UREDI v. DADA
On Friday, the 12th day of February, 1988
Suit No: SC.106/1986Before Their Lordships
Between
Before Their Lordships
AUGUSTINE NNAMANI Justice of the Supreme Court
MUHAMMADU LAWAL UWAIS Justice of the Supreme Court
CHUKWUDIFU AKUNNE OPUTA Justice of the Supreme Court
ABUBAKAR BASHIR WALI Justice of the Supreme Court
EBENEZER BABASANYA CRAIG Justice of the Supreme Court
Between
S. A. UREDI (APPELLANT)
v.
JACOB O. DADA (RESPONDENT)
…………………….A…………………….
Craig, JSC. The Plaintiff’s claim in the High Court of Lagos State was as follows:-
“The Plaintiff’s claim against the Defendants jointly, severally or in the alternative is for sum of N100,000.00 (One Hundred Thousand Naira) being special and general damages for breach of an oral contract when in or about January, 1976 at Lagos the Defendants induced the Plaintiff to hand over to them sum of N50,000.00 (Fifty Thousand Naira) which they promised they would refund back to him upon the completion of the contract which they claimed they were then executing at or around the Festival Village along Badagry Road which they told the Plaintiff was bringing them large amounts of profits which they promised they would share with the Plaintiff. The Defendants have since completed the contract but have only after persistent demands refunded to the Plaintiff N4,000.00 (Four Thousand Naira) out of the said N50,000.00 (Fifty Thousand Naira) leaving a balance of N46,000.00 (Forty Six Thousand Naira) which they refused and or neglected to pay nor have they given the Plaintiff any share of the profits as promised.”
Pleadings were ordered and exchanged; and thereafter the case went on to trial. At the hearing, the Plaintiff gave evidence that he and the 1st Defendant had been close business associates in the North, later when the 1st Defendant was transferred to Lagos, the Plaintiff saw him in December 1975 and had discussions about doing further business together. They subsequently concluded an oral agreement involving N50,000.00. The Plaintiff gave the following particulars of the agreement in his evidence:
“The first Defendant told me he had a personal contract awarded to him at the Festival Village. He told me the job was a big and profitable one… He then suggested that I should bring some money towards the execution of the job and both share the profits. He told me that within 3-4 months I would be very rich as the contract was a profitable one.
I asked him how much he wanted me to deposit for the contracts. He asked me for N50,000.00.
He further assured me that he was being paid monthly for the contract and that at the end of each month he would share the profit with me until the completion of the job when the N50,000.00 would be refunded to me”
The Plaintiff returned to his base in Zaria and by February 1976, he had paid the 1st Defendant a total sum of N50,000.00. The Plaintiff testified further:-
“According to the agreement between us I was to receive my first share of the profits at the end of March, 1976. At the end of March, the 1st Defendant did not give me my money. The same thing happened at the end of April, 1976 It was towards the end of July, 1976 that the 1st Defendant gave me some money.”
…………………….B…………………….
Altogether the Plaintiff has been paid the sum of N13,000.00 and he now claims the balance of N37,000.00 in addition to the profits accruing to him on the money invested in the business. At some stage in the execution of the transaction, the Plaintiff pressed for a written acknowledgement of the moneys which he had paid, and the 1st Defendant sent him a letter Exhibit B which he signed as Managing Director of a Company and which tended to portray that the Plaintiff had business dealings with Messrs Ferou (Nigeria) Ltd. The letter reads as follows:-
“FEROU (NIGERIA) LIMITED
Building & Civil Engineering Contractor Office: 3 Hall Lane
Apapa
Our Ref. PZ41/2/76 14th February, 1977
Mr Dada,
Dada Press,
Zaria.
Dear Sir,
I wish by medium of this letter to advise you that we have got some vital information about our debt outstanding with DAAS PILING & Construction Company. We have a hint from a very reliable source that the Federal Government might pay DAAS all that the Company is due probably by March. (Date not specified)
I hope that when the company is paid, they will be in a position to settle the debt which is being owed to FEROU (Nig.) Ltd.
At this point, I wish to remind you that the four thousand Naira (N4,000.00) which I have personally advanced to you will henceforth be regarded as having been taken from your initial capital contribution of N50,000.00. Thus your new capital now will be N46,000.00.
We are doing everything to recover our total debt from DAAS PILING and Constructions and as soon as this is recovered your own share (i.e. Capital of N46,000.00) plus profit will be remitted to you with all dispatch.
Thanks,
(SIGNED)
(S.A. UREDI) MANAGING DIRECTOR”
…………………….C…………………….
The Plaintiff was puzzled at the tone of the letter and he questioned the 1st Defendant about it. The Defendant told him that the Company was his and that he was its Managing Director, When the Plaintiff protested further that he had no transaction with any Company; the 1st Defendant’s retort was to ask whether the Plaintiff was more concerned about the refund of his money or about the existence of the Company.
In his evidence, the Plaintiff denied any knowledge of this Company. He stated:-
“I had no dealings with any Company. The 1st Defendant never told me he had a Company, All my transactions were with the 1st Defendant. It was the 1st Defendant that got the money from me.
