the validity of Exhibit A was never in issue. The weight to be attached to it only arose from the issue raised suo motu by the trial Court in the course of writing the judgement. He referred to relevant portions of the record at pages 173-176 thereof. Learned counsel submitted that the appellant did not appeal against the various findings made by the learned trial Judge in the portions of the record just referred to. He submitted that the basis for the judgment of the lower Court was that the appellant not only made an offer but indeed drew up the agreement, articulated the terms and dispatched it to the respondent for its signature, without any input from the respondent, and upheld the finding of the trial Court that in the circumstances of this case, since the parties had transacted their business on the basis of Exhibit A, the fact that the appellant did not append its signature was of no moment.
He submitted that the Court below was right in holding that Exhibit A created an implied, binding and enforceable contract between the parties.
He submitted that parties are bound by the cases presented at the trial Court and that the appellant having admitted through its witness, DW1 under cross-examination, that the Distribution Agreement mentioned in Exhibit B was Exhibit A, cannot contend at the lower Court that Exhibit A was not the agreement relied upon. He submitted that the onus was on the appellant to produce a different agreement, which it failed to do. He submitted further that Exhibit A was very clear in two respects: (i) that the agreement supersedes all previous agreements and (ii) that it recognises all previous transactions between the parties. He submitted that the appellant did not challenge the respondent’s reliance on Exhibit A as the subsisting agreement between the parties at the Court below. He submitted that it is being raised before this Court as a new issue, without leave, and urged the Court to discountenance it. He referred to Registered Trustees A.O.N. Vs NAMA(2014) 8 NWLR (Pt.1408) 1 @ 37-38.
In reaction to the contention that the respondent did not lead evidence demonstrating the terms of Exhibit A, he referred to paragraphs 9, 10,11 and 12 of the Respondent’s witness’s deposition at pages 8 and 9 of the record. He submitted that the contents of Exhibit A form part of the Respondent’s pleading in the absence of any statute or rules prohibiting same. He referred to: Boothia Martime Inc. Vs Fareast Merchatile co. Ltd. (2003) FWLR (Pt. 50) 1713; (2001) 9 NWLR (Pt. 719) 572. He noted that Exhibit A was admitted in evidence without objection and both parties relied on it as the contract binding the parties. He submitted that in the circumstance the duty of the lower Court was to construe Exhibits A and B to determine whether Exhibit B rightly terminated Exhibit A.
He maintained that the evidence elicited from the appellant’s witness under cross-examination was duly pleaded by the respondent and therefore there was no need to amend its pleading, as contended for the appellant. He submitted that the authorities of Gagarau Vs Pashiri (supra) and SLEE Transport Ltd. Vs Oluwasegun (supra), cited learned senior counsel are not applicable to the facts of this case.
……………………………K……………………………
He submitted that the authority of Omega Bank (Nig) Plc Vs O.B.C. Ltd (supra), cited on behalf of the appellant, does not advance its case, but rather supports the finding of the lower Court to the effect that the Courts will strive to give effect to the intention of the parties by looking at the intent and not mere form. He maintained that the lower Court was right to hold that Exhibit A was the binding contract between the parties.
He submitted that in making its findings, the lower Court was right to restrict itself to the confines of the record as compiled by the appellant. He submitted that the argument on behalf of the appellant to the effect that Exhibit A had no commencement date, was not the appellant’s case at the trial Court. He also distinguished the facts of Bilante International Lt. Vs N.D.I.C (2011) 15 NWLR (Pt. 1270) 407, cited by learned senior counsel for the appellant from the facts of this case.
On the finding of the lower Court that the appellant continued to do business with the respondent on the basis of Exhibit A, which the appellant’s senior counsel contends is not supported by the record, he submitted that this was a finding made by the trial Court, which the appellant did not appeal against. He contended that nevertheless, the respondent duly pleaded the facts in paragraphs 3, 4, 5 and 10 of its amended Statement of Claim.
On the contention that there was no evidence of consideration passing from the respondent to the appellant, he referred to the operations manual at page 5 of Exhibit A, several clauses in Exhibit A and paragraph 3 (2) of Exhibit G and submitted that unless the respondent maintained the items listed in paragraph 17 of its Statement of Claim, it would not qualify to enter into the agreement of 2011, which is the subject of this appeal. He contended that the listed items were considered before the appellant issued Exhibit A and continued to deal with the respondent until the abrupt termination of the agreement. He submitted that the undisputed debt of N100,000,000.00 pleaded in paragraph 19 of the Statement of Claim automatically became due upon the said termination. He submitted that the respondent was also entitled to damages upon the failure of the appellant to respond to the respondent’s letter of 6th April 2011.
In reply, learned senior counsel for the appellant submitted that as far as previous Trade Partner agreements are concerned, the onus was on the respondent to produce them, as the appellant had nothing to assert since its pleadings had been struck out. He submitted that the Court is not entitled to speculate on what those agreements are. He submitted that the items pleaded in paragraph 17 of the Amended Statement of Claim can at best be construed as past consideration which cannot avail the respondent in respect of Exhibit A.
My Lords, although the parties have made copious submissions in respect of this issue, it must be borne in mind that this Court is not hearing the case afresh. There are concurrent findings of the two lower Courts. The position of this Court has always been to refrain from interfering with concurrent findings of fact unless it is shown that the findings are perverse. A finding is perverse
(i) Where it is not supported by evidence on the record;
(ii) Where it does not reflect a proper exercise of judicial discretion;
(iii) Where evidence has been wrongly admitted or rejected at the trial;
……………………………L……………………………
(iv) Where there has been an erroneous appraisal of facts leading to erroneous conclusion;
(v) Where the finding has been reached as a result of a wrong application of some principles of substantive law or procedure.
See: Ayeni Vs Adesina (2007) ALL FWLR (Pt. 370) 1451 @ 1457-1458; Woluchem Vs Gudi (1981) 5 SC 291 @ 326; Adegbite Vs Ogunfaolu, (1990) 4 NWLR (Pt.146) 578; Itu Vs The State (2016) 5 NWLR (Pt.1506) 443.
It is not the duty of this Court to embark on a fresh appraisal of the evidence merely to reach a different conclusion or to substitute its views for the views of the trial Court or the Court below.
It is also trite that an appeal is a continuation of the original action. The parties are therefore confined to their case as pleaded and presented at the Court of first instance. See: Ngige Vs Obi (2006) 14 NWLR (Pt.999) 1 @ 225; Adegoke Motors Vs Adesanya (1989) 3 NWLR (Pt. 109) 250 @ 266; Alhassan Vs Ishaku (2016) LPELR – 40083 (SC) @ 680.
It is relevant to note that all the exhibits tendered by the respondent in support of its pleadings, including Exhibits A & B, were admitted in evidence without objection from the appellant.
Learned senior counsel for the appellant contended that the respondent failed to lead evidence to demonstrate the terms of Exhibit A. With due respect to the learned silk, he appears to have overlooked the fact that the front loaded deposition on oath of a witness in support of his pleadings, constitutes his evidence in chief in the proceedings. Exhibit A was tendered and admitted without objection. In paragraphs 9, 10, 11, and 12 of the Statement of Claim, the respondent pleaded as follows:
9. Claimant further avers that the rights of the Defendants and the other duties of the Claimant is as provided for under the annexure to the said agreement with registration No. 381730.
10. The claimant was trading and carrying on business within the confines and limit of the content of the agreement with registration No. 381730 yet on the 1817 of March, 2011, the Defendant purportedly terminated the agreement between the Claimant and the Defendant in its letter of 18th March 2011.
11. The said letter though served on the Claimant’s Chief Executive Officer was not in compliance with the terms of agreement No. 381730 and addressed to another company Corporate Communications Limited.
The said letter of 18th March, 2011 is hereby pleaded.
12. The Claimant upon receipt of the letter immediately protested to the Defendant in its letter of 29th March, 2011. Claimant shall during trial rely on the said letter, same is hereby pleaded.
The terms of Exhibit A were therefore pleaded and Exhibit A was before the Court to support the pleading along with the written deposition of the witness. The evidence in chief of CW1, as per his written deposition made on 13/5/2011 and his evidence under cross-examination were summarised by the learned trial Judge at pages 148-158 of the record. It is therefore not correct, to contend that the terms of Exhibit A were not demonstrated before the Court. It must also be recalled that there were no pleadings on behalf of the appellant to counter the pleadings of the respondent. Furthermore, the authenticity of Exhibit A was never challenged by the appellant at the trial Court. The learned trial Judge noted this at page 176 of the record, reproduced earlier in this judgement. It was in the course of writing the judgment that His Lordship, on observing that Exhibit A was not signed by the appellant, adjourned the delivery of the judgment and invited the parties to address him on the evidential weight to be attached to it.
Exhibit A therefore stands as the contract between the parties. The appellant’s witness, DW1, confirmed under cross-examination that Exhibit A was relied upon by the appellant to issue Exhibit B. The learned trial Judge found this to be so when he held at page 176 of the record:
…. the defendant in alleging that its relationship with the claimant has been terminated relied on Exhibit A. See the letter of termination of the agreement sent to the claimant by the defendant Exhibit B. In this regards, in so far as the claimant and the defendant transacted their business in compliance with the terms of Exhibit A and the defendant relied on Exhibit A in terminating its relationship with the claimant, the fact that the defendant did not sign Exhibit A is of no moment. This is because equity looks at that which ought to be done.”
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The appellant did not appeal the finding of the trial Court that Exhibit B was issued to terminate Exhibit A. The appellant did not deny terminating its agreement with the respondent nor did it tender any other agreement to show that it was not Exhibit A that was terminated by Exhibit B. It did so by the written deposition of CW1 adopted and relied upon at the trial and the exhibits tendered. The law is that a party seeking declaratory reliefs must succeed on the strength of his own case and not on the weakness of the defence, if any. He has an obligation to prove his claims to the satisfaction of the Court notwithstanding any admission made by the defendant. This is because the grant of a declaratory relief is discretionary. See:Okoye Vs Nwankwo (2014) LPELR – 23172 (SC) @ 71-72 D-B (2014 15 NWLR (Pt.1429) 93, Kwajaffa & Ors. Vs B.O.N. Ltd. (2004) 13 NWLR (Pt 889) 146; Emenike Vs P.D.P (2012) 12 NWLR (Pt.1315).
The respondent had done what was required by tendering evidence in support of its claims. It had pleaded and led evidence to prove that Exhibit A was terminated by Exhibit B. The admission of this fact by the appellant’s witness bolstered the respondent’s claim. It was entitled to rely on the admission as additional support for its case.
I am of the considered view that as the authenticity of Exhibit A was never in issue before the trial Court, it cannot be made an issue before this Court.
The main reason why the appellant challenged the findings of the two Courts with regard to Exhibit A, is that it was one of the terms of agreement that it would take effect from the date the last person signs and that since it did not sign the document after it was signed by the respondent, the document was inadmissible and could not be relied upon as a valid contract between the parties. The reasoning of the learned trial Judge was that Exhibit A was prepared by the appellant without any input from the respondent. It was sent to the respondent for its signature signifying its acceptance. The respondent complied. The Court held that the appellant, for reasons best known to it, did not sign the document but continued carrying on business with the respondent in accordance with its terms. It held that the appellant would not be allowed to take advantage of its own wrong doing by deliberately refusing to sign the document.
The Court below dealt with this issue extensively at pages 323-333 of the record and agreed with the Court below that in the circumstances of this case, the appellant ought not to be allowed to take advantage of its wrong doing by deliberately refusing to sign Exhibit A.
The question to be asked is whether these findings are perverse? I think not. Both the Court below and the trial Court reiterated severally that the appellant did not challenge the authenticity of Exhibit A and no questions were put to CW1 under cross-examination to challenge same.
I am of the considered view that what is critical in this case, as held by the learned trial Judge, is that Exhibit A was prepared solely by the appellant. It was forwarded to the respondent for its signature, signifying its assent to the terms stated therein. The respondent duly signed through its Chief executive Officer and returned it to the appellant. The appellant did not sign and did not give any indication to the respondent that there was any change to their existing position. The last paragraph of Exhibit B states:
“further note that all commissions and discounts, if any due to you under the agreement shall be computed and paid in due course.”
Contrary to the contention of learned senior counsel for the appellant, the portion of Exhibit B referred to supports the finding of the two lower Courts that the appellant continued to do business with the respondent despite not signing Exhibit A. In paragraphs 3, 4, 5 and 10 of the statement of claim, the respondent pleaded as follows:
“3. The Claimant trades in and particularly partner with the Defendant in the Defendant’s trade and business operations in Nigeria.
4. The Defendant is a Communication Limited Liability company registered in Nigeria with Corporate office in Lagos and other offices spread all over Nigeria including Port Harcourt Rivers State and carries out its transactions through its Trade and Sub Trade Partners.
5. The Claimant’s business with the Defendant started sometime in 2005, wherein the Claimant by its various agreements with the Defendant is one of the Defendant’s Trade Partners and traded with the Defendant in line with the said various agreements.
10. The Claimant was trading and carrying on business within the confines and limit of the content of the agreement with registration No. 381730 yet on the 18th of March, 2011, the Defendant purportedly terminated the agreement between the Claimant and the Defendant in its letter of 18th March, 2011. (Underlining mine)
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These averments and the evidence in respect thereof in the written deposition of CW1 stand unchallenged and uncontradicted.
Section 169 of the Evidence Act provides:
“When one person has either by virtue of an existing Court judgement, deed or agreement or by his declaration, act or omission caused or permitted another person to believe a thing to be true and to act upon such belief, neither he nor his representatives in interest shall be allowed, in any proceeding between himself and such person or such person’s representative in interest, to deny the truth of that thing.”
This is the purport of the foreign authorities relied upon by the lower Court in the Australian cases of PRA Electrical Pty Ltd. Vs Perseverance Exploration Pty Ltd. & Anor. (2007) VSCA (Victorian Supreme Court of Appeal) 310 and Wayne Edward John Street Vs Fantastic Holdings Ltd. 2011 NSWSC (New South Wales Supreme Court) 1097. Although of persuasive authority only, they were appropriately relied upon in this case.
In Street Vs Fantastic Holdings Ltd. (supra), the respondent sought to enforce an agreement for a lease which it had signed and returned to the landlord even though the landlord had not signed. The respondent’s lease was coming to an end. There were negotiations in respect of the renewal. All the essential terms of the agreement had been agreed upon. The landlord sent the formal lease agreement containing all the terms to the tenant to sign, which it did. A second lease agreement had to be sent because the earlier one was misplaced. The respondent signed and returned it. Even though the landlord did not sign, the tenant continued to occupy the premises after the expiration of the previous tenancy and paid rent in accordance with the new lease agreement. The landlord sought to rely on the fact that the agreement was only intended to come into force after final execution by both parties. The Court held, inter alia :
” ….having completed the negotiation stage, the parties were of “one mind” as to the terms of the lease with nothing remaining outstanding other than formal execution. In sending the tenant the lease document, the landlord was making a final offer in a form capable of acceptance, leaving nothing further for negotiation.
Therefore, signing the agreement would, objectively be regarded as a mere formality.”
In the instant case, the offer was being made by the appellant. The respondent accepted the offer by appending its signature thereto. At that stage the negotiation aspect of the contract was complete, particularly as by signing, the respondent had agreed to all the terms and conditions therein.
The recent decision of this Court in BPS Construction and Enqineerinq Co. Ltd. Vs F.C.D.A (2017) 10 NWLR (Pt. 1572), relied upon by learned counsel for the appellant, is distinguishable from the facts of this case as the subject matter involved a Memorandum of Understanding wherein the parties agreed that it was subject to the signing of formal agreement on terms to be mutually agreed between the parties. In others words, the MOU represented a preliminary understanding between the parties with the intention of subsequently entering into a formal contract.
In the instant case, as held in Alfotrin Ltd. Vs A.G. Federation & ors. (1996) 9 NWLR (Pt.475) 634 @ 656 H, there was a concluded bargain which had settled all the essential conditions necessary to be settled and left no vital term or condition unsettled. As observed earlier, the appellant did not deny the fact that it continued trading and carrying on business with the respondent in accordance with Exhibit A.
I agree entirely with the two lower Courts, that the appellant could not be allowed, by deliberately withholding its signature, to take advantage of its wrongdoing and use it as a weapon against the respondent. See: Adedeji Vs N.B.N Ltd. (1989) 1 NWLR (Pt. 96) 212 @ 226-227 E-A, where it was held, inter alia that it is morally despicable for a person who has benefited from an agreement to turn around and say that the agreement is null and void, or unenforceable, as contended in this case.
I am not persuaded that the concurrent findings of the two lower Courts in this regard are perverse. Lower Court rightly affirmed the finding of the trial Court that Exhibit A was a binding contract between the parties and that in issuing Exhibit B it failed to comply with clause 16.2 of Exhibit A, which required it to give the respondent 60 days written notice before terminating the agreement. This issue is accordingly resolved against the appellant.
ISSUE (C)
Whether the affirmation of the award of general damages against the appellant and the awards of costs made against the appellant is justified?
Learned Senior Counsel for the appellant submitted that the evidence on record does not support the basis for granting the reliefs by the lower Court. He contended that the losses allegedly suffered by the respondent were not shown to have arisen from Exhibit A. He contended further that there was no pleading or evidence led to show how much was expended on SIM Kit reactivation as distinct from other repaid bonuses pleaded in paragraph 19 of the Statement of Claim. He submitted that the alleged admission by DW1 that the respondent was entitled to N100 million for SIM Kit reactivation could not be relied upon, as the evidence of DW1 was expunged and there was no statement of defence before the Court.
He submitted further that by paragraph 13 of its Statement of Claim, the respondent pleaded that when it placed an order for the appellant’s products on 4th April 2011, the appellant rejected it on account of the termination letter, Exhibit B. He argued that the respondent was already aware of the termination before it placed the order and that it failed to plead the specific items ordered their quantity and value. He submitted that the two lower Courts relied on speculation and extraneous matters in making the award. He submitted that notwithstanding the concurrent findings, this Court would interfere with the award if the record reveals that they are not justified. He referred to: U.B.N. Plc Vs Ajabule (2011) 18 NWLR (Pt.1278) 152 @ 181 D-F; 178 B-D, Merchantile Bank Vs Adalma (1990) 5 NWLR (Pt.153) 747 @ 767; Shell B. P. Co. Ltd. Vs Jammal Engr. (Nig) Ltd. (1974) ALL NLR (Vol.1) 489.
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In response, learned senior counsel for the respondent submitted that in making the awards, the trial Court relied on clause 5 and several sub-clauses of Exhibit A (page 194 lines 19-21 of the records), Exhibit G2 at page 196 lines 7-10, the undisputed evidence of CW1 and the long term business relationship between the parties. He submitted that the Court considered (i) the amount of money the respondent was entitled to for SIM Card activation; (ii) the amount of money it would have earned if the order placed by the respondent for the appellant’s products had been honoured; and (iii) the products supplied and what the respondent would have earned if the contract had been carried out as provided in Exhibit A. He submitted that the lower Court was right in affirming the awards.
He submitted that the findings of the lower Court and the trial Court were in line with the respondent’s pleading in paragraphs 5, 6, 9, 10, 13,14,15,16, 17,18,19,20, 21 and 21 of the statement of claim, which stands unchallenged, and CW1’s statement on oath at pages 8-11 of the record. He reiterated his submission made under issue 1 in respect of the evidence elicited from DW1 under cross-examination. He also submitted that the claim for damages was not challenged by way of cross-examination nor by the statement of defence, since the statement of defence was struck out.
He submitted that where a claim is unchallenged by way of cross-examination, only minimal proof would be required to prove it. He referred to Amadi Vs Nwosu (1992) 5 NWLR (Pt.241) 275; NItel Ltd. Vs Ikpi (2007) 8 NWLR (Pt. 1035) 96 @ 109-110. He reiterated the fact that DW1 admitted the respondent’s entitlement to the damages claimed under cross-examination. He submitted that the onus was on the appellant to challenge the evidence of the respondent by way of vigorous cross-examination. He maintained that the decision of the lower Court was based on relevant facts, which were undisputed. He submitted that facts admitted require no further proof. He relied on Section 112 (2) of the Evidence Act and submitted further that an admission by a party against his interest is admissible against him. He relied on: Kamalu Vs Umunna (1997) 5 NWLR (Pt. 505) 321 @ 337. He urged the Court to resolve the issue in the respondent’s favour.
The respondent claim in paragraph 21 (c) of its statement of claim is as follows:
“N500,000,000 as general damages for the unwarranted and abrupt cancellation of claimant’s orders as a result of the wrongful, invalid or oppressive conduct of the Defendant against the claimant.”
The object of an award of general damages is to compensate the plaintiff, as far as money can do so, for the damages, loss or injury he has suffered. The guiding principle is restitution in integrum.
It envisages that a party which has been damnified by the act which is called in question must be put in the position he would have been if he had not suffered the wrong which he is now being compensated for. In other words, the loss inevitably and unavoidably flowing from the breach. See: Chief S.I. Agu Vs General Oil Ltd. (2015) LPELR -24613 (SC) @ 31-32 G-B; NEPA Vs R.O. Alli & Anor. (1992) 10 SCNJ 34; Ijebu-Ode L.G. Vs Adedeji Balogun & Co., Ltd (1991) 1 NWLR (Pt.166) 136.
In Ijebu-Ode Vs L.G. Adedeji Balogun & Co. Ltd. (supra), it was held, per Karibi-Whyte, JSC at 158 F-G:
“In cases of breach of contract, assessment of damages is calculated on the loss sustained by the injured party which loss was either in the contemplation of the contract or is an unavoidable consequence of the breach.”
See also: Shell B.P. Vs Jammal Engineering Ltd. (1974) 4 SC 33, 1 ALL NLR (Pt.1) 542.
It is also trite that an award of damages is within the discretionary powers of the Court. The exercise of such discretion must however be based on the evidence before the Court. See: British Airways Vs Atoyebi (2014) 13 NWLR (Pt. 1424) 253; Hamza Vs Kure (2010) 10 NWLR (Pt. 1203) 630; Okoko Vs Dakolo (2006) 14 NWLR (Pt. 1000) 401.
The Court below found and held, in affirmation the judgment of the lower Court, that the learned trial Judge took into consideration the fact that the respondent pleaded and testified that it would have earned N100 million from the SIM Kit activation exercise and from other repaid activation bonuses if the appellant had not abruptly terminated the contract and that His Lordship also took into consideration all the immediate losses which were reasonably within the contemplation of the parties at the time of the contract.
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The learned trial Judge considered clause 5 Sub-clauses 5.1.1, 5.1.4, 5.1.5, 5.1.8, 5.1.9, 5.1.10, 5.1.13 5.1.16, 5.1.29, 5.1.32 and 5.1.33 of Exhibit A, which the respondent was required to comply with and which includes the provision of distribution outlets, the provision of all necessary human and other resources required to effectively, sell, supply and or distribute the appellant’s products and services; to make investments in structural facilities, business tools and system requirements which include (a) computers with internet access, (b) credit/debit card scanners for electronic payment;
(c) printers for production of sales orders, etc. These requirements are no doubt capital intensive.
His Lordship noted that these items and those set out in Exhibit G2 were required to be supplied/complied with and had to be in place for the effective running of the appellant’s business. The respondent pleaded the expenses incurred in paragraph 18 of its statement of claim and supported it with the witness statement of CW1, which was his evidence in chief. The learned trial Judge observed that CW1 was not cross-examined to establish that the respondent did not comply with clause 5 and in particular the sub-clauses referred to.
The respondent’s claim for damages was uncontradicted. Where the claimant pleads and gives evidence in support of his claim for damages and his evidence is uncontradicted, the trial Court is bound to accept the evidence unless there is something inherent in the evidence which disproves it. See: Ijebu-Ode L.G. Vs Adedeji Balogun & Co. Ltd. (supra) at 159 A-B; 165 C-D; Incar Nig. Ltd. Vs Adegboye (1985) 2 NWLR (Pt. 8) 453 @ 461-462 B-C.
The Court below found no reason to disturb the exercise of discretion by the learned trial Judge. I am equally not persuaded to do so. The respondent’s evidence on the claim for general damages was uncontradicted. Indeed the appellant’s witness admitted the respondent’s entitlement to N100 million for SIM Kit activation, thereby confirming the respondent’s natural loss arising from breach of the contract between them.
This issue is accordingly resolved against the appellant.
In conclusion, I find no merit in the appeal. It is hereby dismissed. The judgement of the lower Court is affirmed. I make no order for costs.
IBRAHIM TANKO MUHAMMAD, Ag C.J.N.: I have had the opportunity of reading before now, a draft copy of the judgment just delivered by my learned brother, Kekere-Ekun, JSC. I agree with his reasoning and conclusion that the appeal lacks merit and should be dismissed. I too dismiss the appeal.
MARY UKAEGO PETER-ODILI, J.S.C.: I agree with the judgment just delivered by my learned brother, Kudirat M. O. Kekere-Ekun, JSC and to underscore the support in the reasonings from which the decision came about, I shall make some remarks.
This appeal is against the judgment of the Court of Appeal, Port Harcourt Division or Court below, or Lower Court, Coram: M. L. Garba, Orji – Abadua, B. G. Sanga JJCA dated 21st July, 2014 in which the Court below dismissed the appeal and affirmed the judgment of the trial Court Per S. C. Amadi J. which judgment was in favour of the respondent.
On the 19th day of December, 2018 date of hearing, learned Senior Advocate, D. C. Denwigwe SAN adopted the Amended brief of argument filed on 19/1/2018 and deemed filed on 28/11/18 and the reply brief filed on 19/3/18 and deemed filed on 28/11/18 and List of Additional Authorities filed on 19/12/18. The appellant formulated four issues for determination which are as follows:-
(a) Whether the Court of Appeal was right when it acted on extraneous matters including the evidence of the DW1 at the trial in reaching its decision to affirm the judgment of the trial Court? (Grounds 6 and 11).
(b) Whether the Court of Appeal was right in holding that the document which was admitted in evidence at the trial as Exhibit “A” created an implied, binding and enforceable contract between the appellant and the respondent? (Grounds 1, 5, 7, 8, 9 and 10).
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(c) Whether the affirmation of the award of general damage made to the respondent against the appellant and the awards of costs made against the appellant is justified? (Grounds 2, 3 and 4).
(d) Whether the learned Justices of the Court of Appeal was right when they held that the appeal lacks merit? (Ground 12).
Learned counsel for the respondent, Nyengierefaka Joshua Esq., adopted the brief settled by D. O. Ezaga SAN and filed on 2/3/18. He adopted the issues as nominated by the appellant.
I shall make use of the issues as identified by the two sides and together.
(1) Whether the Court of Appeal acted on extraneous matters in reaching its decision affirming the decision of the trial Court? (Grounds 6 and 11).
(2) Whether the Court of Appeal was right in holding that the document which was admitted in evidence without objection as Exhibit “A” by the trial Court created an implied, binding and enforceable contract between the appellant and the respondent? (Grounds 1, 5, 7, 8, 9 and 10).
(3) Whether upon the finding that the appellant’s termination of Exhibit “A” via Exhibit “B” was wrongful, the Court of Appeal rightly affirm the award of general damages and cost against the appellant in favour of the respondent? (Grounds 2, 3 and 4).
(4) Whether the learned Justices of the Court of Appeal was right when they held that the appeal lacks merit? (Ground 2).
D. C. Denwigwe SAN, for the appellant contended that neither the statement of Defence, the evidence of the DWI, the Claimant’s Reply to the Statement of Defence, the Claimant’s Further deposition on oath nor evidence extracted from the DW1Â outside the statement of claim are admissible for any valid use in the judgment of the trial Court in this case which the Court below should not have affirmed. He cited U.T.B. v Ozoemena (2007) 3 NWLR (Pt.1033) 448 at 471 & 491, Onojobi v Olanipekun (1985) 2 SC 19; Ike v Ugboaja (1993) 6 NWLR (Pt.201) 539; A. G. Leventis (Nig.) Plc v Akpu (2007) 17 NWLR (Pt.1063) 416 at 440; Military Governor, Lagos State v Adeyiga (2012) 5 NWLR (pt. 1293) 291 at 319-320.
He further submitted that the respondent cannot use the evidence extracted from cross-examination during the proceedings on any matter not pleaded but which if accepted could decide any issue in the dispute between parties without first amending the pleadings to plead the facts on which such evidence is led. He referred to Gagarau v Pashiri (2006) 1 NWLR (Pt. 962) 521 at 540; Slee Transport Ltd v Oluwasegun (1973) 3 ECSLR (Pt.11) 1176.
That when a contract between the parties is said to be in writing as the respondent asserts, the duty of the Court is limited to interpreting that contract document holistically so as to identify whether a valid contract was created, the terms of the contract as expressed in the contract documents and to apply those terms in determining the rights of the parties. That the said document, Exhibit A, subject matter of this appeal Is in writing and cannot be varied except by another agreement also in writing. He cited Tsokwa Oil Marketing Co., v B.O.N. Ltd (2002) 11 NWLR (Pt.777) 163 at 196; Akpan v Otong (1996) 12 SCNJ 213 at 225; Ajagbe v Idowu (2011) 17 NWLR (Pt.1276) 422 at 4434; Odutola v Paparsack (Nig.) Ltd (2006) 18 NWLR (Pt.1012) 470 at 492, 493-494; Amizu v Nzeribe (1986) 4 NWLR (Pt.118) 755 at 771; A. G. Rivers State v A. G. Akwa Ibom State (2011) 8 NWLR (Pt. 1248) 31 at 84-85 etc.
Learned Senior Counsel for the appellant contended that the contract/agreement which Exhibit “B” terminated is expressly set out on Exhibit “B”. He relied on Gonzee (Nig.) Ltd v NERDC (2005) 13 NWLR (Pt. 943) 634 at 648; Nwokidu v Okanu (2010) 3 NWLR (Pt.1181) 362; Fabunmi v Agbe (1985) 1 NWLR (Pt.2) 299, Bello v Eweka (1981) 1 SC 101 etc.
For the appellant, it was advanced that the two Courts below relied on extraneous and unpleaded matter to grant reliefs to the respondent and so calling for the intervention of the Supreme Court on the concurrent award made by the two Courts below as they were not justified by the facts and circumstances. He cited U.B.N. Plc v Ajabule (2011) 18 NWLR (Pt. 1278) 152 at 181; Merchantile Bank v Adalma (1999) 5 NWLR (Pt.153) 747 at 767; Shell B.P. Co. Ltd v Jammal Engr. Ltd. (1974) All NLR (Vol.1) 489.
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In response, learned counsel for the respondent submitted that at the trial the appellant and respondent had no dispute as far as the agreement Exhibit A was concerned and so the decision by the trial Court on whether Exhibit A was signed by the respondent without the signature of the appellant had value which issue it resolved in favour of the respondent and the specific findings of that Court not appealed against at the lower Court are deemed accepted as correct and cannot now be raised at this level as it remained valid and binding on all the parties for all times.
He cited Anayanwu v Ogunewe (2014) All FWLR (Pt. 738) 1012 at 1037; Nwankwo v Yar`Adua (2010) All FWLR (Pt. 534) 1; L.A. & A.C. Ltd v U.B.A. Plc (2014) All FWLR (Pt. 739) 1080 at 1094.
That it is not correct that answers elicited under cross-examination by the respondent become respondent’s evidence and are valid. He cited Adeosun v Government, Ekiti State (2012) 4 NWLR (Pt.1291) 581 at 600; Gaji v Paye (2003) 8 NWLR (Pt. 823) 583 at 611; Mobil Oil (Nigeria) Ltd. v National Oil & Chemical Marketing Co. Ltd (2000) 9 NWLR (Pt. 671) 44 at 52.
Learned counsel for the respondent contended that the issues raised by the appellant at the Court of Appeal only bordered on the validity of Exhibit A and the award of damages to the tune of N250,000,000.00 together with cost and these are all that are binding on the parties on appeal at this stage and so the appellant cannot bring its issues outside those attended to at the Court below. He cited Udokpo v Archibong (2013) All FWLR (Pt. 659) 1144 at 1169, Adegoke Motors Ltd v Adesanya (1989) 5 SC 113, Akpene v Barclays Bank (1977) 1 SC 57; Osakwe v Governor of Imo State (1991) 5 NWLR (Pt.191) 318 at 333-334. Anekwe v Nweke (2014) All FWLR (Pt.739) 1154 at 1175.
That the Lower Courts’ decisions were based on relevant facts before them which were uncontradicted by the appellant and so being facts admitted needed no further proof by virtue of Section 112 (2) of the Evidence Act and an admission by a party against his interest is admissible against him. That the sound reasoning of facts having been concurrently postulated and accepted by the two lower Courts, the Supreme Court cannot disturb as there is no special reason to do so. He cited Kamalu v Umunna (1997) 5 NWLR (Pt.505) 321 at 337; Ibuluya v Dikibo (2010) 18 NWLR (Pt.1225) 627 at 651.
That stance of the appellant briefly is that the two Courts below relied on and applied facts not pleaded in reaching their decisions on the status of Exhibit “A” as a binding contract agreement and the same situation of unpleaded facts in making the awards complained of.
Countering the position of the appellant, the respondent is of the view that all facts and evidence relied upon by the two Courts were uncontradicted and not denied as the evaluation and conclusions by the two Courts were on the merit of what was before them.
It needs be brought out that at the trial the parties had no dispute as far as the Agreement of 2011, Exhibit “A” was concerned as what was being contested at that stage of trial was whether Exhibit ‘A’ was properly terminated. It turned out that in the course of entering its judgment, that Court of first instance brought up the issue suo motu as to whether Exhibit ‘A’ signed by the respondent without the signature of the appellant had value and answered the question in favour of the respondent that it had value and that became the crux of the appeal of the appellant at the Court of Appeal. At that appellate level, the respondent drew the Court below’s attention to the specific findings of the trial Court not appealed against by the appellant, which are as follows:-
“DW1 under cross-examination admitted that the agreement the appellant relied upon to issue Exhibit “B” was Exhibit “A”. I am of the firm view that the evidence of DW1 supports the Claimant’s case. This is because DW1 stated that Exhibit “A” was duly terminated in accordance with Clause 16.2 of Exhibit “A”. In effect therefore, in terminating Exhibit “A”, the defendant relied on Clause 16.2 thereof.”