I know nothing about DAAS COMPANY at the time I gave the N50,000.00 to the 1st Defendant. It was when I got Exh. “B” that I first know of the existence of DAAS COMPANY Ltd, I do not know anything between the 1st Defendant’s Company and DAAS COMPANY LTD”
In the Statement of Defence the 1st Defendant denied ever owing the Plaintiff any sum of money and in paragraph 8 of the Amended Statement of Defence he pleaded as follows:-
“With reference to paragraph 14 of the Statement of Claim, the Defendants say that at all material times the Plaintiff knew that the 1st Defendant acted only as the Managing Director and agent of the 2nd Defendant. The Defendants will therefore contend at the trial of this suit that the 1st Defendant is personally a stranger to the transaction which is the cause of this action. Alternatively, the 1st Defendant will adopt the defence of the 2nd Defendants,” (italics mine).
On its own part, the 2nd Defendant also made similar averment. In paragraph 3 thereof, it pleaded as follows:-
“The 2nd Defendant refer to paragraph 14 of the Statement of Claim and say that they are strangers to the contract which is the cause of this action and are therefore not liable to the Plaintiff thereupon. Alternatively, the second Defendants pleaded as hereinafter averred.”
In the subsequent paragraphs of the Statement of Defence the 2nd Defendant averred that:
1. That the oral agreement was made between the Plaintiff and the 2nd Defendant.
2. That the Plaintiff agreed to join the 2nd Defendant in executing a contract in which the 2nd Defendant had been asked to supply sand and gravels to another company. Daas Piling & Construction (Nig.) Company Ltd.
3. When Daas Ltd, failed to pay for the goods supplied, both the Plaintiff and 2nd Defendant mutually agreed to stop the supply. (para. 12)
…………………….D…………………….
4. The said Daas Coy. Ltd. now owed the partnership the sum of N72,175,20 which amount was admitted in a letter dated 6th October 1976 written by Solicitors to Daas Coy. Ltd. (para. 23)
5. The 2nd Defendant has sued Daas Coy. Ltd. in Suit No. LD/800.77 at the Lagos High Court.
The Statement of Defence was rounded up in this manner:
“27. The Defendants say that the 2nd Defendants duly executed the oral contract between the Plaintiff on the one part and the 2nd Defendant on the other, which was to invest the sum of N50,000.00 in a sub-contract they were executing at the Festac Village, with Daas, Piling and Constructions (Nig.) Ltd. as the main contractor, with a view to sharing profits.”
“28. …”
“29. With further reference to para 13 of the Statement of Claim, the Defendants say that the agreement to share profits was between the Plaintiff and the 2nd Defendants only, but that the profit (which has not as yet been determined) and the capital contribution (of which the Plaintiff now has a balance of N37,000.00) have not been paid by the main contractors.”
It will be seen from the pleadings filed and the evidence led, that the issues which the trial Judge had to decide were
1. Who the parties to the contract were; that is, did the Plaintiff enter into the oral agreement with the 1st Defendant or the 2nd Defendant?
2. Could the Plaintiff recover his capital from the Defendants when the contract money had not been paid?
After listening to both parties, the learned Judge in a considered judgment found that the agreement to contribute N50,000.00 was made between the Plaintiff and the 1st Defendant only. He also found that the Plaintiff had no business connection what so ever with the 2nd Defendant. He therefore awarded the Plaintiff the sum of N37,000.00 claimed, plus N10,000.00 as profits. He dismissed the claim against the 2nd Defendant. The 1st Defendant was dissatisfied with that judgment and appealed to the Court of Appeal on several grounds. In its judgment, the lower Court affirmed the award of N37,000.00 to the Plaintiff but by a majority decision, it dismissed the claim for N10,000.00 profits. There has been no appeal on this aspect of the judgment and I would therefore not express any opinion on it. However the first Defendant was dissatisfied with the judgment of the lower Court and has appealed further to this Court on the following three main grounds of appeal.
“1. That the learned trial Judges misdirected themselves in law as to when a partnership is dissolved in line with the provision of section 33(1)(b) of the partnership law of Lagos State.
…………………….E…………………….
(ii) IN THE ALTERNATIVE:
That the learned trial Judges misdirected themselves in applying the provision of section 33(i)(b) of the partnership Law of Lagos State instead of section 45 which is more appropriate to the issue before the Court.
2. (iii) The learned Judges erred in law and on facts of the case to have dismissed the Defendant/Appellant Claim that the Respondent is not entitled to recover N37,000.00 from him when the contract sum has not been collected.
3. (iv) The learned trial Judges misdirected themselves on facts to have come to the conclusion that the Appellant has not proved that a case in which the contract sum yet to be paid was pending in Court.”
It is unnecessary to set out the particulars of the grounds of appeal because they are similar to the three issues formulated by the Appellants’ Counsel in his Brief of Argument. These issues are as follows:
“1 (a) The first issue for determination is whether learned trial Judge and appellate judges were right in holding that Appellant has not proved sufficiently enough that Suit No.LD/800/77 which has to do with the balance payable for the sub-contract job for which the partners were involved was pending in Court.
(b) Whether if the lower courts had been satisfied that Suit LD/800/77 was in fact pending in Court, the decisions of the lower Courts as to payment of balance of N37,000.00 to the Respondent would not have been the same.
2. The second issue for determination is as to whether from the evidence so far put before the lower court, it could be said that Appellant or Ferou (Nig.) Ltd. has received the balance payable in respect of the subcontract sum from Daas Piling & Construction (Nig.) Ltd.
3. The 3rd issue for determination is whether a partnership meant for a single venture or undertaking can for all purposes be held to have been finally terminated/dissolved on the completion of the single venture or undertaking without realisation of the money payable in respect of the single venture or undertaking.”
But in the Respondent’s reply he has set out only one issue for determination and that is:-
“Whether the Courts below were correct in holding that the special contract between the Appellant and the Respondent having been executed, the Partnership has come to an end, and that the Respondent is entitled to have the balance of the advance he gave to the Appellant paid back to him.”
I consider that issue as formulated to be a tidy and correct assessment of the issues involved in this case.
After this Court has heard Mr Akiyode in argument, it became quite apparent that the issues involved in this appeal turn entirely on the pleadings. It must be remembered that it is a cardinal principle of the Rules of Practice that parties are bound by their pleadings and evidence led on matters not pleaded goes to no issue. See National Investment & Property Company Ltd. v. Thompson Organisation Ltd. (1969) NMLR 99. Emegokwe v. Okadigbo (1973) 4 S.C.113 Abosede Williams v. O. Williams & Anor. (1974) 3 S.C.83
Furthermore, any fact admitted in a party’s pleadings, need not be proved by the other party. See section 74 of the Evidence Act Chief Okparaeke & ors. v. O. Egbuonu & ors. (1941) 7 WACA 53.
Now, let us take a quick look at the pleadings in this case.
…………………….F…………………….
In the amended statement of claim, the Plaintiff pleaded in paragraph 13 as follows:-
“At that stage the Plaintiff suddenly realised how easy it would be for the first Defendant to deny the whole transaction as
there was nothing in writing between the first Defendant and himself. The Plaintiff then demanded a written acknowledgement not only of the receipt of the said sum of N50,000.00 but also a statement to the effect that the profits of the contract were agreed to be shared between him and the 1st Defendant.”
In paragraph 4 of the Amended Statement of Defence the Defence replied as follows:-
“The Defendants deny the first sentence of paragraph 13 of the statement of claim but admit the second statement thereof.”
In coming to a decision whether or not the contract was between the Plaintiff and the 1st Defendant or the Plaintiff and the 2nd Defendant, the learned trial Judge held that the admission contained in paragraph 4 of the amended statement of Defence concludes the issue that ‘the transaction was in fact one between the Plaintiff and the 1st Defendant.
I agree with the learned Judge in this respect of course, there were other facts which tended to confirm that the business deal was between the Plaintiff and the 1st Defendant. For instance, the Judge found as a fact that the parties “dealt with each other on friendly basis” which arose from the business relationship they had built up when the 1st Defendant was in the North. That observation is quite correct: in consequence of that friendship, no receipts were issued for the N50,000.00 deposited by the Plaintiff-although it was paid in bits. Even when the Plaintiff collected part of this amount no receipt was demanded from the Plaintiff by the 2nd Defendant-Company. In fact, apart from exhibit B, there was no other document to support the fact that any transaction existed between the Plaintiff and the 2nd Defendant. This is strange especially when it is remembered that the 2nd Defendant is a limited liability company.
The Court of Appeal affirmed the finding of fact made by the trial Court and I see no reason to upset those findings
Another point which arose on the pleadings is the denial of liability by both Defendants. I had already referred to paragraph 5 where the second Defendant pleaded that they were strangers to the contract.
In the same Amended Statement of Defence the first Defendant in paragraph 8 made the same plea: he said as follows:-
“At all material times the Plaintiff knew that the first Defendant acted only as a Managing Director and agent of the second Defendant. The Defendants will therefore contend on the trial of this suit that the first Defendant is personally a stranger to the transaction which is the cause of this action.”
…………………….G…………………….
Now the question that one would ask is-Who then was liable if both Defendants were “strangers” on the contract? This, it must be admitted was an issue of fact on the evidence before the trial Court.
It seems to me that in trying to evade liability, both Defendants adopted a shifty stance on the pleadings. The 1st Defendant says that he was a stranger to the contract and was merely acting as agent to the 2nd Defendant. Because of this stand which the first Defendant took on the pleadings, he denied himself the opportunity of stating what the terms of the oral agreement were between him and the Plaintiff. In consequence, the Plaintiff’s evidence on the point remained uncontradicted.
The 2nd Defendant took the same stand and contradicted itself when it went on to state that the partnership agreement was between the Plaintiff and the Company. It will be seen that by denying obvious facts, the Defendants have presented a confused case, and consequently cast a lot doubt on their testimony.
Again, it must be stated that the issue as to which of the two Defendants had entered into a partnership agreement with the Plaintiff remained an issue of fact, especially since the agreement was oral. The trial Judge accepted the version presented by the Plaintiff and the Court of Appeal confirmed that finding. In this Court, the Appellant’s Counsel was unable to convince us that that finding was wrong and I would uphold it.
On the 1st issue formulated by the Appellant, he has asked this Court to hold that the Appellant had successfully proved that the 2nd Defendant had taken Court action against Daas Construction Company Limited (in Suit No. LD/800/77) in respect of the amount due to the Plaintiff on the partnership agreement for the supply of sand and gravels to Daas Construction Company Ltd. Now two points are worthy of consideration on this issue.
The first is that, in respect of the suit referred to, (Suit No. LD/800/77) the Defendants pleaded facts relating to it in paragraphs 10-23 of the Statement of Defence:
(a) In paragraph 11, they made reference to several local purchase orders etc., relating to the transactions but they did not tender any of them in the proceedings.
(b) In paragraphs 16-21, they referred to different amounts which had been paid on the contract and the balance which remained outstanding, but they did not tender any letter, voucher or other documents where these payments were reflected.