The excerpts above of the trial Court findings and conclusions were not appealed against at the lower Court which throws up the settled law that where there is no appeal against specific findings of fact made at the trial Court, those findings remain for all time unassailable and deemed accepted as representing the true state of affairs. It therefore becomes futile trying to smuggle those same issues at another level of appeal since they have in effect been conceded by the party against whom they were decided and remains valid and binding on all parties forever. I rely on Anyanwu v Ogunewe (2014) All FWLR (Pt. 738) 1012 at 1037; Nwankwo v Yar’Adua (2010) All FWLR (Pt.534) 1; L.A. & A.C. Ltd v U.B.A. Plc (2014) All FWLR (Pt.739) 1080 at 1094.
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The appellant had urged the Court to expunge the facts admitted by the witness of the appellant under cross-examination as they were not pleaded. On this point, I agree with learned counsel for the respondent that that argument just cannot fly as cross-examination answers are not usually pleaded since a party cannot be in the know or anticipate the mind of the other as to predicting what would be asked in cross-examination therefore if as happened in this case the amount claimed by the respondent and admitted by the appellant’s witness under cross-examination tallied with each other, there is no need for further pleading and it is to the advantage of the respondent and nothing stops the Court utilising it as it is as valid as examination in chief. See Adeosun v Governor of Ekiti State (2012) 4 NWLR (Pt.1291) 581 at 600; Gaji v Paye (2003) 8 NWLR (Pt.823) 583 at 611; Mobil Oil (Nig.) Ltd v National Oil & Chemical Marketing Co Ltd (2000) a NWLR (Pt.671) 44 at 52.
The grouse of the appellant as I can see, seems based on the reasons on which the appeal Court came to its decision as the appellant is not happy with the Court’s utilization of the evidence of DW1 in justifying the award made against the appellant.
This makes one remind himself that what an appellate Court is concerned with should at all times be the rightness or wrongness of the decision and not necessarily the reasons for the conclusion or decision. This is so because, once the decision is right it would be upheld at the higher level irrespective of the fact that a wrong reason was given for that decision. See Dickson Arisa v The State (1988) 7 SCNJ 760 at 84; Akpene v Barclays Bank (1977) 1 SC 57; Osakwe v Governor of Imo State (1991) 5 NWLR (Pt.191) 318 at 333-334; Anekwe v Nweke (2014) All FWLR (Pt.739) 1154 at 1175; Amadi v Nwosu (1992) 5 NWLR (Pt. 241) 275;Nitel Ltd v Ikpi (2007) 8 NWLR (Pt.1035) 96 at 109 -110.
Overall, there is no difficulty in agreeing with the decision of the Court below which affirmed the decision of the High Court with regard to the contractual relationship between the parties for the following reasons:-
(1) There is consideration;
(2) The fundamental terms are certain;
(3) There is acceptance by due signature of respondent;
(4) Intention to create legal relationship and offer based on the sending of the agreement for respondent’s signature by the appellant who drafted same;
(5) The appellant and respondent started adhering to the terms of Exhibit A;
(6) The appellant used the services under Exhibit “A” by the fact that the services rendered previous agreements were recognised by Exhibit “A” when it stated in Clause 34 (b) that:
“Notwithstanding Clause 34 (a) which terminated the previous agreement, the Trade Partner shall still be entitled to all commissions and discounts earned prior to the termination referred to in 34 (a).”
The above were concurrently accepted by the two Courts below and no reason has been brought before this Court in persuasion to disturb those findings and a long line of cases is on record that when such a situation occurs, this Court as any other appellate Court should not disturb such findings. See Ibuluya v Dikibo (2010) 18 NWLR (Pt.1225) 627 at 650 and 651.
In the final analysis, this appeal lacks merit and in line with the well rendered lead ,judgment I too dismiss it as I abide by the consequential orders made.
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AMIRU SANUSI, J.S.C.: I had the privilege of perusing in advance the well-researched judgment prepared by my learned brother Kekere-Ekun,JSC just delivered. His Lordship had adequately and painstakingly addressed all the issues canvassed by learned counsel to the parties in this appeal.
While agreeing with the reason and conclusion reached in his lead judgment that this appeal lacks substance, I shall also dismiss the appeal for want of merit. I decline to make any order on costs.
EJEMBI EKO, J.S.C.: I read in draft the judgment just delivered in this appeal by my learned brother, K.M.O. Kekere-Ekun, JSC. I agree that there is not substance in this appeal.
The agreement, Exhibit A, allegedly terminated by the Appellant by the letter Exhibit B, was drafted by the Appellant. Exhibit A was drafted or drawn by the Appellant, wherein the Appellant articulated the terms of the agreement. Exhibit A was then sent to the Respondent for its signature. The Respondent did “execute” the agreement by signing the same and then returned it to the Appellant to execute.
The Appellant failed to append its signature. Exhibit A has no commencement date. There is a clause therein that the agreement took its effect from the date the Appellant appended its signature thereto.
The totality of the evidence, including the admission against interest made by the DW.1, suggested that the parties transacted business on the basis of Exhibit A. Exhibit B, which purportedly invoked the termination clause in Exhibit A, to terminate Exhibit A clearly and strongly suggest that the Appellant, like the Respondent, regarded Exhibit A as a binding contract. Exhibit A was tendered and admitted in Evidence without objection.
Though not mutually executed Exhibit A was regarded by the parties as their binding contract. Equity acts in personam and therefore takes as done that which ought to be done, if from the conduct of the parties such inference can be drawn. In the instant case, such facts abound on which the two Courts below concurrently found that the parties intended to be bound by Exhibit A and that Exhibit A would be the basis of their mutual transaction, whether or not the document was formally executed. Again, Equity acting in personam would look at the intent of the parties and the substance and not at the form. In the instant case, insistence on compliance with all formalities of executing a written agreement will be oppressive to the Respondent. The Appellant, in the Court of Justice, will not be allowed to take advantage of the Respondent on his own iniquity by his ingenious booby trap by which he deliberately withheld his signature while at the same time it made the Respondent go with the impression that the relationship is governed or regulated by Exhibit A. Section 169 of the Evidence Act, 2011, which codified the principle of estoppel by conduct, will not countenance the present posture of the Appellant and allow it resile out of Exhibit A. For clarity Section 169 of the Evidence Act is hereinbelow reproduced:
169. When one person has, either by virtue of an existing Court judgment, deed or agreement, or by his declaration, act or omission, intentionally caused or permitted another person to believe a thing to be true and to act upon such belief, neither he nor his representative in interest shall be allowed, in any proceeding between himself and such person or such person’s representative in interest, to deny the truth of that thing.
The facts on which the evidence of the CW.1 was predicated were not traversed. His deposition on oath was also not traversed. These indubitable facts, supported by the evidence of DW.1 under cross-examination, amply support the decision of trial Court affirmed by the lower Court. The damages awarded are supported by available legal evidence. The concurrent findings of fact, as they relate to the award of damages, are unassailable.
I find no basis to disturb the judgment of the lower Court. Accordingly, I join my learned brother K.M.O. Kekere-Ekun, JSC, and enter judgment dismissing the appeal in its entirety in favour of the Respondent.
Appeal dismissed.
Appearances
D.C. Denwigwe, SAN with him, J.O. Asoluka, Esq. and C.U. Onyeukwu, Esq.For Appellant
AND
Nyengierefaka Joshua, Esq.For Respondent
Appearances
AL-MASMOON SECURITY LTD v. PIPELINES & MARKETING PRODUCTS CO. LTD
On Friday, January 28, 2022
SC.755/2015Before 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
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN, J.S.C. (Delivering the Leading Judgment): The appellant and the respondent herein, entered into a contract on 1/10/2007 wherein the appellant was contracted to provide security for the respondent’s headquarters at NNPC Towers Abuja, Kaduna Depot, Zaria Depot and Zaria Pump stations respectively. The respondent however terminated the contract on 31/01/2014. The appellant was aggrieved and instituted an action before the High Court of the Federal Capital Territory (FCT) seeking the following reliefs: “1.
An order directing the defendant not to terminate the security agreement unless in accordance to the terms of agreement dated 1st day of October, 2007. 2. A perpetual order restraining the defendant from acting on its letter of termination of the security contract for the plaintiff to provide security guards at the defendant’s Kaduna Depot and Zaria Pumping station. 3. An order that the purported letter of termination of contract of security between the parties amounts to a breach of contract. 4.
The plaintiff claims the sum of Twenty Million Naira (N20,000,000.00) from the defendant for breach of contract. 5. The cost of this suit.”
The respondent, upon receipt of the Writ of Summons, Statement of Claim and accompanying documents, filed a notice of preliminary objection challenging the competence of the suit for failure of the appellant to serve one month’s pre-action notice, contrary to Section 12(2) of the Nigerian National Petroleum Corporation (NNPC) Act Cap. N.23, Laws of the Federation of Nigeria (LFN) 2004. In a considered ruling delivered on 5/3/2014, the preliminary objection was overruled on the ground that the Pipelines and Products Marketing Co.
Ltd. is not a wholly owned subsidiary of NNPC and therefore does not fall within the purview of Section 12(2) of the NNPC Act requiring pre-action notice. Consequently, the Court assumed jurisdiction.
The respondent, being dissatisfied with the ruling appealed to the Court below. Allowing the appeal, the Court held, inter alia: Having regard to the fact that the appellant is a corporate subsidiary of NNPC, as can be discerned by the respondent’s Statement of Claim, the respondent’s witness statement on oath, the agreement between the parties and the respondent and the affidavit in support of the appellant’s notice of preliminary objection, the appellant is entitled to be served a pre-action notice as provided for by Section 12(2) of the NNPC Act.
By the failure of the respondent to serve the appellant the prescribed pre-action notice before filing its suit, a pre-condition to the competence of the action has not been complied with. The respondent’s action is therefore premature and it is liable to be struck out …Consequent, the respondent’s action with suit No, FCT/HC/CV/160/2014 is hereby struck out for lack of jurisdiction.”
It is the appellant who is now aggrieved. Its notice of appeal filed on 31/10/2015 can be found at page 160-163 of the record. It contains 4 grounds of appeal.
At the hearing of the appeal on 2nd November 2021, E.J. ESENE ESQ adopted and relied on the Appellant’s brief filed on 23/12/2015 and its Reply brief filed on 4/8/2016, both deemed filed on 2/11/2021, in urging the Court to allow the appeal. M.E. ORU ESQ. drew the Court’s attention to Notice of Preliminary Objection filed on 2/3/2016 and deemed filed on 8/2/2017, which is also incorporated in the Respondent’s brief filed on 29/2/2016 and deemed filed on 8/2/2017.
He adopted and relied on the preliminary objection in urging the Court to strike out the appeal, or alternatively, to dismiss the appeal on the merits based on the arguments therein against the appeal.
The Preliminary objection challenges the hearing of the entire appeal. It must therefore be considered and resolved before delving into the merit of the appeal, should the need arise. The reason is not far-fetched. In the event that the objection has merit, the appeal will be terminated in limine. The grounds of the objection are as follows: 1.
The Notice of Appeal filed on 31st August, 2015 was not signed by any of the solicitors named therein but signed for the solicitor by a person who neither indicated his name and designation nor known to be a legal practitioner contrary to the provisions of Sections 2(1) and 24 of the Legal Practitioner’s Act, Cap. L11 LFN 2004. 2. The Notice of Appeal as shown at pages 160-163 of the Record is not stamped and sealed with the stamp of the Legal Practitioner who signed it contrary to Rule 10(1) of the Rules of Professional Conduct, 2007 made pursuant to the Legal Practitioners Act Cap.
L11 LFN 2004. 3. All the grounds of appeal are grounds of mixed law and facts and leave of Court was not sought and obtained before filing, thus rendering the grounds null and void.
On the first ground of objection, learned counsel for the respondent observed that the Notice of Appeal was not signed by any of the counsel stated at page 163 of the record. He noted further that there is a signature above the name Emmanuel Esene Esq. with the letters “PP” written beside the name, signifying that someone signed on behalf of Emmanuel Esene. He submitted that there is nothing to show that the person who signed for Emmanuel Esene Esq. is himself a legal practitioner as provided for in Sections 2(1) and 24 of the Legal Practitioners Act.
He submitted that the letters “PP” stand for “per procurationem” meaning “by authority” or “representing” in Latin.
He submitted that all legal processes must be signed by identifiable legal practitioners whose names are on the roll of Legal Practitioners at the Supreme Court. He submitted further that being the foundation or substratum of an appeal, any defect in the Notice of Appeal will render the appeal incompetent and the Court would lack the requisite jurisdiction to entertain it. He referred to: Uwazurike Vs A.G.
Federation (2007) ALL FWLR (Pt.367) 834 @ 846; Shellim Vs Gobang (2009) ALL FWLR (Pt.496) 1866 @ 1880- 1881; Tukur Vs Government of Gongola State (1988), NWLR (Pt. 68) 39; Okafor Vs Nweke (2007) ALL FWLR (Pt.368) 1016 @ 1025-1027; (2007) 1 NWLR (Pt.1043) 521.
On the importance of it being clear who signed a process and the identity of such person as a Legal Practitioner whose name is on the roll of Legal Practitioners in Nigeria, he referred to Ministry of Works & Transport, Adamawa State Vs Yakubu (2013) 6 NWLR (Pt.1351) 481; (2013) ALL FWLR (Pt.694) 23 @ 36 F-H; SLB Consortium vs NNPC (2011) 9 NWLR (Pt.1252) 317 @ 337 – 338, and a host of other authorities.
On the second ground of objection, learned counsel submitted that there was non-compliance with Rule 10 of the Rules of Professional Conduct for Legal Practitioners, 2007, in that the person who prepared the Notice of Appeal did not affix his stamp and seal thereto. He submitted that the provision is mandatory and therefore legal practitioners are not afforded any discretion in the matter. On the effect of the word “shall” when used in a statute, he referred to Okereke Vs Yar’adua (2008) 12 NWLR (Pt.1100) 95 @ 127 F – G; Ugwu Vs Ararume (2007) ALL FWLR (Pt.377) 807 @ 857 C – F.
He argued further that where the law prescribes the procedure for doing a particular thing, the prescribed procedure must be complied with. He referred to: Dongtoe Vs CSC Plateau State (2001) ALL FWLR (Pt.50) 1637 @ 1663A; Amaechi vs INEC (2008) ALL FWLR (Pt.407) 1 @ 98 C – D. On the need for a legal practitioner to comply with the directives of the Nigerian Bar Association (NBA), he referred to: Chinwo Vs Owhonda (2006) 2 NWLR (Pt.1074) 341.
On the third ground of objection, learned counsel submitted that the grounds of appeal before this Court question the evaluation of facts established before the trial Court and are therefore grounds of mixed law and fact, for which prior leave of this Court or the Court below ought to have been sought or obtained, in accordance with Section 233(3) of the 1999 Constitution, as amended. He referred to: Opuiyo Vs Omoniwari (2007) ALL FWLR (Pt.378) 1093; Oluwole Vs LSDPC (1983) SC 1; Adejumo Vs The State (1983) 5 SC 24; Ogbechie Vs Onochie (1986) 1 NWLR (Pt.23) 484 @ 491.
He submitted that having failed to obtain leave, the grounds of appeal are liable to be struck out. He cited several authorities, including Njemanze Vs Njemanze (2013) 203 MJSC (Pt. II) 30 @ 59 – 60; Oforkire Vs Maduike (2003) 5 NWLR (Pt.812) 166; Oluwole Vs LSPDC (supra). He urged the Court to uphold the objection and strike out the appeal.
In response, learned counsel for the appellant reiterated the well settled principle that only a person whose name appears on the roll of Legal Practitioners at the Supreme Court and who is eligible to practice law as a barrister and solicitor, can sign a Court process. He submitted that in the instant case, the “PP” appearing beside the name Emmanuel Esene, Esq. at page 163 of the record, means “principal partner” and not “per procurationem” in Latin, as asserted by learned counsel for the respondent.
He submitted that the process was signed by Emmanuel Esene, Esq., who is the principal partner in the law firm of Emmanuel Esene & Co.
He urged the Court to compare the signature with the one appearing at particular pages of the record, which he argues, are the same. On the manner in which a process should be signed by a legal practitioner, he referred to: Alawiye Vs Ogunsanya (2013) 5 NWLR (Pt.1348) 570. He submitted that the appellant’s counsel fully complied with the requirements. He referred to Nigerian Army Vs Samuel (2013) 14 NWLR (Pt.1375) 460; FBN Plc Vs Maiwada (2013) 5 NWLR (Pt.1348) 444; Okafor Vs Nweke (supra); SLB Consortium Vs NNPC (supra) and urged the Court to hold that the notice of appeal is competent.
On the failure to affix learned counsel’s stamp and seal to the notice of appeal, he submitted that the said notice of appeal, dated 27/7/2015 was filed on 31/8/2015 prior to the decision of this Court in SC.22/2015: Yaki & Anor Vs Bagudu, delivered on 13/11/2015, where it was held that the affixing of their stamp and seal on legal processes by Legal Practitioners is mandatory. He submitted that prior to the decision, compliance was not strictly enforced. On this issue, he urged the Court to lean in favour of substance and not technicalities.
On the competence of the grounds of appeal, he submitted that they are grounds of law alone and not grounds of mixed law and fact, as contended by the respondent’s counsel. He submitted that all the grounds of appeal are seeking the interpretation of Sections 12(2) and 22(1) of the NNPC Act and therefore do not require leave. On how to determine whether a ground of appeal is a ground of law alone or one of mixed law and facts, he referred to Ekunola Vs C.B.N. (2013) 15 NWLR (Pt.1377) 244; Jim-Jaja Vs C.O.P.