(c) In paragraph 22, they pleaded the fact that they had sued Daas Piling Construction Company Limited in Suit No.LD/800/77 for non-payment of the amount due to them and in respect of which the amount claimed by the Plaintiff formed a part.
Again, regrettably, the Defendants did not tender any copy of the writ of summons, the pleadings or any orders of Court made in the suit or other relevant document relating to that case.
…………………….H…………………….
(d) Lastly, they pleaded in paragraph 23 that the Defendant in the said suit (LD/800/77) i.e. Daas Construction Ltd., had written a letter dated 6/10/76 admitting their indebtedness in the sum of N81,711.50 as claimed on the writ. Again that letter was not tendered in evidence. In consequence of all these omissions which I have highlighted, there was nothing concrete to confirm that the Defendants had in fact taken action against Daas Ltd. or that the action was pending. Inevitably, the trial Judge came to the conclusion that the Defendants had not satisfactorily proved that there was any case pending in Court against Daas Construction Ltd. The Court of Appeal was of the same opinion, and I see no reason to differ from those views.
I now come to the second point on this issue and that is to consider what if any, is the relevance of proving that Daas Construction Company Limited is indebted to Ferou Nigeria Ltd.
The trial Judge had already held that the Plaintiff had no business transaction with Ferou Nigeria Ltd., this means that he had no money to collect from that company In those circumstances, it is of little consequence whether or not Daas Construction Company Ltd. was or was not indebted to Ferou Company Ltd.
The position might have been different if, for instance, the Defendants had admitted the plaintiff’s claim and were pleading for time to pay the judgment debt.
On the 2nd and 3rd issues, the Appellant has asked this Court to decide whether the Respondent could claim back the amount invested when the sum due on the sub-contract had not been recovered.
In deciding the point, the lower Courts held that sec. 33(1) of the Partnership Law of Lagos State applied to the facts of the case. That section states as follows:-
“33(1)(b)- Subject to any agreement between the parties a partnership is dissolved if entered into for a single venture or undertaking by the termination of the venture or undertaking.” (italics mine).
In the High Court, the learned trial Judge held that the partnership was at an end when the business for which it was formed had been concluded, and the Plaintiff was therefore entitled to have his deposit back. The Court of Appeal agreed with that conclusion.
In his brief of argument, Mr Akiyode argued first, that the contract should not be regarded as concluded until the moneys due on it have been collected. Secondly, Counsel contended that in a partnership, both parties should be ready to share the profits as well as any loss arising from the transaction. In this respect, Counsel referred the Court to sec.45 of the Partnership Law which he submitted, was more appropriate to this case than sec 31.
For the record, it is enough to state that section 45 merely provides that, subject to the agreement between the parties, the assets and liabilities of a partnership shall, on dissolution, be shared in the various proportions set out in the section.
Mr Akiyode has presented his arguments on issues 2 and 3 to us in a very attractive form, but he seems to have overlooked the essential words in sections 33 and 45 of the Partnership Law. Both sections state quite clearly that the provisions of the Law shall be “subject to any agreement between the parties.”
This means that the overriding consideration in any partnership is the agreement between the parties. In the instant case, there was an oral agreement between the parties; details of that agreement were given in evidence by the Plaintiff when he said:
“He (i.e. 1st Defendant) further assured me that he was being paid monthly for the contract and that at the end of each month he would share the profit with me until the completion of the job when the N50,000.00 would be refunded to me.” (italics mine).
…………………….I…………………….
The 1st Defendant did not give any evidence to rebut the Plaintiff’s assertion. His defence was and has always been, that the business agreement was made between the Plaintiff and the 2nd Defendant (Ferou Nig. Ltd.), He, the 1st Defendant, merely acted as agent of the 2nd Defendant.
As previously stated, the trial Court rejected that story and accepted the Plaintiff’s version of the whole incident.
This means that the binding contract between the parties is that the 1st Defendant shall refund the Plaintiff’s contribution of N50,000.00 on completion of the business transaction.
The lower Court gave effect to those terms of the agreement and I hold that they were right to do so.
In the result, the appeal fails on all grounds and it is dismissed. The judgment of the High Court of Lagos as amended by that of the Court of Appeal, is hereby confirmed. It is ordered that the 1st Defendant/Appellant shall pay to the Plaintiff/Respondent the sum of N37,000.00 together with costs assessed at N500.00.
Nnamani, JSC. I had the advantage of reading in draft the judgment just delivered by my learned brother, CRAIG, J.S.C. I agree entirely with his reasoning and conclusions.
The case is indeed a sad one as it seems to underline the inability of some people to resist the evil actions which money propels them into. An advance of as much as N50,000, which was not even receipted for, from one friend to another has earned the friend who made the advance nothing but dispute and pain.
It seems to me too that the two lower Courts have properly dealt with and reached three conclusions that appear to me to have justly resolved this matter. These are:-
(1) That the oral contract was clearly between the Plaintiff/Respondent and Defendant/Appellant.
(2) The introduction of Messrs Perou (Nig) Ltd., of which Appellant claimed to be Managing Director, was just to confuse issues and run away from liability.
(3) There was no contract between the Plaintiff/Appellant and DAAS PILING and Construction Company (Nig.) Ltd. Nor was the Defendant/Appellant able to establish there was any suit alleged to be No. LD/80077 between him or Ferou (Nig) Ltd. and DAAS PILING Company.