Rivers State (2013) 6 NWLR (Pt. 1350) 225 B – C; NNPC Vs Famfa Oil Ltd. (2012) 17 NWLR (Pt.1328) 148 and several other cases in urging the Court to dismiss the preliminary objection.
Resolution of the Preliminary Objection Sections 2(1) and 24 of the Legal Practitioners Act provides as follows: 2. (1) Subject to the provisions of this Act, a person shall be entitled to practice as a barrister and solicitor if, and only if, his name is on the roll. 24.
In this Act, unless the context otherwise requires, “legal practitioner” means a person entitled to practice as a barrister or solicitor, either generally or for the purposes of any particular office or proceeding.” These provisions have been interpreted in a plethora of decisions of this Court to the conclusive effect that only a legal practitioner whose name is on the roll of legal practitioners at the Supreme Court, is competent to sign legal processes. See: Okafor Vs Nweke (2007) All FWLR (Pt.368) 1016; (2007) 1 NWLR (Pt.1043) 521; SLB Consortium Ltd.
Vs NNPC (2011) 9 NWLR (Pt.1252) 317; (2011) 4 SC 86; FBN Plc vs Maiwada (2013) 5 NWLR (Pt.1348) 444; SPDC vs Sam Royal Hotel Nig. Ltd. (2016) 8 NWLR (Pt.1514) 318, to name just a few. In SLB Consortium Ltd. Vs NNPC (supra), His Lordship, Rhodes-Vivour, JSC, held, inter alia: “What then is so important about the way counsel chooses to sign processes? Once it cannot be said who signed a process, it is incurably bad and rules of Court that seem to provide a remedy are of no use as a rule cannot override the law (i.e. the Legal Practitioners Act).
All processes filed in Court are to be signed as follows: First, the signature of counsel, which may be any contraption. Secondly, the name of counsel clearly written. Thirdly, who counsel represents. Fourthly, name and address of legal firm. In this case, there is signature of counsel but no name of counsel. A signature without a name is incurably bad.” (Underlining mine)
The notice of appeal in the instant appeal can be found at pages 160 – 163 of the record. At the top of page 163 there is a contraption above the name Emmanuel Esene Esq. The letters “pp” are handwritten beside the name Emmanuel Esene Esq. Beneath Emmanuel Esene Esq., is another name, Peace Ojemen (Miss). The next line states Emmanuel Esene & Co., followed by “Counsel to the Appellant” and the address of Emmanuel Esene & Co. The bone of contention is “who signed the process?” The contraption above Emmanuel Esene & Co. is indecipherable.
One must therefore move to the next line to determine the owner of the signature and to ascertain that it belongs to a legal practitioner whose name is on the roll as required by the Legal Practitioners Act.
The letters “pp” when placed before a name on a document, are an abbreviation of the Latin term “per procurationem” or “per pro.” It is universally known to be used when signing a letter or document on someone else’s behalf. Black’s Law Dictionary, 8th Edition page 1177 defines “per procurationem”, “per pro” or “pp” to mean “By Proxy.” Osborne’s Concise Law Dictionary, 8th Edition at page 246 defines it to mean “as an agent”, “on behalf of another.”
“pp Emmanuel Esene Esq.” means the contraption or signature above that name belongs to an unidentified person who signed the document on Emmanuel Esene’s behalf. For the process to be competent, it must be shown that the person who appended his signature on behalf of Emmanuel Esene Esq. is himself a person who is entitled to practice as a legal practitioner in Nigeria and whose name is on the roll in compliance with Sections 2 (1) and 24 of the Legal Practitioners Act.
There is no such indication on the process. Learned counsel for the appellant has ingeniously argued that “pp” means Principal Partner. I say ingeniously because, if indeed that were the case, the words would have been written in full and would have appeared immediately beneath the name of the said principal partner. On the face of the process as it stands, the notice of appeal was signed by an unknown person on behalf of Emmanuel Esene Esq. It is incurably defective. In R.A. Oliyide & Sons Ltd.
Vs Obafemi Awolowo University, Ile-Ife (2018) 8 NWLR (Pt.1622) 549; (2018) LPELR-43711 (SC) @ 30 – 31 D – F, this Court per Sanusi, JSC, held: “It seems to me that the issue at hand relates to the non-signing of a process by a legal practitioner, which is purely a jurisdictional issue, because no appeal can properly be placed on an invalid or incompetent process. The respondent’s learned counsel’s stance is that the non-signing of the brief is merely a breach of the rules of Court, which can be waived as a mere irregularity. I do not share that view of his.
This is because the Legal Practitioners Act provides that all processes filed in Court must be signed by a known and named legal practitioner as opposed to an unknown proxy who is obviously not a legal practitioner known to law.”
A notice of appeal is an originating process. It is the foundation/substratum of any appeal. Any defect therein deprives the Court of jurisdiction and vitiates the appeal. See: Madukolu vs Nkemdilim (1962) 2 NSCC 374; Nigerian Army Vs Samuel & Ors. (2013) 14 NWLR (Pt.1375) 466; (2013) LPELR-20931 (SC) @ 17 – 18 F – C; Uwazurike & Ors. Vs A.G. Federation (2007) LPELR-3448 (SC) @ 14 D – F; Ikuepenikan Vs The State (2015) 9 NWLR (Pt.1465) 518; (2015) LPELR-24611 @ 48 A- D.
The first ground of objection is resolved in the appellant’s favour. Having held that there is nothing to show that the person who signed the notice of appeal per pro Emmanuel Esene Esq. is an identifiable legal practitioner and that the notice is accordingly incompetent, the issue of affixing the unknown legal practitioner’s stamp and seal to the process in compliance with Rule 10 of the Rules of Professional Conduct for Legal Practitioners, becomes otiose.
The final ground of objection is the competence or otherwise of the grounds of appeal. While the respondent contends that all the grounds of appeal raise questions of mixed law and fact, for which leave is required pursuant to Section 233 (3) of the 1999 Constitution, as amended, learned counsel for the appellant asserts, relying on Section 233 (2) of the Constitution, that the grounds are grounds of law alone for which no leave is required.
Section 233 (2) (a) and (3) of the 1999 Constitution, as amended, provides: 233 (2) An appeal shall lie from the 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 decision of the Court of Appeal to the Supreme Court with leave of the Court of Appeal or the Supreme Court.” In the case of: Ogbechie Vs Onochie (1986) LPELR – 2278 (SC) @ 8 C – E, His Lordship, Eso, JSC, provided a guideline for determining whether a ground of appeal is one of law alone or of mixed law and fact, to wit: “There is no doubt that it is always difficult to distinguish a ground of law from a ground of fact but what is required is to examine thoroughly the grounds of appeal in the case concerned to see whether the grounds reveal a misunderstanding by the lower tribunal of the law or a misapplication of the law to the facts already proved or admitted, in which case it would be a question of law, or one that would require questioning the evaluation of facts by the lower tribunal before the application of the law in which case it would amount to question of mixed law and fact.
The issue of pure fact is easier to determine.” In Chrome Air Services Ltd. & Ors. Vs Fidelity Bank (2017) LPELR-43470 (SC) @ 23 – 24, His Lordship, Nweze, JSC referred to an earlier decision of this Court in ACB Plc. Vs Obmiami Brick & Stone Nig. Ltd. (1993) LPELR – 206 (SC) @ 27 E – F, to wit: “It is now generally accepted that where the ground of appeal is based on an allegation of error deduced from conclusion on undisputed facts, it is a ground of law.
Where, on the other hand, the error of law is founded on disputed facts calling into question the correctness of the facts determined, it is invariably a question of mixed law and fact. This is because in this latter case, it is a conclusion of law coupled with the exercise of discretion.” See also: The State Vs Omoyele (2017) 1 NWLR (Pt.1547) 341; Global West Vessel Specialist Nig. Ltd. vs NNLG Ltd. & Anor. (2017) 1 – 2 SC (Pt. II) 39; (2017) LPELR-41987 (SC) @ 27 – 28 F – D; Fasuyi & Ors. Vs PDP & Ors. (2017) LPELR-43462 (SC) 32 B – D.
It is also trite that the mere labeling of a ground of appeal as a ground of law does not make it so. The Court must examine the grounds along with their particulars in order to make a proper determination of the issue. See: Nwadike & Ors. Vs Ibekwe & Ors. (1987) 12 SC 14; Brittania-U Nig. Ltd. vs Seplat Petroleum Devt. Co. Ltd. & Ors (2016) LPELR – 40007 (SC) @ 52 – 54 E – A; Briggs Vs C.L.O.R.S.N. & Ors. (2005) 4 SC 89; (2005) LPELR-805 (SC) @ 10 C- F.
The four grounds of appeal contained in the Notice of Appeal filed on 31/8/2015 are as follows: Ground One The lower Court erred in law when it held that the Respondent is a corporate subsidiary of the Nigerian National Petroleum Corporation which falls under Section 22 (1) of the NNPC Act 2004 Particulars of Error The respondent failed to prove that he is a wholly owned subsidiary of the Nigerian National Petroleum Corporation.
Ground Two The lower Court erred in law when they held that Section 12 (2) of the Nigerian National Petroleum Corporation Act applies to the Respondent and as such they are entitled to be issued a pre-action notice before instituting the suit against the respondent and failure to do so has made the appellant’s suit premature and liable to be struck out.
Particulars of Error The respondent is a private limited liability company incorporated under Part A of the Companies and Allied Matters Act and not a statutory body as well as not a wholly owned subsidiary of the Nigerian National Petroleum Corporation as claimed by the respondent, without proving same by way of evidence. Ground Three The lower Court erred in law when he held that the appellant’s action with Suit No. FCT/HC/CV/160/2014 was struck out for lack of jurisdiction. Particulars of Error It is trite that one cannot put something on nothing and expect it to stand.
The respondent did not adduce any material evidence to show or prove that he is a wholly owned subsidiary of the Nigerian National Petroleum Corporation for Section 12 (2) of the Nigerian National Petroleum Corporation Act to be applicable. Ground Four The lower Court erred in law when he held that the Nigerian National Petroleum Corporation is itself a corporation it (sic: its) subsidiary corporation is a subsidiary corporation and the use of the word wholly owned subsidiary in Section 22 (1) of the Nigerian National Petroleum Corporation Act is a misnomer and a mere tautology.
Particulars of Error That in accordance to (sic) Section 22 (1) of the Nigerian National Petroleum Corporation Act, before the respondent can be a subsidiary of the NNPC it must be wholly owned. (Underlining Mine)
A careful perusal of the grounds of appeal and their particulars shows clearly that they raise issues of mixed law and facts, as the alleged error of law complained of is founded on disputed facts calling into question the correctness of the facts determined. The facts are in contention to the extent that the appellant is inviting the Court to determine whether the respondent established by evidence that it is a wholly owned subsidiary of NNPC to bring it within the purview of Section 22 (1) of the NNPC Act.
Having failed to obtain the requisite leave of this Court or the Court below before filing the appeal, the notice of appeal filed in breach of Section 233 (3) of the 1999 Constitution, as amended, is incompetent, null and void. It is accordingly hereby struck out.
In light of my several findings above, I find merit in the preliminary objection raised by the respondent. It is hereby sustained. The appeal is hereby struck out for incompetence. Costs of N1 million are awarded against the appellant in favour of the respondent.
EJEMBI EKO, J.S.C.: The question: who signed the Notice of Appeal strikes at the very foundation the appeal is predicated on. The Notice of Appeal appears to have been signed or settled by an unknown proxy of the named Legal Practitioner – Emmanuel Esene, Esq. of Emmanuel Esene & Co. There is a hand written prefix- “pp” to the name Emmanuel Esene, Esq. The prefix “pp” suggests prima facie that it was the unnamed and unknown proxy or agent of the said Legal Practitioner Emmanuel Esene, Esq., who signed or settled the said Notice of Appeal.
The contraption clearly renders the Notice of Appeal a suspect document. “Who signed this Notice of Appeal?” is a question of fact. In the Appellant’s Reply Brief, Mr. Esene of Appellant’s Counsel suggests, by way of unverified evidence from the Bar, that “pp” means Principal Partner” and that he is the said Principal Partner. A bare statement from the Bar, unverified, has no force of legal evidence: ONU OBEKPA v. C.O.P. (1980) 1 NCR 113.
Accordingly the said bare statement from the Bar, not having any force of legal evidence, does not satisfy the requirements of Sections 131 & 132 of the Evidence Act, 2011 to the effect that the burden of proof lies on he who asserts the existence of a fact on which depends any legal right he claims to prove that the said fact exists. It is not a notorious fact that the abbreviation “pp” means “principal partner”. On the other hand, the letters “pp” is universally known in law to mean “by proxy”: Black’s Law Dictionary 9th Ed.
Page 1256; Earl Jowitt: The Dictionary of English Law, 1965 second impression at pages 1328 & 1419. Generally, the Court does not know abbreviations and therefore will not rely on its personal information (which may well be mistaken) to venture meanings: RAGO KURA v. C.O.P (1976) NWLR 148 at 149. Thus as Rhodes-Vivour, JSC held in SLB CONSORTIUM LTD v.
NNPC (2011) 9 NWLR (pt. 1252) 317: Once it cannot be said who signed a process, the process is incurably bad. The instant Notice of Appeal signed by an unknown and unnamed proxy of Emmanuel Esene, Esq as Appellant’s counsel is incurably defective. I agree with my Lord, K. M. O. KEKERE-EKUN, JSC, in the judgment just delivered that the appeal be, and is hereby struck out for incompetence. I also adopt orders as to costs made therein. Appeal struck out.
MOHAMMED LAWAL GARBA, J.S.C.: I have read a draft of the lead judgment written by my learned brother, K. M. O. Kekere-Ekun, JSC, in this appeal and completely agree with the views that there is merit in the Preliminary Objection raised by the Respondent on the competence of the Notice of Appeal filed by the Appellant on 31st August, 2015, which is at pages 160 – 163 of the Record of Appeal.
A calm look at the Notice of Appeal would easily show that it was signed by an unknown proxy, for Emmanuel Esene, Esq. and not by an identified or even identifiable Legal Practitioner whose name is or can be on the Roll to be entitled to practice as a Barrister or Solicitor, either generally or for the purpose of any particular office or proceeding, as prescribed by the provisions of Sections 2(1) and 24 of the Legal Practitioners’ Act (LPA). In all the appellate Courts in Nigeria, a Notice of Appeal is the originating process which is used to invoke the constitutional jurisdiction to hear and determine appeals against the decisions of lower Courts vested in the appellate Courts.
The validity of such a Notice of Appeal is therefore sine qua non to the competence and jurisdiction of the appellate Courts to entertain and adjudicate over the appeals. See Amadi v. Okoti (1972) 7 SC, 57, Olanrewaju v. BON Ltd (1994) 8 NWLR (pt. 364) 622, Uwazurike v. A.G. Federation (2007) 8 NWLR (pt. 1035)1.
A material defect on the Notice of Appeal such as non-compliance with the provisions of the Legal Practitioners’ Act (LPA), as in the present appeal, is fatal and will render it legally invalid and incompetent to be incapable of properly invoking the requisite jurisdiction of the appellate Court. See Dambam v. Lele (2000) 11 NWLR (pt. 678) 413, Abiola v. Olawoye (2006) 13 NWLR (pt. 996) 1, Re: Otuedon (1995) 4 NWLR (pt. 392) 655, FBN Plc v. T.S.A. Ind. Ltd. (2010) 15 NWLR (pt. 1216) 247, CBN v. Okojie (2004) NWLR (pt. 882) 488.
In addition, all the four (4) grounds contained on the Notice of Appeal, at best, raise and involve issues or questions of mixed law and facts, which, as a condition precedent for their validity, require the prior leave of either the Court below or this Court by dint of Section 233 (2) (a) and (3) of the 1999 Constitution (as amended). The Notice of Appeal was filed as of right and so the condition precedent for its validity was not fulfilled, thereby rendering it incompetent and depriving the Court of the requisite jurisdiction to entertain and adjudicate over the appeal on the merit.
See Ikweki v. Ebele(2005) 2 SC (pt 11) 96, REAN, Plc v. Anumnu (2003) 6 NWLR (pt. 815) 52, Abalaka v. President, FRN (2012) 5 NWLR (pt. 1292) 102.
The above restatements of the law on the requirements of the Legal Practitioners’ Act (LPA) on the signing of documents to be filed in Court and for leave in respect of grounds of appeal which raise or involve questions of mixed law and facts in this Court, are now common knowledge to require citation of more judicial authorities than referred to in the lead judgment.
For the above and better reasons in the lead judgment, I join in striking out the Notice of Appeal for being grossly incompetent.
IBRAHIM MOHAMMED MUSA SAULAWA, J.S.C.: Having previewed, before now, the judgment just delivered by my learned brother the Hon. Justice M.K.O Kekere-Ekun, JSC, I have no hesitation whatsoever, in concurring with the reasoning reached therein, to the effect that the present appeal is grossly incompetent.
Undoubtedly, by failing to seek and obtain the necessary leave of the Court prior to filing the appeal, the notice of appeal filed on 31/08/2015 in blatant contravention of the mandatory provisions of Section 233 (3) of the Constitution of the Federal Republic of Nigeria, 1999 as amended, is rendered grossly incompetent.