…………………….J…………………….
My learned brother, who has dealt with these matters in detail, has raised the interesting point. This is that in their pleadings both Appellant and the so-called 2nd Defendant disclaimed liability. Who then was liable?
The appeal is totally without substance and I hereby dismiss it. I abide by all the orders in the judgment of my learned brother, CRAIG, J.S.C.
Uwais, JSC. I have had the advantage of reading in draft the judgment read by my learned brother Craig, J.S.C. I agree with the reasons and conclusion therein I adopt the judgment as mine and do not wish to add anything to it.
Accordingly, the appeal has failed and it is hereby dismissed with N500.00 costs to the Respondent. The decision of the Court of Appeal and the orders made thereunder are hereby confirmed.
Oputa, JSC. The facts of this case and the way it was handled, with the Appellant in his pleading strenuously denying the obvious, amply prove the saying that “matter divides whereas spirit unites.” Teach two people a prayer and it will keep them together but you give them a loaf of bread and they will quarrel over, during the sharing of it. And so it was that the Appellant and the Respondent who were very close friends, so close that the Respondent could confidently part with his N50,000.00 as his contribution to a proposed partnership without any receipt or other written acknowledgement, became enemies when it came to the sharing of the proceeds of their partnership venture and ultimately found themselves engaged in a protracted litigation up to the Supreme Court.
The main issues in controversy were:-
(i) Was there a Partnership between the Appellant and the Respondent?
(ii) If yes, what were the terms and conditions of that Partnership?
(iii) Has the Partnership been dissolved?
(iv) What now are the entitlements of the Plaintiff/Respondent?
Most of, if not all, the issues listed above are issues of fact on which one has to place great reliance on the state of the pleadings especially the positive admissions made therein and the findings of fact of the learned trial Judge who saw the witnesses, heard them testify, and had the singular and significant opportunity of watching their demeanour in the witness box.
I have had the privilege of a preview in draft of the lead judgment just delivered by my learned brother Craig, J.S.C. There, the pleadings were critically examined, the evidence carefully adverted to, and the concurrent findings of the two lower Courts noted, assented to, and confirmed. From these, my learned brother arrived at the compelling and inevitable conclusion that this appeal ought to be dismissed. I entirely agree.
…………………….K…………………….
Was there any contract, any partnership, between the Plaintiff/Respondent and the 2nd Defendant, Ferou (Nigeria) Ltd. as the Appellant alleged; or was the transaction between the Plaintiff/Respondent and the Appellant in his personal capacity, not involving in any way the “nebulous” company, Ferou (Nigeria) Ltd., of which the Appellant was the Managing Director? The answer to this question is vitally important as it holds the master-key that will unlock the other issues in this case. On this important issue the learned trial Judge Oshodi, J. at p.130 of the record of proceedings found as follows at lines 20-28:-
“The first point that calls for consideration is whether the transaction was between the Plaintiff and the 1st Defendant as contended by the Plaintiff or between the Plaintiff and the 2nd Defendant-Ferou (Nigeria) Ltd.-as stated by the Defendants.
I am satisfied from the totality of the evidence before me that the transaction was between the Plaintiff and the 1st Defendant personally and not between the Plaintiff and the 2nd Defendant.”
After reviewing the pleadings and the admission by the Appellant that “the Plaintiffs then demanded (from him personally) a written acknowledgment not only of the receipt of N50,000.00 but also a statement to the effect that the profits of the contract were agreed to be shared between himself and the 1st Defendant (now the Appellant) the learned trial Judge continued:-
“I share the view expressed by the Plaintiff’s counsel that upon this admission by the Defendants it is not open to them to set up any other conflicting averments in their pleading or evidence in Court.
Further, the irresistible conclusion one would draw from the conduct of the parties is that the transaction was between the Plaintiff and the 1st Defendant personally…It is quite clear that from the onset the Plaintiff and the 1st Defendant dealt with each other on friendship basis”
The above conclusions of the trial Court which were affirmed and confirmed by the Court of Appeal were amply supported by the evidence. For instance all the payments made to the Respondent were by cheques-personal cheques-of the Appellant not by Ferou (Nigeria) Ltd. cheques, if any existed at all. Also when the Appellant requested the Respondent to contribute N50,000.00 to the partnership in 1975 and when the Respondent paid his first instalment of N35,000.00 in cash which was handed over to the Appellant no mention was then made of any company. It was only when the Respondent wanted the return of his capital contribution of N50,000.00 and profits as agreed that the Appellant in a letter dated 14/2/77 (Ex.B) first “invented” the company, Ferou (Nigeria) Ltd. I used the expression invented advisedly. I am in no doubt that the Appellant brought in this “famous” Company Ferou merely to becloud the otherwise very clear issues of the return of the capital and profits due to the Respondent.
…………………….L…………………….
The next issue seems naturally to be whether the legal relationship between the Appellant and the Respondent was a partnership and if yes what were the terms and conditions of that particular partnership? The learned trial Judge considered the evidence before him against the provisions of Section 3(1) of the Partnership Law of Lagos State Cap 88 of 1973 and held at p. 133:-
“I have therefore come to the conclusion that there was a partnership between the Plaintiff and the 1st Defendant in respect of the sub-contract.”
And he was right. The essential element common to all partnerships is the pooling together of resources-capital or labour or skill-for the purpose of business for the common benefit of the partners. This involves the sharing of profits. It is common ground, having been agreed on all sides, that the Respondent contributed N50,000.00 to the partnership. This sum was paid to, and received personally, by the Appellant who acknowledged such receipt in his letter Ex. B. Out of the total sum of N50,000.00 the Appellant had paid back to the Respondent a total of N13,000.00 leaving a balance of N37,000.00 on the capital contribution made to the partnership by the Respondent. There was evidence that the “anticipated profit” from the partnership venture will be N22,000.00 and that the Plaintiff/Respondent’s share of that profit will be N10,000.00. Since there was no cross-appeal by the Respondent regarding profits, there is no need to pursue further the terms of sharing the profits of the partnership.
Three Issues For Determination were formulated in the Brief filed on behalf of the Appellant. These “Issues” presuppose:-
(i) That the partnership was between the Respondent and Ferou (Nigeria) Ltd.
(ii) That consequently, the Respondent was privy to the contract between Ferou (Nigeria) Ltd. and Daas Piling and Construction (Nig) Ltd.
The two Courts below had made concurrent findings of fact to the effect that the partnership was between the Respondent and the Appellant personally, that the Respondent did not even hear, or know, of the existence of Ferou (Nigeria) Ltd at the time he entered into a partnership with the Appellant. It was only when the Respondent waited in vain, month after month, for his own share of the profits from the partnership venture and asked for the return of his capital and profit, that the Appellant wrote EX.B mentioning for the first time Ferou (Nigeria) Ltd. and its contract with Daas Piling and Construction (Nig) Ltd. Just how could the Respondent have been privy to a contract between two companies the very existence of whom he did not even know? With the concurrent findings of the two Courts below that the partnership was between the Respondent and the Appellant personally, it was idle, to say the least, for the Appellant to drag into this simple case, Ferou (Nigeria) Ltd. and Daas Piling and construction (Nig) Ltd, to becloud the otherwise clear and straightforward claim of the Respondent for the return of N50,000.00 capital profits estimated at N10.000.00. On this point, I will like to refer to the judgment of the Court of Appeal at p. 182 per Uthman Mohammed, J.C.A:-
…………………….M…………………….
“I agree therefore that the 1st Appellant (the Appellant in this Court) is personally liable for whatever remained as the balance of the Respondent’s contribution to the oral partnership agreement entered into by the two parties.”
If the Appellant is personally liable, as indeed he is, then there is no need dragging in Ferou (Nigeria) Ltd. or Daas Piling and Construction (Nig.) Ltd. Any indebtedness of Daas Piling and Construction (Nig.) Ltd, to Ferou (Nigeria) Ltd. will not be the concern of the Respondent and further will not be the Appellant’s answer to his (Appellants) indebtedness to the Respondent. This being so, the 3 Issues formulated in the Appellant’s Brief are thus Non-Issues. They do not arise. The appeal therefore fails.
There is strangely no cross-appeal by the Respondent on the profits from the partnership venture. It is not the case of the Appellant that there were no profits. No. His case was that Daas piling and Construction (Nig) Ltd. has not paid up. As I said there is no cross-appeal, so, one will conveniently let sleeping dogs lie.
In the final result and for all the reasons given above and in addition for the fuller reasons given in the lead judgment of my learned brother Craig, J.S.C. which I now adopt as mine, this appeal is dismissed. I abide by all the consequential orders made in the lead judgment.
Wali, JSC. The Plaintiff who will hereinafter be referred to as the Respondent is a commercial printer, stationery supplier and a general contractor and supplier of other goods; while the 1st Defendant who will also hereinafter be referred to as the Appellant was until his retirement from service a Senior Stores Officer under the Nigerian Railway Corporation. While the Appellant was on posting to Zaria, he befriended the Respondent and they eventually became business associates.
When eventually the Appellant returned to Lagos, he invited the Respondent to come to Lagos to discuss with him a lucrative contract at the Festac Village, Badagry Road, Lagos awarded to him (the Appellant) in which he wanted the Respondent to participate and share whatever profit they could make.
…………………….N…………………….
After some discussions, the Respondent orally agreed with the Appellant, at the request of the Appellant, to contribute N50,000 00 to the venture by way of an advance, with the understanding that the money so advanced would be paid back in full when the contract was completely executed, in addition to whatever share of the profit he would be due. The Respondent paid the N50,000.00 personally to the Appellant in the following instalments –N35,000.00, N10,000.00 and N5,000.00 respectively.
Later, the Respondent, in order to make his position more secure vis-a-vis the N50,000.00 he advanced for the venture and his share of profit there from, demanded from the Appellant acknowledgement of these in writing. The Appellant wrote to the Respondent on the letter-headed paper of FEROU (Nig) Ltd., Building and Civil Engineering Contractors (who later became the 2nd Defendant) that they “have a hint from a very reliable source that the Federal Government might pay DAAS (Piling and Construction Company) all that the company is due probably by March…(and) hope that when the company is paid, they will be in a position to settle the debt which is being owed to FEROU (Nig) Ltd.”
The Appellant concluded the letter by asking the Respondent to regard the N4,000.00 paid to him by the Appellant personally as having been taken from the Respondent’s N50,000.00, advanced, thus leaving a balance of N46,000.00.
The Appellant signed the letter containing the vital informations supra as Managing Director of PEROU (Nig.) Ltd., thus showing that the debt is not personally owed to him but to the Company on behalf of which he signed. This apparent misunderstanding and loss of faith forced the Respondent to sue the Appellant to Court for the recovery of his money.