Hence, I too hereby strike out the appeal for incompetence. I abide by the consequential order in regard to costs of N1 million awarded against the Appellant, in favour of the Respondent.
TIJJANI ABUBAKAR, J.S.C.: This appeal is against the decision of the Court of Appeal Abuja Division delivered on the 12th day of June, 2015 in favour of the Respondent in this appeal. The Appellant became aggrieved and therefore brought this appeal.
The facts grounding the appeal are that, the Appellant herein was providing security for the Respondent in Kaduna and its pipelines pump station in Zaria. The agreement was terminated by the Respondent and the Appellant commenced action at the trial Court challenging the termination.
The Respondent filed preliminary objection contending that the Appellant must serve it pre-action Notice being an agency of the NNPC, the trial Court disagreed, the Respondent therefore appealed to the Court of Appeal where the lower Court agreed that it was necessary to serve the Respondent pre-action Notice and therefore struck out the action for incompetence. The Appellant therefore lodged an appeal before this Court against the decision of the lower Court.
The Respondent filed Notice of preliminary objection contending that the Notice of appeal was not properly signed and the grounds of appeal are grounds of mixed law and facts, the Appellant therefore needed leave of Court to bring the appeal. The learned Counsel for the Respondent therefore argued that the appeal was not initiated by due process.
My Lord and learned brother, KEKERE-EKUN, JSC who graciously granted me the privilege of reading in draft the leading judgment prepared and rendered in this appeal, carefully and meticulously resolved all the issues submitted for determination, I must admit that the resolution of the issues by my lord is in accord with my views, I therefore adopt the Judgment as my own.
I entirely agree that the four grounds of appeal filed by the Appellant are grounds of mixed law and facts, the Appellant ought to have sought for and obtain leave of Court before bringing the appeal, and having failed to do so as required by Section 233 (3) of the Constitution of the Federal Republic of Nigeria 1999 (as amended), the appeal must be held to be incompetent. Respondent’s preliminary objection is therefore meritorious and is hereby sustained. Appellant’s appeal is accordingly struck out. I also abide by all consequential orders including the order on costs.
Appearances
SET SUCCESS ENTERPRISES & CO LTD v. IBEJU-LEKKI LOCAL GOVERNMENT COUNCIL & ANOR
On Friday, December 10, 2021
SC.333/2008Before Their Lordships
Kudirat Motonmori Olatokunbo Kekere-Ekun 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
Emmanuel Akomaye Agim Justice of the Supreme Court of Nigeria
Between
Judgment
IBRAHIM MOHAMMED MUSA SAULAWA, J.S.C. (Delivering the Leading Judgment): The present appeal is a natural reaction by the Appellant against the judgment of the Court of Appeal, Lagos Judicial Division, delivered on June 12, 2008 in appeal no. CA/L/489/2005.
By the judgment in question, the Court below, coram Ogunbiyi, JCA (as then was), Mshelia and Nwodo, JJCA, dismissed the Appellant’s appeal against the Judgment of the trial High Court delivered on May 19, 2005 (LD/1037/2002), which dismissed in part the Appellant’s claim against the Respondent for outstanding balance of contract sum and damages for breach of contract.
BACKGROUND FACTS The Appellant is a limited liability company having the registered office thereof at 20/22 Adedoyin Street, Ketu, Lagos Slate. On the other hand, the Respondent is a Local Government Council having its Administrative Secretariat al Akodo, Lagos State.
The genesis of the case leading the to instant appeal is traceable to May 27, 2002. Indeed, that was the day the Appellant instituted the case in the trial High Court, thereby seeking against the Respondent the total sum of N26.5 Million being special and general damages for a stabilization contract awarded to the Appellant In the Respondent.
By the statement of claim, filed along with the writ of summons thereof on the date in question, the Appellant claimed against the Respondent: 1. Particulars of special damages. a. The sum of N20,007076.60 being the balance of the contract sum of N35,007076.60k due to the plaintiff in respect of the stabilization of a 16.5 kilometers laterite road from Ajegbenwa to Dongo in Ibeju-Lekki Local Government Area of Lagos State; and b. The sum of N1,500,000.00 being retention fee. 2.
General Damages: The sum of N5,000,000.00 being general loss suffered by plaintiff as a result of the unquantified damages suffered by the failure of the Defendant to pay the whole contract sum as and when due. 2. Interest on the special damages at the rate of 36% per annum till the date of judgment and thereafter at the rate of 6% per annum until the judgment debt and necessary costs is fully paid by the Defendant.
The Respondent reacted by filing a statement of defence to the claim, to which the Appellant filed a reply. Pleadings having been filed and exchanged between the respective parties, the suit proceeded to trial. In the course of which, the Appellant called two witnesses and tendered thirteen (13) documentary evidence, which were admitted as exhibits by the trial Court.
Contrariwise, the Respondent called one witness who testified in chief but failed to show up for cross-examination by the Appellant’s counsel.
At the close of evidence, the trial Court deemed it expedient to order for written addresses. Consequent whereupon, the Appellant filed its written address. However, the Respondent, for reason best known thereto, failed to file any written address as ordered by the trial Court.
The trial Court, not unexpectedly, proceeded to deliver the judgment on the said 19/05/2005, to the conclusive effect: I am satisfied on the evidence before me that the claimant has been able to prove on the balance of probabilities, his entitlement to N6 Million being the balance of the 60% first instalment as per Exhibit P 10. The law is trite that the Court can award less but not more than what is claimed if that is what is proved by the evidence
OWENA BANK PLC V. OLATUNJI (2002) 13 NWLR (PT. 781) 259 AT 349 citing EKPE V. FAGBEMI (1978)1 LRN 137 at 140. I cannot also on the basis of the evidence before me hold that the claimant is entitled to General damages as claimed as there appears to be outstanding issues between the parties in respect of the work done on the project. The 1st defendant does not even consider the project has been completed. The claimant in this case has sued both the 1st Defendant and its chairman as the 2nd Defendant. The contract agreement here was between the claimant and the 1st Defendant only.
I do not see why the 2nd Defendant had to be joined in this suit. He is not a proper party to this suit and I so hold. For this reasons given in the body of this Judgment therefore, judgment is hereby awarded in favour of the claimant against the 1st Defendant only in the sum with interest at the rate of 10%per annum from today 19th May, 2005 until the Judgment debt is fully paid. The claims for general damages are hereby dismissed. This is the judgment off his Court. N20,000 costs to the claimant.
Not unnaturally, the Appellant, being dissatisfied with the judgment of the trial Court aforementioned, appealed to the Court below.
As alluded to above, the Court below dutifully heard the appeal and delivered the vexed judgment on the said June 12, 2008, to the conclusive effect: On the totality of the appeal before us, the issues are hereby resolved against the appellant and in favour of the respondent. The appeal in the circumstance is devoid of merit and accordingly dismissed. The judgment of the learned trial Judge of the High Court of Lagos State delivered on 19th day of May, 2005 is hereby affirmed. With costs following events, I would award the sum of N30,000 in favour of the respondents.
Appeal dismissed with N30,000.
On 21/09/21, when the appeal at long last came up before us for hearing, the learned counsel had the opportunity of addressing the Court and adopting their respective briefs of argument prior to reserving Judgment to today.
DETERMINATION OF THE RESPONDENT’S PRELIMINARY OBJECTION It’s trite, that the Respondent has had the liberty of raising in the brief thereof (pages 2-12 of the Respondent’s Amended Brief of Argument) a preliminary objection, thereby vehemently challenging the competence of the Appellant’s notice of appeal, to the effect that: The three grounds of appeal contained in the notice of Appeal dated 11th of September, 2008 and the issues/arguments formulated thereon be struck out for being incompetent having not complied with Order 8 Rule 2 (3) (4) of the Supreme Court Rules and/or bad for falsity.
Each of the three grounds of the notice of appeal has been copiously reproduced along with their particulars at pages 4-7 of the Respondent’s brief, viz: Ground 1 Error in Law The learned Justices of Court of Appeal erred in law in their interpretation of clauses 4, 5.2, 5.3 and 12 of the Contract Agreement between the parties (Exhibit P5), and thereby arrived at the erroneous conclusion the there was no certification of completion of contract works and that the Appellant was not entitled to full payment of contract sum, notwithstanding the documentary evidence on the contrary.
Particulars of Error (i) The contract agreement executed by the parties tendered as Exhibit P5 was very clear, plain and unambiguous in its provisions as to the mode and stages of payment, inspection and certification, and the issuance of payment/completion certificate, which provisions are binding on the parties, and effect ought to have been given accordingly to them by the Court below. (ii) The Court below was wrong in relying on its own observation from examination of the documents to decide matters which did not the actual evidence on record. (iii) It vas in evidence that the Appellant had performed and complied with all the duties crated on its part by the contract agreement, and there was no complaint whatsoever by the Respondents of any defect or dissatisfaction within the six-month window for release of final payment, being the third stage of payment, namely payment of the retention fee. (iv) Pursuant to Clause 5.2 of the Contract Agreement, the Respondent’ designated agent and representative, the Local Government Engineer, had duly inspected the works, and issued a payment certificate, certifying satisfactory execution of the works, and thereby entitling the Appellant to payment of the second stage payment of 30% of the contract sum as provided for in Clause 4 of the Contract Agreement. (v) Pursuant to Clause 12 of the Contract Agreement, the Local Government Engineer (as the duly designated agent and on behalf of the Respondents) had upon inspection and due satisfaction, issued a completion certificate to the Appellant, tendered as Exhibit P8 entitling the Appellant to payment of the final payment envisaged in clause of the contract agreement, being the third stage payment provided for by Clause 4 of the said contract agreement. (vi) The certificate by the Local Government Engineer, being a document of the Respondents, (Exhibit P8) was very clear in its certificate of “value of works to date being the entire contract works. (vii) The certificate (Exhibit P8) was unequivocal in stating that the amount due for payment to the Appellant was the sum of N18,006,369.00 which is the balance, less the retention fee. (viii) The lower Court was therefore in error in failing to hold that Exhibit P8 was the payment certificate issued by the Respondents or their representative, but rather placed reliance on a letter dated 8th March 2002 (Exhibit P10) written outside the six months retention and warranty period provided by Clause 4 of the contract agreement. (ix) There was no evidence of any complaint made by the Respondents in respect of the work executed by the Appellant within the six months window for observation of defects and for retention fee. (x) Extrinsic evidence such as Exhibit P10 ought not be used to vary the contents of a written contract validly entered into by the parties. (xi) The interpretation placed Exhibit P5 and P8 by the learned Justice of the Court of Appeal occasioned a miscarriage of justice.
Ground 2: Error in Law The learned Justices of Court of Appeal erred in law when they held that the Appellant failed to prove its case on balance of probabilities that it had fully executed the contract awarded with the terms of contract with the terms of the contract and thus entitled to full payment under the said contract, having due regard to the unchallenged evidence on record Particulars of Errors: (i) The Appellant had testified and tendered 13 documentary Exhibit in support of its case, particularly the contract document (Exhibit P 5) and the Certificate of Completion from the Respondents (Exhibit P8) (ii) The lower Court was in error in holding that the completion certificate pleaded by the Appellant in paragraph 7 of its Statement of Claim was not tendered as a careful perusal of the pleadings reveals that same was Exhibit P8. (iii) The Respondents had abandoned their defence at the trial, and had equally failed to file a Respondent’s brief of argument at the Court below despite all opportunities afforded them so to do, as rightly found by the Court below. (iv) The Appellant’s evidence in the absence of any challenge by the Respondents was substantial and overwhelming, and it was open to the Court to act on such unchallenged and uncontroverted evidence, which was neither inherently incredible nor offended any rational conclusion. (v) The issuance of Exhibit P8 pursuant to Exhibit P5 by the Respondents is conclusive proof that the Appellant had completely and satisfactorily executed the contract works. (vi) The duty imposed by Exhibit P5 on the Appellant is to complete the contract satisfactorily to be certified by the Respondents’ designated professional and expert, and having done so, the duty arose on the part of the Respondents to issue the final certificate and release the retention balance to the Appellant. (vii) The Respondents having issued the completion certificate through their Council Engineer as provided for by the contract agreement are not free to resile therefrom or to disclaim the certificate. (viii) The issue before the Court was a narrow one, namely whether on the evidence before the Court, the Appellate is entitled to payment in the terms of the contract agreement, having executed the contract, which the Appellant established. (ix) The Appellant is entitled to succeed on the strength of its own case as established by it, which was on the preponderance of evidence.
Ground 3: Error in Law The learned justices of Court of Appeal erred in law when they held that the Appellant was not entitled to an award of damages upon the interpretation outcome of the case.
Particulars of error (i) The Appellant established that there was a breach of contract, even as the learned trial Judge had found that part of the first stage payment was still being owed the Appellant, that is, the sum of N6 million (ii) The Appellant had also established that there was no mobilisation fee paid, and that it engaged bank facility to execute the project, with the attendant interests, occasioned by the default in payment by the Respondents. (iii) The funds of the Appellant had been tied down since 2001 as a result of the default of the Respondent. (iv) The Appellant is clearly entitled to damages and interests. (v) Notwithstanding that costs follow event, the costs awarded in favour of the Respondents who refused to appear in Court at all and/or failed to file any process in Court, were unreasonable and amounted to rewarding intransigence.
Instructively, an appeal is a challenge against the decision of the trial Court or the Court below, as the case may be. Essentially, an appeal challenges the correctness of the decision being appealed against on three fundamental grounds: (i) on the grounds of law; (ii) mixed law and facts; (iii) or on facts simpliciter.
Thus, to justify the intervention of the appellate Court on any of the grounds of the notice of appeal before it, the appellant has an up-hill task of establishing that the decision of the Court below he seeks to be reversed or set aside was wrongly arrived at, or the opinion expressed therein is not supported by the pleadings and evidence on the record. See GUARDIAN NEWSPAPERS LTD VS. REV. PASTOR C.I. AJEH (2011) LPELR-1343 (SC) @ 27 paragraphs A-C and UOR VS. LOKO (1988) 2 NWLR (pt. 77) 430.
Where a decision of a Court is challenged on the ground that the trial Court failed to properly consider the appellant’s case, the appellate Court in the exercise of its primary judicial responsibility, ought to take into account certain fundamental factors: (i) The nature of the evidence before the trial Court or the Court below. (ii) Whether the Court below accepted or rejected any evidence upon the correct perception. (iii) Whether the Court below used the imaginary scale of justice to weigh the evidence on either side of the divide, and (iv) Whether the Court below appreciated upon the preponderance of evidence which side the scale weighed having regard to the burden of proof.
This trite fundamental doctrine has been reiterated in a plethora of formidable authorities. See EGONU VS. EGONU (1978) 11-12 SC 111, AGBONIFO VS. AIWEREOBA (1988) 14 NWLR (pt.70) 325, KIM VS. EMEFO (2001) 4 NWLR (pt. 102) 147, SALAWU VS. MAKINDE (2002) LPELR-12318. Jurisprudentially, a ground of (for) appeal denotes a trial Court’s (or of Court below) errors of procedural law that form a basis for asking (praying) an appellate Court to review a case. Equally termed, ground for review. See BLACK’S LAW DICTIONARY, edition, 2019 @ 848.
Invariably, the objective of issues for determination by the Court is primarily to enable the parties streamline the issues in the grounds of appeal, contained in the notice of appeal, thereby ensuring accuracy, brevity and clarity.
A critical albeit dispassionate consideration of ground I, copiously alluded to above, would confirm that it is vague, in the sense that it is actually not clear what the complaint is all about. As aptly argued by the Respondent, at first what the error complained about apparently relates to the interpretation of Clauses 4.5.2,5.3 and 12 of the Contract Agreement. However, it is rather obvious, the ground equally relates to evaluation of documentary evidence on record. Thus, the actual nature of the complaint in ground I is far from being unambiguous.
The particulars are rather unhelpful in clearing the ambiguity inherent in ground 1.
Most especially, particulars (i) & (ii) are apparently argumentative, as they seem to complain about interpretation. Particulars (iii) to (x) are virtually argumentative, and narrative in nature, thereby complaining about evaluation of evidence on record.
What’s more, particular (x) is clearly irrelevant and extraneous to the decision of the Court below. Ground 2 is equally vague, prolix and outrageously unwieldy. One is left in doubt as to whether ground 2 complains of burden of proof, when the evidence on record is unchallenged, or the evaluation of evidence by the Court below. Particulars (i), (ii), (v), (vi), (ix) are narrative and apparently dwell on evaluation of evidence. Particulars (vii) and (viii) are outrageously inconsistent with the ground in question. Particular (iii) is obviously unrelated 10 the ground.
Likewise, particular (xiii) is bad for falsity, in the sense that the Court below has clearly decided on the question whether the Appellant was actually entitled to payment based on the contract. Particulars (ii) and (iii) apparently deal with the burden of proof, when evidence is actually unchallenged.
Lastly, but not the least, ground 3, which for all intent and purposes is apparently bad for falsity, as the Court below affirmed the award of damages by the trial Court. Damages were awarded on the N6 million proved in the course of the trial. The ground 3 in question does not appear to have evidently flowed from the vexed judgment of the Court below. The said ground 3 is to say the least, at large!
Most regrettably, issue 1 allegedly distilled from grounds 1 and 2 of the notice of appeal apparently dwells on interpretation. The said issue is extraneous to the grounds, as particulars of errors of interpretation have not been provided in the grounds. See ADAH VS. ADAH (2001) 5 NWLR (pt. 705) 1, ABAYOMI VS. AG ONDO STATE (2006) 8 NWLR (pt. 982) 211, MOMODU VS. MOMOH (1991) 2 SC1, MAGIT VS UNIVERSITY OF AGRICULTURE, MAKURDI (2005) 19 NWLR (pt. 959) 211.
Interestingly, the hallmark of the principles enunciated in the foregoing authorities is to the effect, that an issue for determination must be predicated upon or distilled from a competent ground of appeal. This is indeed so, whether or not the issue is raised by the Appellant or the Respondent. Thus, an issue for determination not distilled or derived from a competent ground of appeal, ought to be struck out along with the incompetent ground in question. The proposition of law is indeed trite, one cannot put something on nothing and expect it to stand.
No, it would most assuredly crumble and fall just like the way the cookies crumble. See MACFOY VS. UAC (1961) AC per Lord Denning, MR.
The issue 2, distilled from ground 3 does not at all relate to the decision of the Court below, because the Court only affirmed the position of the trial Court that the Appellant was only entitled to N6 million at the interest rate of 10% per annum. There ought not to have been a complaint about damages that was not awarded.
Hence, against the backdrop of the foregoing postulations, the most inevitable conclusion that could be arrived at in the instant appeal, is to the effect that the Respondent’s preliminary objection is meritorious, thus ought to be granted by me.
CONSEQUENTIAL ORDERS A preliminary objection as a veritable threshold, is pre-emptive in nature. It fundamentally aims at aborting (terminating) the appeal in limine (prematurely). An appellate Court is required to, first and foremost, determine the preliminary objection in the appeal. It does not matter whether such an objection is frivolous, it should not be disregarded. Thus, where the preliminary objection meritoriously succeeds, the Court has no option other than to grant same, and at that point strike out the appeal for being incompetent.
See NWANWATA VS ESUMEI (1998) 8 NWLR (pt. 563) 650, TAMBCO LEATHER WORKS LTD VS. ABBEY (1998) 12 NWLR (pt. 579) 548, FIRST BANK OF NIGERIA PLC VS. TSA INDUSTRIES LTD (2010) 15 NWLR (pt. 1216) 247 SC. Indeed, the rationale of a preliminary objection is that where it succeeds, as in the instant appeal, there would be no need at all to proceed to determine the appeal on the merits; as doing so is tantamount to a futile, wasteful exercise. See NDIGWE VS. NWUDE (1999) 11 NWLR (pt. 626) 314, NEPA VS. ANGO (2001) 15 NWLR (pt. 737) 627.
Hence, having determined that the instant appeal is grossly incompetent, thereby upholding the Respondent’s preliminary objection, the appeal is accordingly hereby struck out by me. There ought not to be any order in regards to costs.
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MARY UKAEGO PETER-ODILI, J.S.C.: I agree with the judgment just delivered by my learned brother, Ibrahim Mohammed Saulawa JSC and to underscore the support, I have in the reasonings from which the decision came about, I shall make some remarks. This is an appeal against the judgment of the Court of Appeal, Lagos Division or Court below or lower Court, Coram C.B. Ogunbiyi JCA (as he then was), A.G. Mshelia and R.O. Nwodo JJCA, delivered on the 12th June, 2008, dismissing the appellant’s appeal against the judgment of the High Court of Lagos State dated 19th May 2005 per J.E. Oyefeso J.
FACTS BRIEFLY STATED The appellant (as plaintiff) had by a suit instituted on 27th May, 2002 before the trial High Court claimed against the defendants (now respondents) the sum of N26.5 million being special and general damages for a road stabilisation contract awarded to the Plaintiff by the Defendant which contract the Plaintiff completely executed. The plaintiff claimed as follows:- “(1) Particulars of Special Damages: (a).
The sum of N20,007,076.06 being the balance of the contract sum of N35,007,076.60 due to the Plaintiff in respect of the stabilisation of a 16.5 kilometers laterite road from Ajegbenwa to Dongo in Ibeju-Lekki Local Government Area of Lagos State, and (b). The sum of N1,500.000.00 being retention fee. (2). General Damages: The sum of N5,000,000.00 being general loss suffered by the Plaintiff as a result of the unquantified damages suffered by the failure of the Defendants to pay the whole contract sum as and when due. (3).
Interest on the special damages at the rate of 36% per annum till the date of judgment and thereafter at the rate of 6% per annum until the judgment debt and necessary costs are fully paid by the Defendant.
The Defendants filed a Statement of Defence. In answer thereto, the Appellant filed a reply to the Statement of Defence. The Appellant called two witnesses to prove its claim and tendered thirteen (13) documentary exhibits in support thereof. The Defendants called one witness who testified in chief and refused to show up for cross-examination, and the Defendants abandoned their defence. At the close of evidence, written addresses were ordered and the Appellant filed its written address.
The Defendants did not filed any written address.
The kernel of the Appellant’s case is that it had completely executed the contract for the stabilisation of a 16.5 laterite road awarded to it by the Defendants in accordance with the contract agreement signed by the parties and admitted in evidence as Exhibit P3, and having been issued a certificate of completion of the parties’ agreement in the said contract document, and which was duly signed by the Defendants’ Council Engineer on their behalf .and with their authority, the Defendants were bound to perform their obligation under the contract, namely to pay the Appellant the sum outstanding on the contract.
The Appellant’s PW 1, Chief Michael O. Odumenya, testified and tendered the letter of offer of the contract dated 15th November, 2000 as Exhibit P1, the Appellant’s letter of acceptance dated 16th November, 2000 as Exhibit P2, the Contract Agreement dated 16th December 2000 as Exhibit P3; the letter of review of the contract sum dated 31st January, 2001 as Exhibit P4, the revised contract agreement dated 31st January, 2001 as Exhibit P5.
The Appellant also tendered the Appellant’s letter reporting completion of the contract dated 28th May, 2001 as Exhibit P6 and the Appellant’s letter of demand for payment of balance dated 5th June, 2001 as Exhibit P7 and the certificate of completion issued by the Defendants to the Appellant dated 12th June, 2001 as Exhibit P8. The Appellant further tendered its Counsel’s letter of demand dated 18th April, 2002 as Exhibit P 9, while the Defendants’ letter to the Appellant offering part-payment of N6 million dated 8th March, 2002 was tendered as Exhibit P10.
The Appellant also tendered its bank’s statement of account for the material period as Exhibit P11 while a Guardian Newspaper publication of 3rd April, 2002 was tendered as Exhibit. An earlier letter by the Appellant for a review of the contract sum was tendered as Exhibit P13 while a certified true copy of the above-said Guardian publication was tendered as Exhibit P14.
The Defendants on the other hand, had no evidence to controvert the overwhelming evidence proffered by the Appellant on the due execution of the contract and the liability of the Defendants to pay the outstanding balance in terms of the contract agreement.
The learned trial Judge, inspite of the preponderance of evidence in support of the fact that the Appellant had executed the contract as agreed upon by the parties, failed to give judgment to the Appellant in respect of the outstanding balance by adopting an erroneous interpretation of the clauses of the contract agreement, but however gave judgment for the sum of N6 million that was not in dispute. The Appellant dissatisfied with the said judgment, appealed to the Court below, armed with 5 (five) grounds of appeal.
The Respondents despite being served with the Notice of Appeal, the Appellant’s Brief of Argument and several hearing notices, failed to challenge the appeal in any manner whatsoever including filing of their Respondents’ Brief of Argument. The Court below even on the face of the unchallenged appeal, on the 12th day of June 2008 in a considered judgment upheld the decision of the Court of first instance and dismissed the Appellant’s appeal.
It is against this judgment dismissing the Appellant’s appeal by the Court below that the Appellant has now appealed to this Court by a Notice of Appeal dated the 11th day of September, 2008 and filed on the 11th day of September, 2008.
At the hearing on 21/9/2021, learned Senior Advocate Gordy Uche adopted the appellant’s brief of argument filed on 9/11/2009 and deemed filed 13/12/2010 and appellant’s amended reply brief filed on 23/12/2020. He raised two issues for determination, viz: 1. Was the Court below right in its interpretation of clauses 4, 5.2, 5.3, and 12 of the contract agreement (Exhibit P5) when they came to the full payment of the contract sum. (Arising from Grounds 1 & 2) 2.
Was the Court below right when it held that the Appellant was not entitled to an award of damages inclusive of interests on the sum owed the Appellant by the Respondents. (Arising from Ground 3).
Said Sanusi, learned Counsel for the respondents adopted their brief filed on 18/2/2020 and deemed filed on, 18/3/2020. In the brief was argued a Preliminary Objection which learned counsel said if it failed, the Court should consider a single issue as follows:- Whether the Court of Appeal was justified in affirming the judgment of the High Court that the appellants did not prove his entitlement to the full claims sought.
It is without saying that the Preliminary Objection of the respondents would be first considered before anything else as upon it depends the validity of the appeal.
PRELIMINARY OBJECTION Learned Counsel for the respondents/objection submitted that the three grounds of appeal are incompetent and should be struck out since they did not comply with Order 8 Rule 2(3) & 4 of the Supreme Court Rules.
That the instant grounds of appeal are not only argumentive, narrative in nature, the particulars in some cases are so dissimilar to the grounds and are vague.
That ground one is vague in the sense that one cannot really decipier what the complaint is really about. He cited CBN v Okojie (2002) 8 NWLR (pt. 768) 48 at 61.
Learned counsel for the objectors contended that ground 2 is prolix in nature, and unwieldy, and also vague. Also that ground 3 is vague. He cited Globe Fishing Industries Ltd v Coker (1990) NWLR (pt. 162) 265 at 300, Osasona v Ajayi (2004) 14 NWLR (pt. 894) 527.
The appellant responded stating that the entire grounds of appeal filed by the appellant are all proper and valid as the grounds of appeal flow directly from the judgment appealed against and are set out concisely, precisely and succinctly and clearly show the nature and ambit of the appellant’s complaints before the Court. See Oloruntoba Oju & Ors v Abdul-Raheem & Ors (2009) 13 NWLR (pt. 1157) 83 at 120 – 121.
That the Supreme Court has a duty to do substantial justice, on the live issues begging for determination. See Medical and Dental Practitioners Disciplinary Tribunal v Dr. John Emewulu Nicholas Okonkwo (2001) 7 NWLR (pt. 711) 206 at 232. I shall refer to the relevant rules of Court.
Order 8 R.2(3) of the Supreme Court Rules provides as follows: “The notice of appeal shall set forth concisely and under distinct heads the grounds upon which the appellant intends to rely at the hearing of appeal without argument or narrative and shall be numbered consecutively.” Order 8 R.2(4) of the Supreme Court Rules provides as follows: “No ground which is vague or general in terms which discloses no reasonable ground of appeal shall be permitted, save the general ground that the judgment is against the weight of evidence, and any ground of appeal or any part thereof which is not permitted under this rule may be struck out by the Court its own motion or on application by the respondent.” It is to be noted that grounds of appeal as a strict rule must not be verbose, argumentative and vague as these features rob it of its substance.
To achieve its object, it must be concise, straight to the point. It must convey a message. Where this is not the case, it is tantamount to a pipe without a sound, a distinct sound-the error contained in the said judgment, prolix, argumentative and vague. Such grounds are not permitted under the rules of this Court. That is why this Court is won’t say that drafting of grounds of appeal require special expertise because the consequence of non-compliance is that the grounds of appeal may be struck out thereby making the issues formulated thereon incompetent.
The rationale of this rule of Court has been adequately explained in a long line of judicial authorities.
In AIGBOBAHI V AIFUWA (2006) 6 NWLR (PT.976) 270 Per Mohammed J.S.C at page 314 Para G-H said thus: “The whole purpose of a ground of appeal is to appraise or put the other side on notice of the nature of complaint being raised therein and the overriding consideration is whether the ground is clearly stated vague.” See also Anie v Ugagbe (1995) 6 NWLR (pt. 402) 425 at 432 as follows:- “A ground of appeal must be so succinctly couched and specifically described that the other side will know the exact complaint against the judgment, It should also avoid repetition, narration or arguments, The whole purpose of grounds of appeal is to give notice to the side as to what case he is going to meet on appeal.
There should be no ambiguities or roundabout arguments in a ground of appeal.” See also ADEROUNMU V OLOWU (2000)4 NWLR (PT.652) 253 S.C, NATIONAL INVESTMENT & PROPERTIES CO. LTD V THOMPSON ORGANISATION (1969) 6 N.S.C.C. 161 at 164.
In context to the instant grounds of appeal, they are not only argumentative, narrative in nature, the particulars in some cases are so dissimilar to the grounds and they are so vague. Issues have been purportedly formulated on such incongruous grounds of appeal.
The grounds are reproduced hereunder:- “Ground 1 Error in Law The learned Justices of Court of Appeal erred in law in their interpretation of clauses 4, 5.2, 5.3 and 12 of the contract agreement between the parties (Exhibit P5), and thereby arrived at the erroneous conclusion that there was no certification of completion of contract works and that the Appellant was not entitled to full payment of contract sum, notwithstanding the documentary evidence on record to the contrary.
Particulars of Error (i) The contract agreement executed by the parties tendered as Exhibit P5 was clear, plain and unambiguous in its provisions as to the mode and stages of payment, inspection and certification, and the issuance of completion/payment certificate, which provisions are binding on parties, effect ought to have been given accordingly to them by the Court below. (ii) The Court below was wrong in relying on its own observations from examination of the documents to decide matters which did not emerge from the actual evidence on record. (iii) It was in evidence that the Appellant had performed and complied with all duties created on its part by the contract agreement, and there was no complaint whatsoever by the Respondents of any defect or dissatisfaction within the six month window for release of final payment, being the third stage of payment, namely payment of the retention fee. (iv) Pursuant to Clause 5.2 of the Contract Agreement, the Respondents designated agent and representative, the Local Government Engineer, had duly inspected the works, and issued payment certificate, certifying satisfactory execution of the works, and thereby entitling the Appellant to the second stage payment of 30% of the contract sum as provided for in Clause 4 of the Contract Agreement. (v) Pursuant to Clause 12 of the Contract Agreement, the Local Government Engineer (as duly designated agent and on behalf of the Respondents) had upon inspection and the satisfaction, issued a completion certificate to the Appellant, tendered as Exhibit P8 entitling the Appellant to payment of the final payment as envisaged in Clause 5.3 of the Contract Agreement, being the third stage payment provided for Clause 4 of the said Contract Agreement. (vi) The certificate by the Local Government Engineer, being a document of the Respondents, (Exhibit P8) was very clear in its certificate of “value of works completed to date – N35, 007,076.60″, being the entire contract works. (vii) The certificate (Exhibit P8) was unequivocal in stating that the amount due for payment to the Appellant was the sum of N18,006,369.00 which is balance, less the retention fee. (viii) The lower Court was therefore in error in holding that Exhibit P8 was the payment certificate issued by the Respondents of their representative, but rather placed, on reliance on a letter dated 8th March, 2002 (Exhibit P10) written outside the six months retention and warranty period by the Clause 4 of the Contract Agreement. (ix) There was no evidence of any complaint made by the Respondents in respect of the work executed by the Appellant within six months window for observation of defects and for retention fee. (x) Extrinsic evidence such as Exhibit P10 ought not to have been used to vary the contents of a written contract validly entered into by the parties. (xi) The interpretation placed on Exhibit P5 and P8 by the learned Justices of the Court of Appeal occasioned miscarriage of justice.
GROUND 2: ERROR IN LAW The learned Justices of Court of Appeal erred in law when they held that the Appellant failed to prove its case on balance of probabilities that it had fully executed the contract awarded with the terms of contract with the terms of the contract and thus entitled to full payment under the said contract, having due regard to the unchallenged evidence on record.
PARTICULARS OF ERROR: (i) The Appellant had testified and tendered 13 documentary Exhibits in support of its case, particularly the contract document (Exhibit P5) and the Certificate of Completion from the Respondents (Exhibit P8) (ii) The lower Court was in error in holding that the completion certificate pleaded by the Appellant in paragraph 7 of its Statement of Claim was not tendered as careful perusal of the pleadings reveals that same was Exhibit. (iii) The Respondents had abandoned their defence at the trial, and had equally failed to file a Respondent’s brief of argument at the Court below despite all opportunities afforded them so to do, as rightly found by the Court below. (iv) The Appellant’s evidence in the absence of any challenge by the Respondents was substantial and overwhelming and it was open to Court to act on such unchallenged and uncontroverted evidence, which was either inherently incredible nor offended any rational conclusion. (v) The issuance of Exhibit P8 pursuant to Exhibit P5 by the Respondents is conclusive proof that the Appellant had completely and satisfactorily executed the contract works. (vi) The duty imposed by Exhibit P5 on the Appellant is to complete the contract satisfactorily to be certified by the Respondents designed professional and expert, and having done so, the duty arose on the part of the Respondents to issue the final certificate and release the retention balance to the Appellant. (vii) The Respondents having issued the completion. certificate through their Council Engineer as provided for by the Contract Agreement are not free to resile therefrom or to disclaim certificate. (viii) The issue before the Court was a narrow one, namely whether on the evidence before the Court, the Appellant is entitled to payment in the terms of the contract agreement, having executed the contract, which the Appellant established. (ix) The Appellant is entitled to succeed on the strength of its own case as established by it, which was on preponderance of evidence. <br< p=”” style=”box-sizing: inherit;
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GROUND 3: ERROR IN LAW The learned Justices of Court of Appeal erred in law when they held that the Appellant was not entitled to an award of damages upon the interpretation outcome of the case.