Pleadings were ordered, filed and exchanged. The parties joined issue. Witnesses were called by each side. The learned trial Judge held that the transaction was between the Appellant and the Respondent and that the partnership agreement entered between the two of them became automatically dissolved with the completion of the contract for the accomplishment of which it was formed. He made an order against the Appellant that he should pay N47,000.00 to the Respondent in full settlement of the outstanding advance of N46,000.00 and a sum of N10,000.00 as his share from the profit earned.
…………………….O…………………….
The Appellant lodged an appeal against the judgment to the Court of Appeal. The Court of Appeal dismissed the appeal save on the issue of the award of N10,000.00 profit which was allowed.
The findings of fact by the trial judge on vital issues involved in the case and which were subsequently affirmed by the Court of Appeal are amply supported by the evidence.
There is nothing in the evidence to show that the Appellant, at the time he approached the Respondent for the advance of N50,000.00 was acting for an undisclosed principal. The Respondent is not a party to the introduction of the 2nd Defendant into the venture, either directly or by implication. The partnership between the Appellant and the Respondent was deducible from the conduct of the two parties. See Thomopulus v. Mandilas 10 W.A.C.A. 269, and as rightly pointed out by the learned Judge it came, to an end with the accomplishment and automatic termination of the single venture it was formed to carry out. See Section 33(1)(b) of the Partnership Law.
In view of the concurrent findings of fact by both the High Court and the Court of Appeal on the issues raised in this case, and in the absence of any special circumstance warranting this Court to do so, this Court will not interfere. See Ukpe Ibodo & ors. v. Enarofie & ors. (1980) 5-7 S.C. 42 at 55; David Dawodu Lokoyi & Anor. v. Emmanuel Babalola Olojo (1983) 8 S.C. 61 and Sockna Moromodu Allie & ors. v. Ahmed Alhaji & ors. 13 W.A.C.A. 320, particularly at 321 wherein their Lordships of the Privy Council stated thus:
“However that may be, it is not a matter upon which their Lordships could or ever do, interfere, when the matter has been not only to the Court of first instance but to the Court of Appeal in the Colony itself.
In these circumstances, having regard to the fact that there are concurrent findings of fact there was ample evidence to justify them and that in their Lordships’ view … it only remain for them to say that they will humbly advise Her Majesty that the appeal should be dismissed.”
For these and the main reasons contained in the lead judgment of my learned brother, Craig, J.S.C. this appeal is without merit and is accordingly dismissed. I abide by the orders made in the lead judgment, including that of costs.
A. Akiyode Esq. for the Appellant
T. Onafowokan for the Respondent.
OGUNSANYA OLUWASEYI v. THE STATE
On Friday, the 14th day of December, 2018
SC. 610/2016Before Their Lordships
IBRAHIM TANKO MUHAMMAD Justice of The Supreme Court of Nigeria
OLUKAYODE ARIWOOLA Justice of The Supreme Court of Nigeria
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN Justice of The Supreme Court of Nigeria
AMINA ADAMU AUGIE Justice of The Supreme Court of Nigeria
SIDI DAUDA BAGE Justice of The Supreme Court of Nigeria
Between
Before Their Lordships
IBRAHIM TANKO MUHAMMAD Justice of The Supreme Court of Nigeria
OLUKAYODE ARIWOOLA Justice of The Supreme Court of Nigeria
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN Justice of The Supreme Court of Nigeria
AMINA ADAMU AUGIE Justice of The Supreme Court of Nigeria
SIDI DAUDA BAGE Justice of The Supreme Court of Nigeria
Between
OGUNSANYA OLUWASEYI Appellant
AND
THE STATE Respondent
…………………….A…………………….
SIDI DAUDA BAGE, J.S.C. (Delivering the Leading Judgment): This is an appeal against the judgment of the Court of Appeal Ibadan Division (Court below), (Lower Court), in Criminal appeal No.CA.1B/413C/2013 delivered on 17th May, 2016 by which said judgment, the Court below affirmed the conviction and sentence passed on the Appellant by the High Court of Ogun State sitting in Abeokuta.
SUMMARY OF FACTS
The brief facts of the appeal are that, on the 17th day of January, 2007, the complainant; one Aminat Olufade (PW. I) took a commercial motorcycle to take her home after closing from her place of business at about 7.30pm. Around Printing Corporation in Abeokuta, as the motorcycle slowed down, another motorcycle suddenly emerged beside her and the rider of that motorcycle forcefully snatched her bag and sped away. According to the complainant, she started shouting for help and asked the motorcycle rider that took her to ride fast after the other motorcycle; but they lost him. According to the complainant (PW.1), because of the conduct of the motorcycle rider that took her, she suspected his complicity in the whole incident, and therefore sought the help of Policemen attached to the Central Bank of Nigeria, who then immediately arrested him.
According to the complainant (PW.1) about two weeks after, MTN gave her an itemized bill which contained the list of calls, duration of such calls and the numbers called. That, upon checking the list, she discovered that 15 minutes after the incident, calls were made from her phone stolen from her, and that a call to one of the numbers went through and was picked by a lady. That she then fixed an appointment with the lady, and also reported to the police who assigned a police-woman to accompany her. The lady was arrested. The lady told her that it was one Seyi (Appellant) who called her with the complainant’s phone. The Appellant was then arrested. The complainant also testified that, her bag which was snatched contained some MTN, GLO, V-Mobile lines as well as recharge cards for MTN, GLO, MTS, Multilinks and
…………………….B…………………….