Particulars of Error (i) The Appellant established that there was a breach of contract, even as the learned trial judge had found that part of the first stage payment was still being owned the Appellant, that is the sum of N6million. (ii) The Appellant had established that there was no mobilisation fee paid, and that it engaged bank facility to execute the project, with the attendant interests, occasioned by the default in payment by the Respondents (iii) The funds of the Appellant had been tied down since 2011 as a result of the default of Respondents. (iv) The Appellant is clearly entitled to damages and interests. (v) Notwithstanding that costs follow event, the costs awarded in favour of the Respondents who refused to appear in Court at all and/or failed to file any process in Court, were unreasonable and amounted to intransigence.”
Ground one is vague in that one cannot really decipher what the complaint is really about. A vague ground of appeal was defined by this Court in C.B.N. v OKOJIE (2002) 8 NWLR (Pt.768) 48 at PG 61 PARA E-F. The Court said thus:- “Vagueness of a ground of appeal may arise where it is couched ‘in a manner which does not provide any explicit standard for its being understood.
It may also be considered vague when complaint is not defined in relation to the subject or it is not particularised, or the particulars are irrelevant.” A ground of appeal is said to be vague if it is illusive, ambiguous, broad, debatable, disputable, evasive and inexact. On the other hand, a ground of appeal which is precise, concise, exact and unequivocal cannot be said to be vague since it would by this nature of clarity speak loudly of the complaint. See Lagga v Sarhuna (2008) 16 NWLR (pt. 1114) 427 a 471-472.
For a clear picture, a vague or ambiguous ground would lead one to think the error complained of is the interpretation of Clauses 4, 5.2, 5.3 and 12 of the Contract Agreement. When read further, it seems the error complained changed to the evaluation of documentary evidence on record. The effect is that one is left in doubt as to the nature of complaint in ground one. The particulars did not help out in resolving the confusion. The particulars are argumentative and narrative in nature. Particulars (i) & (ii) are argumentative in nature. They seem to complain about interpretation.
Particulars (iii) to (x) are not only argumentative, narrative in nature, they also seem to complain about evaluation of evidence on record. Particulars (x) are clearly irrelevant as it was not a decision of the Court below. The Court below did not vary the contents of any written contract between the parties.
It is now well settled in law that the ground and their particulars must be restricted to the errors complained of in the judgment. In order words, that the grounds and particulars of errors should not be framed at large. The case of Osasona v Ajayi (2004) 14 NWLR PT. 894 527 is apt in this regard. This Court held that particulars of error alleged in a ground of appeal are intended to highlight the complaint against the judgment on appeal.
They are specification of the error or misdirection in order to make clear how the complaint is going to be canvassed in an attempt to demonstrate the flaw in the relevant aspect of the judgment. The particulars of ground one are not only fundamentally defective and they also increased the confusion as to the perceived error in the judgment.
Ground 2 is prolix in nature and unwieldy. It is also vague as ground 1. One is not sure what the complaint really is whether it is the burden of proof when evidence is unchallenged or the evaluation of the evidence led by the Court. The particulars did not help resolve the confusion. Particulars (i), (ii) (v) (vi) (ix) apart from being narrative seem to dwell on evaluation of evidence while particulars (vii) & (viii) are inconsistent with the grounds. They do not relate at all to the ground. Particulars (iii) are not a complaint against the judgment.
Particulars (viii) are bad for falsity as the Court clearly decided on the question whether the Appellant is entitled to payment based on the contract. The grounds like the particulars are not framed at large. Particulars (ii) & (iii) seem to dwell on the burden of proof when evidence is unchallenged.
Again, ground 2 is repetitive of ground 1 in many respects. Particulars (ii) – (viii) are repetitive of particulars of ground 1.
It is trite that appeal is not fought on repetitive grounds but on the quality of the grounds.
Ground 3 is also vague. Several questions crop up. What is the interpretative outcome of the case? How does interpretation outcome of the case relate to damages? Particulars (v) are inconsistent with the ground. Is the complaint about damages and/or interests? One cannot decipher. Particulars (i) was not a decision of the Court of Appeal. The Court did not find as a fact that the Respondent breached the contract. Thus, the complaint is at large. The particulars are also argumentative which is not permitted by the rules of this Court.
It is settled law that particulars of a ground cannot be different from the grounds because they form part and parcel of the complaint. The particulars of a ground are only meant to be an addendum. See Mba v Agu (1999) 1 NWLR (PT.629) SC1.
This Court in Globe Fishing Industries Ltd v Coker (1990) NWLR (PT.162) 265 S.C 3000 F-G reiterated the principle thus:- “The particulars and nature of the error or misdirection alleged in Order 8 Rule 2 (2) are the specific reasoning, finding or observations in the judgment relating to or projecting the error or misdirection complained of They are in the sense the itemisation of the error or misdirection in the judgment or ruling. Particulars required are not the arguments or narratives that should be proffered at the hearing of appeal to establish that the Court erred or misdirected itself.
They should not also be independent complaint from the ground of appeal but ancillary to it.”
Ground 3 is also bad for falsity as the Court of Appeal affirmed the award of damages by the trial Court. Damages were awarded on the Six Million Naira proved. The ground does not flow from the judgment of the Court below. The ground is framed at large. See Co-operative & Commerce Bank Plc v. Ekperi (2007) 3 NWLR (PT. 1021) 282.
Confusing grounds of appeal will only bring about confusing issues. The issues purportedly formulated by the Appellants are as follows: “Was the Court below right in its interpretation of Clauses 4,5.2,5.3 and 12 of the Contract Agreement (Exhibit P5) when they came to the conclusion that the Appellant was not entitled to full payment of the contract sum (Arising Grounds 1 & 2)? Was the Court below right when it held that the Appellant was not entitled to an award of damages inclusive of interests on the sum owed the Appellant by the Respondents? (Arising from Ground 3)”
Issue one formulated from grounds 1 and 2 seem to talk about interpretation. The issue is formulated outside the said ground as particulars of error of interpretation were not given in the said grounds. That is not allowable. See the case of Adah v. Adah (2001) 5 NWLR (PT.705) page 1. The issue can only be discountenanced in the circumstances. The complaint of the Appellant against the judgment of the Court below as distilled from issue one is that there was a perceived error in the interpretation of the contract which led to wrong findings of fact.
But the Appellant proceeded to fault the evaluation of evidence by the Court below in the body of the brief. It is clear that the perceived error in evaluation of evidence as argued by the Appellant did not flow from the error in interpretation. Thus, since the issue distilled from grounds 1 and 2 is the perceived error in interpretation by the lower Court, this Court cannot enquire as to whether evidence were properly assessed by the lower Court because the rationale behind the formulation of issues is to narrow the field of dispute.
It is to narrow the issues in the grounds of appeal filed in the interest of accuracy, clarity and brevity.
Once issues for determination are formulated, it supersedes the grounds of appeal. See Abayomi v. A.G. Ondo State (2006) 8 N.W.L.R (PT. 982) 211.
It is more so since issue one is distilled from both ground 1 and 2 of the notice of appeal. It is now trite that where an incompetent ground of appeal is argued together with those formulated from competent grounds, the issue will be deemed incompetent because the Court cannot sift that which is competent from the incompetent ones.
See Ngige v Obi (2006) 14 N.W.L.R (PT.999) lat 165 Para E-H this Court endorsed this exposition of the principle by Per Salami J.C.A in the unreported case of Korede v Adedokun thus: “This is the mixed grill served and I am of the firm view that it is not the business of the Court to sift chaff from grain by performing a surgical operation on the appellant’s brie to extract argument in respect of valid grounds from the invalid ones, as such exercise may involve the Court in descending into the arena and the dust arising therefrom may of necessity becloud its judgment.
The duty of the Court is that of an umpire whose functions in the interest of justice is to tend the rope and not to step into the brawl by exercising argument on good grounds of appeal from those of bad ones. See also Honika Sawmill (Nig) Ltd v. Harry Okojie Hoff (1994) 2 NWLR (pt. 326) 252 at 262, Nwadike v Ibekwe (1987) 4 NWLR (pt. 67) 718.”
Issue two formulated out of ground 3 is strange to the decision of the Court of Appeal because the Court only affirmed the position of the trial Court that the Appellant was only entitled to N6 Million Naira at the interest rate of 10% per annum. What then is the sum owed and what then is the interest? The Appellant did not prove he was entitled to the sum claimed. That is the decision of the Court below. If he at the Court below establish same, there cannot be no complaint about damages that was not awarded.
It has to be pointed that the Court can raise the issue suo motu, of the incompetence of an appeal. In Abubakar v Joseph (2008) 13 NWLR (PT.1104) 307, this Court held that where no objection is raised to the competence of the grounds of appeal filed by the Appellant, the Court on its own can raise the issue.
The issues formulated being vague are clearly irrelevant to this appeal. It makes it difficult for the Court to determine the real issue in controversy. It makes the hearing of the appeal difficult as it is trite law that a respondent to an appeal cannot formulate issues for determination outside the grounds of appeal filed by the Appellant. Justice can not be done as between the parties when the Respondent is at a loss as to the complaint of the Appellant. The door of justice is open to genuine complaints as otherwise a waste the precious time of the Court will ensue.
Even the cry that substantial justice demands that the appeal should still be heard would not save the appeal. This much was stated by Per Achike J.S.C in Calabar East Co-op. v Ikot (1999) 14 NWLR (pt. 638) 225 at 247 Para C: “Pronouncements or decisions made on incompetent issues or defective grounds of appeal cannot advance the appellants’ case, not even the interest of Justice nor, our jurisprudence, one jot, because, at best, such pronouncements are mere obiter dicta.
Stricto sensu, an appellate Court lacks jurisdiction, in the sense of competence to entertain an appeal which is not fought on valid grounds of appeal. See Godwin v C.A.C (1998) 14 NWLR (pt.584) 16 SC and Kala v Potiskum (1998) 8 NWLR (pt. 540) 1 SC.” From the foregoing, it is evident that there is no point belabouring the issues which have on their own been determined as stemming from incompetent grounds of appeal.
This Preliminary Objection has merit and I uphold it. The Notice and Grounds of Appeal are struck out on account of incompetence. I abide by the consequential orders made.
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN, J.S.C.: This appeal illustrates the importance of proper drafting of grounds of appeal and the sometimes devastating effect of failure to comply with the applicable rules in that regard.
Order 8 Rule 2 (3) and (4) of the Supreme Court Rules, as amended, provides: “(3) The notice of appeal shall set forth concisely and under distinct heads the grounds upon which the appellant intends to rely at the hearing of the appeal without argument or narrative and shall be numbered consecutively. (4) No ground which is vague or general in terms, which discloses no reasonable ground of appeal shall be permitted, save the general ground that the judgment is against the weight of evidence, and any ground of appeal or any part thereof which is not permitted under this rule may be struck out by the Court of its own motion or on application by the respondent.” The rules of Court providing for the form and content of a notice of appeal are meant primarily to assist the Court and the respondent to discern, in a concise manner, the nature of the complaint from the decision appealed against.
While it is trite that rules of Court are meant to be obeyed, this Court has usually taken a liberal approach to a complaint that grounds of appeal are not in conformity with the rules, where it is nonetheless possible to identify the nature of the complaint or, to put it in another way, where despite the fact that the grounds of appeal are inelegantly drafted, neither the Court nor the respondent is misled as to the real nature of the complaint. This is in conformity with the Court’s desire to do substantial justice in the appeal before it and not to jettison an appeal on technical grounds.
See Sosanya vs Onadeko & Ors (2005) LPELR – 3105(SC) @ 25 B – C; (2005) 2 SC (Pt. 11) 13, Aderounmu vs Olowu(2000) 4 NWLR (Pt. 652) 253, Oleksandr & Ors Vs Lone Star Drilling Co. Ltd. & Anor (2015) LPELR – 24614 (SC) @ 26A, Ogboru vs Uduaghan (2012) 11 NWLR (Pt. 1311) 357 @ 380 B- D. The leaning of the Court in favour of doing substantial justice must, however, never be taken for granted. In the instant appeal, the grounds of appeal along with their particulars reveal an apparent confusion in the mind of learned counsel who drafted them as to the aspect of the judgment he intends to challenge.
I agree with the analysis of the grounds of appeal as done by my learned brother, Ibrahim Mohammed Musa Saulawa, JSC in the lead judgment and agree that no amount of ingenuity can assist the Court or the respondent to decipher the actual complaint in grounds 1 and 2 against the judgment of the lower Court. Learned counsel should be wary of prolixity in the drafting of grounds of appeal and their particulars, as they run into the danger of obfuscating the real nature of the appellant’s complaint, as in this case.
As regards ground 3, it is wholly unrelated to the decision of the lower Court. The complaint is that the Court erred when it held that the appellant was not entitled to an award of damages upon “the interpretation of the outcome of the case.” Apart from being vague, the lower Court, in fact, affirmed the finding of the trial Court that the appellant was entitled to the sum of N6 million being the balance of 60% first installment as approved by the Executive Committee of the 1st respondent, which he proved successfully.
For a ground of appeal to be competent, it must be derived from the ratio decidendi of the decision appealed against. See Oleksandr Vs Lone Star Drilling Co. Ltd. & Anor (Supra), Dalek Nig. Ltd. vs Ompadec 2007 ALL FWLR Pt. 364 204.
Unfortunately, this appeal has no saving grace, as although the three grounds of appeal are couched as ‘error in law”, a careful examination thereof reveals that all the grounds are of mixed law and fact, for which prior leave ought to have been sought and obtained in compliance with Section 233 (3) of the 1999 Constitution as amended. The failure to obtain leave where leave is required, renders the notice of appeal null and void. See Nwagbara vs Jadcom Ltd. (2021) LPELR – 55329 (SC) @ 10 C – E, Chrome Air Services Ltd. & Ors Vs.
Fidelity Bank (2017) 12 SC (Pt. 111) 57; (2017) LPELR – 43470 (SC) @ 8 D – E; Fasuyi vs P.D.P. (2017) LPELR – 43462 @ 10 – 12 C – A.
On the whole, I agree with my learned brother, Saulawa, JSC that the appeal is incompetent and it is accordingly struck out. I abide by the order on costs contained in the lead judgment.
MOHAMMED LAWAL GARBA, J.S.C.: I am in full agreement with the views expressed by my learned brother, Hon. Justice Ibrahim Mohammed Musa Saulawa, JSC, in the lead judgment, which I read before today, that all the three (3) grounds contained on the Appellant’s Notice of Appeal are generally vague, unwieldy and prolix such that the real grievance or complaint against the decision by the Court below in each of them is uncertain, obfuscated and unspecific to be readily discernable.
The grounds offend and are in contravention of Order 8, Rules 2 (3) and (4) of the Supreme Court Rules (as amended) 2014 which provide that:-
“2.(3) The notice of appeal shall set fourth concisely and under distinct head, the grounds upon which the appellant intends to rely at the hearing of the appeal without any argument or narrative and shall be numbered consecutively. (4) No ground which is vague or general in terms which discloses no reasonable ground that of appeal shall be permitted, save the general ground that the judgment is against the weight of evidence, and any ground of appeal or any part thereof which is not permitted under this rule may be struck out by the Court of its motion or on application by the respondent.” The grounds of appeal do not disclose reasonable grounds of appeal for being in general terms and vague and so liable to be struck out.
See Honika Sawmill Nig. Ltd. v. Hoff (1994) 2 NWLR (pt. 326) 252, Nsirim v. Nsirim (1990) 3 NWLR (pt. 138) 285, Doma v. INEC & Ors. (2012) 7822 (SC).
I join the lead judgment in striking out the grounds as well as the appeal for being incompetent.
EMMANUEL AKOMAYE AGIM, J.S.C.: I had a preview of the judgment of my learned brother, Lord Justice, IBRAHIM MOHAMMED MUSA SAULAWA, JSC.
I completely agree with the reasoning, conclusions, decisions, including the orders therein.
Appearances
NATICEL PETROLEUM LTD v. NEPAL OIL & GAS SERVICES LTD
On Tuesday, February 08, 2022
CA/A/824/2017Before Their Lordships
Elfrieda Oluwayemisi Williams-Dawodu Justice of the Court of Appeal
Danlami Zama Senchi Justice of the Court of Appeal
Between
Judgment
ELFRIEDA OLUWAYEMISI WILLIAMS-DAWODU, J.C.A. (Delivering the Leading Judgment) : This appeal arose as a result of the Judgment of the Federal Capital Territory (FCT) High Court in Suit FCT/HC/CV/574/2014, delivered by Hon. Justice A. B. Mohammed on November 6th, 2017 wherein the Court found in favour of the Respondent (the Plaintiff at the Court below) and granted the reliefs sought.
See pages 342- 360 of the printed Record before this Court. From the facts garnered in the Record, the Respondent, a major importer and marketer of petroleum products within the downstream sector of the petroleum industry, sometime in December 2010, agreed to fund the importation of 30,000 Metric Tons (MT) of Petroleum Motor Spirit (PMS) for the Appellant who was given the allocation for importation for the 1st quarter of 2011. The Respondent is a major customer of Sterling Bank with trade facility running into an excess of USD100,000,000 (One Hundred Million Dollars).
According to the Respondent, its commitment was based on the Petroleum Product Pricing Regulatory Agency (PPPRA) letter of September 30th 2010 in favour of the Appellant. The Respondent set the machinery into motion on behalf of the Appellant, paid for the requisite charges for FORM M for the importation of 30,000 MT and caused inflow of funds into the Appellant’s account at various times to fund the letter of credit for the importation.
The 30,000 MT of PMS was imported and sold in line with the PPPRA’s mandate at commercial rate and the subsidy element to be paid within the confines of the Petroleum Support Fund (PSF) Scheme. The commercial proceeds according to the Respondent were paid to liquidate the letters of credit and the subsidy element was not paid as at when due until about 4-5 months beyond statutory period as opposed to Forty-five (45) days when subsidy payments are normally paid.
As the subsidy payment on the 30,000 MT of PMS was not made as at when due, the Respondent claimed to have suffered liability in terms of accumulated interest on the trade finance facilities used for the importation of the PMS for the Appellant. And in line with its practice, the PPPRA Debt Management Office with the Federal Ministry of Finance computed and assessed the foreign exchange as well as interest rate differentials as Ninety-two Million, Three hundred and Forty-two Thousand One Hundred and Fifty-seven Naira, Eighty-nine Kobo (N92,342,157.89K).
It instituted an action against the Appellant for recovery of the said sum after persistent demands without payment from the Appellant. It is important to state that the matter went to trial the Respondent called Four (4) witnesses and tendered Eight (8) Exhibits in support of its case. The Appellant on the other hand withdrew its Counter-claim and rested its case on that of the Respondent. Judgment was given in favour of the Respondent. The following were the claims of the Respondent at the Court below: a.
A declaration that the Plaintiff is entitled to be paid the sum of N92,342,157.89k (Ninety Two Million, Three Hundred and Forty Two Thousand, One Hundred and fifty Seven Naira, Eighty Nine Kobo) being interest and foreign exchange differentials by the Debt Management Office on importation of 30,000 Metric Tonnes of Petroleum Motor Spirit (PMS) under the 1st quarter of 2011 (QI 2011) which the Plaintiff financed on behalf of the Defendant. b.
And (sic) Order for payment to the Plaintiff the sum of N92,342,157.89k (Ninety Two Million, Three Hundred and Forty Two Thousand, One Hundred and Fifty Seven Naira, Eighty Nine Kobo) already computed by the Debt Management Office on importation of 30,000 Metric Tonnes of Petroleum Motor Spirit (PMS) under the 1st quarter of 2011 (QI 2011) which the Plaintiff financed on behalf of the Defendant. c. Cost of the action. As already stated, judgment was given in favour of the Respondent, hence the instant appeal, the Appellant being aggrieved.
The Appellant’s Notice and Four (4) grounds of Appeal dated November 14th 2017 was filed November 15th, 2017. In the main the following relief is being sought by the Appellant: a. An order allowing this Appeal and setting aside the Judgment of the lower Court delivered on the 6th day of November, 2017. See pages 362 -366 of the Record. In compliance with the Rules of this Court, the Appellant’s brief of argument dated and filed February 6th 2018 which was deemed as properly filed and served on September 16th 2021, settled by Lawrence Alabi Esq. was adopted at the hearing of this appeal.
He urged that the appeal be allowed. On behalf of the Respondent, its brief dated April 2nd 2018, filed April 18th 2018, deemed as properly filed and served was settled by D.A. Awosika SAN, who urged that the appeal be dismissed. Parties donated Issues for determination of the appeal thus: ISSUES BY THE APPELLANT 1. Was the learned trial Judge wrong when he held contrary to the provision of Section 131 (1) & (2) of Evidence Act and granted Judgment to the Respondent without proof in support of their case. 2.
Did the learned trial Judge err in law when he held that from the unchallenged and uncontroverted oral and documentary evidence led by the Respondent in this case (sic). Thereby held that the Respondent has proved his (sic) case against the Appellant on the balance of probabilities while the documentary evidence admitted by the Court are manifestly contradictory. 3. Did the learned trial Judge err in law and exceeded (sic) his jurisdiction when the Respondent without evidence in proof of facts and material element of his (sic) case, found that the Respondent is entitled to Judgment. 4.
Did the learned trial Judge exceed his jurisdiction when he ordered that the appellant should pay the sum of N92,342,157.89k (Ninety Two Million, Three Hundred and Forty Two Thousand, One Hundred and fifty Seven Naira, Eighty Nine Kobo) being interest and foreign exchange differentials on importation of 30,000 metric tons of Premium Motor Spirit (PMS)under the 1st quarter of 2011 (QI 2011). LONE ISSUE BY THE RESPONDENT “Whether the judgment entered in favour of the Respondent by the lower Court is proper having regard to the pleadings and evidence led.
Having very carefully read the issues by the parties, one is satisfied that a lone issue will suffice for the just and fair determination of this appeal. The issues by the Appellant, with respect all seek the same thing and can be compressed into one. I shall adopt the lone issue by the Respondent reformulated as follows: Whether or not the Court was right to have found in favour of the Respondent given the evidence placed before it”.
SUBMISSIONS ON BEHALF OF THE PARTIES APPELLANT’S SUBMISSION The learned Counsel for the Appellant submitted that the Respondent failed to prove its case as it did not present any material evidence empowering it by the Appellant to fund the importation of 30,000 metric tons of PMS for the 1st quarter of 2011 and cited in support the cases of AGBI V. OGBE 2006 NSCQR 1257 1277, CHIEF CLEMENT OBIJIAKU V. J.B.ONUHA OFFIAH 1995 7 SCNJ 142 and H.R.H. OBA L.B. OMOBORINOLA V. MILITARY GOVERNOR ONDO STATE 1998 12 SCNJ 192.
He submitted that no matter how brilliant the submission of Counsel may be, it cannot take the place of evidence and that it was necessary that the Memorandum of Understanding (MOU) allegedly signed by the two parties should have been tendered at the Court below in proof of the Respondent’s case. In support, he cited the cases of NIG. ARAB BANK LTD. V FELLY KEME LTD. 1995 4 NWLR PT. 387 100 and CHUKWUJEKU V.
OLALERE 1992. He asserted that the permit to import given to the Appellant was in respect of 15,000 MT of PMS only which contradicted the 30,000 MT as pleaded by the Respondent and that Exhibit PW2E which was tendered without any objection from the Respondent was proof of the 15,000 MT. He submitted that the Court should have acted on it without need for further proof from the Appellant and cited in support the case of GOVERNMENT OF AKWA IBOM V. UMA 2006 FWLR PT. 110 P. 1793.
He argued that apart from PW2E, PW3A showed a different sum for the foreign exchange differentials as One Hundred and Thirty- one Million, Seven Hundred and Twenty-six Thousand, Three Hundred and Thirty -eight Naira, Eighty Nine Kobo (N131,726,338.89k). That the Court was wrong to have admitted the Exhibits with the contradictions as it ought not to speculate or make a new contract for the parties and cited in support the cases of ADESOYE OLANLEGE V. AFRO CONTINENTAL NIG. LTD. 1996 7 NWLR PT. 458 29, FAKOREDE V. A-G WESTERN STATE 1972 1 ALLNLR PT.1 178 and IKENYE V.
OFUNE 1988 2NWLR PT. 5 1. Further he submitted that, the burden to explain the difference in the two sums was on the Respondent which it failed to do. The learned Appellant’s Counsel submitted that the Court exceeded its jurisdiction to have ordered that the Appellant should pay the Respondent the alleged sum and that the parties were bound by the terms of their contract and in support cited the cases of SERGIUS ONYKWELU V. ELF PETROLEUM NIG. LTD. 2009 ALL FWLR PT. 469 428 and IDONIBOYE-OBU V. NNPC 2003 4 MJSC 131.
He argued that failure to tender the said MOU in Exhibit PW3A was critical to the case of the Respondent and cited in support the cases of FRAMO NIG. LTD. V. DAODU 1993 3 NWLR PT. 281 372 and Section 167 (d) of the Evidence Act 2011 in respect of the non-production of the MOU. In conclusion, he urged that the appeal be allowed and the judgment of the Court below set aside. RESPONDENT’S SUBMISSION The learned Respondent’s Counsel submitted that the appeal is unmeritorious, that the Respondent established its case and is entitled to judgment as given by the Court.
He asserted that the Respondent supported its case with Four (4) witnesses and Exhibits PW1A, the PPPRA’s letter of allocation to the Appellant to supply 30,000MT of PMS which the Respondent financed, Exhibit PW2A, PW2B, PW2C, PWD, PW2E and PW2F, especially the testimony of PW2 and PW3 and that the decision of the Court was based on evidence and cannot be faulted. In support he cited the case of OGUNLEYE V. ONI 1990 2 NWLR PT.135 745.
He argued that the Appellant never denied the accuracy of the entries in the statements of account served on it by Sterling bank and cited the case of SKYE BANK PLC. V. MRS JADESOLA KUDUS 2011 LPELR-4962 CA in support. He submitted that the oral evidence of PW2 and PW3 in respect of the agreement between the parties was rightly allowed by the Court in proving the contents of the MOU that was lost and cited the cases of ONWUGBELU V. EZEBUO & ORS. 2013 LPELR- 20401 CA and ALLI V. IKUSEBIALA 1985 1 NWLR 4 630.
That, the evidence of the Respondent was not discredited, remained unchallenged and that the Appellant rested its case on it. Therefore he submitted that, minimum evidence was required from the Respondent and that the case of the Respondent was found more probable. In conclusion, he prayed that the findings of the Court be not disturbed and urged that the appeal be dismissed and the judgment of the Court be affirmed. THE POSITION OF THE COURT The issue involved in this appeal in my view and humbly would appear clear and straight forward.
The Appellant as contained in its processes before this Court is of the position that the Respondent failed to prove its case with credible and cogent evidence. That it should not have been granted its claims by the Court, particularly as it failed to produce the alleged MOU it claimed was voluntarily signed by both parties on the importation of the 30,000 tons of PMS. It is further the Appellant’s position that it had allocation to import only 15,000 MT of PMS and therefore did not owe the Respondent as claimed.
The Respondent on the other hand argued that it undertook by agreement to finance the importation of the 30,000 MT of PMS given to the Appellant and incurred expenses in respect thereof which were yet to be completely defrayed, hence the suit at the Court below. I shall proceed to consider the sole Issue adopted through the findings of the Court having very carefully studied the Record and all the processes by the parties placed before the Court. For ease of reference, the Issue is hereunder reproduced.
SOLE ISSUE Whether or not the Court was right to have found in favour of the Respondent given the evidence placed before it. The law is beyond settled that in civil matters, the burden of proof rests on the party who asserts a fact and whose case will fail if such assertion is not proved. The standard of proof remains the preponderance of evidence or balance of probabilities. A party is not allowed to rely on the weakness of the defence of the other party but must establish his case with clear, cogent and credible evidence. see the cases of YAKUBU V.
JAUROYEL 2005 ALL FWLR PT. 283 184, LONGE V. FBN PLC. 2006 3 NWLR PT. 967 P. 228 and OKUBULE V. OYAGBOLA 1990 4 NWLR PT. 147 P. 723. The trial Court is the Court that has the privilege and opportunity to deal with both facts and law in respect of matters before it, as it listens to witnesses and watches their demeanor. The Appellant herein at the trial did not field any witness to testify, orally adopt its pleading and the position of the law is clear in that regard.
It remains the law that pleadings however strong and convincing the averments may be, without evidence of proof thereof go to no issue. A mere averment in pleading proves nothing unless admitted. Therefore, in addition to pleading relevant facts, the Plaintiff must adduce evidence at the trial in proof of the relevant facts. Where there is no evidence in proof of the facts then the pleadings are deemed abandoned. The apex Court aptly described the situation of pleadings without oral evidence in the case of OJOH V.
KAMALU 2005 24 NSCQR VOL. 24 P. 256 per Tobi JSC as he then was thus: “…not being human beings, have no mouth to speak in Court and so they speak through witnesses. If witnesses do not mandate them in Court, they remain moribund, if not dead at all times and for all times, to the procedural disadvantage of the owner, in this context the appellant.” See further the cases of A. G. FERRERO & CO. LTD. V. HENKEL CHEMICALS NIG. LTD. 2011 LPELR-12, IMANA V. ROBINSON 1979 3- 4 SC and UNION BANK OF NIG. PLC. V. ASTRA BUILDERS W.A LTD. 2010 LPELR 3383 SC.
The sworn statement of the parties ought to be adopted in open Court as the oral evidence of the party. One recalls that the procedure by which the sworn statement on oath of a party is adopted at trial by a party under oath came about as part of the efforts in the administration of justice system as one of the ways and means to reduce trial times and bring about speedy dispensation of justice.
Therefore, once a party adopts his sworn statement together with any exhibits he may wish to tender having duly followed the process as per the Rules of the particular Court, cross-examination can commence. The Appellant at trial at the Court below opted not to call any witness and rather rested its case on that of the Respondent.
As correctly stated by the Court, the position with that option was precarious, as the Appellant’s case would be seen from the case presented by the Respondent and by the Respondent’s evidence. The Court in its evaluation made the following findings: That, the Respondent was able to support its story with evidence cogent and credible. It found Exhibit PW1A, dated December 30th 2010, the letter of allocation/permit to the Appellant to import 30,000 MT of PMS as supportive of the oral evidence of the PW3 that the Appellant was given the permit to so import in the 1st quarter of 2011.
Exhibit PW2C, the statement of account showed that the Respondent as claimed, credited the account of the Appellant with Sterling bank in the amounts stated therein within the period in respect of the letter of credit for the execution of the claimed importation. The Exhibit supported the evidence of the PW2, one Olanrewaju, Group Head in charge of Corporate & Structured Finance Department, Sterling bank and the PW3, the Managing Director of the Respondent on pages 307 to 318 respectively.
There is Exhibit PW2D, the letter from Sterling bank dated May 18th 2011 which confirmed that the bank established a letter of credit in favour of one Vitol S.A. on behalf of the Appellant for the importation of the 30,000 MT of PMS, Exhibits PW2A and PW2B, copies of FORM M and the Letter of Credit in favour of Vitol S.A by the bank on behalf of the Appellant.
The Respondent tendered further, Exhibit PW1E, copy of the import permit issued to the Appellant by the Department of Petroleum Resources dated November 23rd 2010 and Exhibit PW3A, the Respondent’s letter dated September 8th 2014 to the Appellant on the outstanding money and the Summary of Interest Charges and Forex Differentials Computation on delayed claims for 2011 submitted to the Debt Management Office for payment which supported PW3’s assertion in her witness statement on oath. The Court found and stated as follows in respect of the foregoing documents on page 358 of the Record: “Clearly all the above documentary exhibits (Exhibits PW1A, PW2A, PW2B, PW2C, PW2E, PW2F, PW3A and PW4A) support the oral evidence of the Plaintiff’s witnesses, especially the testimonies of PW2 and PW3.” One cannot agree more with the Court as well as its position on the non-tendering of the MOU between the parties by the Respondent.
That, the non-presentation of the MOU which the Respondent claimed was lost and could not be found, was not fatal to its case as there were other pieces of evidence in preponderance in support of the case of the Respondent. Through the gamut of the Record, there was no finding that the evidence by the Respondent was debunked at cross-examination by the Appellant.
In consequence the Court held and correctly in my view and humbly thus on page 359 of the Record: “From the unchallenged and uncontroverted oral and documentary evidence led by the Plaintiff in this case, I hereby resolve the sole issue for determination in this case in the affirmative and hold that the Plaintiff has proved its case against the Defendant on the balance of probabilities.” And it therefore entered judgment for the Plaintiff against the Defendant. The two most significant aspects of a claim are pleadings and the evidence in proof thereof.
The evidence in proof must align with the pleadings as in the case of the Respondent herein otherwise it would serve no useful purpose. See the cases of AWUSE V. ODILI 2005 16 NWLR 444, BALOGUN V. AMUBIKANHAN 1985 3 NWLR PT. II 27 and CBN V. JIDDA 2001 5 NWLR PT. 705 165. In my considered view and humbly, the findings of the Court cannot be disturbed as they meet the justice of the issues involved. In that regard, one therefore resolves the sole issue herein against the Appellant. In the result, this appeal cannot be allowed it fails and therefore is accordingly hereby dismissed.
Consequently, the Judgment of the Court below delivered by Hon. Justice A. B Mohammed on November 6th 2017 is hereby affirmed.
PETER OLABISI IGE, J.C.A.: I had the privilege of reading in advance the draft judgment of my learned brother, ELFRIEDA O. WILLIAMS- DAWODU, JCA. I agree with my learned brother that the appeal lacks merit, it fails and is accordingly dismissed. I also affirm the judgment of the lower Court delivered by HON. JUSTICE A. B. MOHAMMED on the 6th day of November, 2017.
DANLAMI ZAMA SENCHI, J.C.A.: I was privileged to read in draft the judgment of my learned brother, ELFRIEDA O. WILLIAMS-DAWODU just delivered, and I agree with the findings and conclusions reached therein that this appeal lacks merit and I dismiss it as well. The judgment of the lower Court in Suit No. FCT/HC/CV/574/2014 delivered on 6th November, 2017 by A. B. Mohammed, J. is hereby affirmed.