V-Mobile. That, it also contained some phones such as Nokia 1100, Sagem MYX2, Federal Polytechnic Ilaro Student Identity Card and National Identity card and a bunch of keys.
The Appellant denied the charge. At the trial, the prosecution called three witnesses who testified as PW.1, PW.2 and PW.3 respectively. The prosecution also tendered the extra-judicial statements of the Appellant in evidence and the MTN itemized Bill, and were admitted as Exhibits P, P1, P10 and P11 respectively. The Appellant testified in his defense.
The trial Court in its judgment convicted the Appellant and sentenced him to 21 years imprisonment, while the second accused was discharged and acquitted.
The Appellant having not been satisfied with the judgment of the trial Court, appealed to the Court below. After hearing the appeal, the Lower Court dismissed the appeal for lack of merit. The judgment of the Lower Court is contained at pages 157-161 of the Record of Appeal.
This appeal is against that judgment. In accordance with the Rules of this Court, briefs were filed and exchanged by parties. The Appellant’s brief was settled by Ahmed Akanbi Esq, and filed on the 2nd September, 2016. He also filed a reply brief on 9th January, 2017 but deemed filed on 4th October, 2018.
In the Appellant’s Brief of Argument, counsel formulated two (2) issues for determination to wit:
I. Whether having regard to the Judgment of the lower Court in Appeal No: CA/I/305/2011, the lower Court has the jurisdiction to affirm the conviction of the Appellant for the offence of the receipt of stolen goods contrary to Section 5 of the Robbery and Firearms (Special Provisions) Act.
ii. Whether having regard to the circumstances of this appeal, the Court of Appeal was right in affirming the conviction of the Appellant notwithstanding the fact that the Respondent did not establish the offence of robbery, more so having regard to the lack of compellability of the Appellant’s extra-judicial
…………………….C…………………….
statement which were intrinsically contradictory.”
The Respondent’s Brief of Argument wherein, it incorporated a Notice of Preliminary Objection, which was filed on 8th December, 2016 but deemed filed on 4th October, 2018 was settled by Dr. Olumide Ayeni the Attorney General of Ogun State, posited two issues for determination as follows:
“I. Whether the learned Justices of the Court of Appeal acted correctly and with the requisite jurisdiction in affirming the conviction of the Appellant by the High Court of Ogun State of the offence of receiving stolen goods contrary to Section 5 Robbery and Firearms (Special Provisions) Act Cap. R11 LFN, 2004 in the entire circumstances before them.
ii. Whether the learned Justices of the Court of Appeal acted correctly when they affirmed the Judgment of the High Court of Ogun State against the Appellant having regard to the entire material and evidence available establishing the guilt of the Appellant beyond reasonable doubt.”
After examining the issues formulated by Counsel, this appeal will be determined on a lone issue, which is reframed as follows:
“Whether the lower Court ought to have considered its previous decision in appeal No.CA/1305/2011 in convicting the Appellant having found that his confessional statement was direct, clear, and voluntary.”
Counsel for the Respondent, the learned Attorney General, filed a Notice of Preliminary objection seeking the Court to dismiss this appeal on the following grounds;
“(I) The Appeal is in violation of Order 2 Rule 32 Supreme Court Rules, (as Amended) in that it agitates matters relating to concurrent findings of the High Court and Lower Court of Appeal without prior leave sought or obtained from either the Lower Court of Appeal or this Honourable Court.
(ii) The Appeal and its three (3) Grounds are not agitated on law alone but on mixed law and fact outside the ambit of Section 233 (2) Constitution of the Federal Republic of Nigeria, 1999 (as Amended) and in violation of Section 233 (3) thereof.”
…………………….D…………………….
Learned Counsel for the Appellant responded to the said Preliminary Objection in his Reply Brief deemed properly filed on the 4th October, 2018.
Learned Counsel for the respondent cited the Provision of Order 2 Rule 32 of the Supreme Court Rules as follows;
“Where, in an appeal to the Court from the Court below, the Court below affirmed the findings of facts of the Court of First instance, any application to the Court in pursuance of its jurisdiction under Section 233 (3) of the Constitution for leave to appeal shall be granted only in exceptional circumstances.”
Learned Counsel went further to produce the provision of Section 233 (2) and (3) of the Constitution as follows;
“(i) An Appeal shall lie from decisions of Court of Appeal to the Supreme Court as of right in the following cases: –
(a) where the ground of appeal involves questions of law alone, decisions in any civil or criminal proceedings before the Court of Appeal;
(b) decisions in any civil or criminal proceedings on questions as to the interpretation or application of this Constitution,
(c) decisions in any civil or criminal proceedings on questions as to whether any of the provisions of Chapter IV of this Constitution has been, is being or is likely to be, contravened in relation to any person;
(d) decision in any criminal proceedings in which any person has been sentenced to death by the Court of Appeal or in which the Court of Appeal has affirmed a sentence of death imposed by any other Court;
(e) decisions on any question-
(i) whether any person has been validly elected to the office of President or Vice President under the Constitution.
…………………….E…………………….
(ii) whether the term of office of President or Vice President has ceased.
(iii) whether the office of President or Vice has become vacant; and
(c) Such other cases that may be prescribed by an act of the National Assembly.
Section 233 (3) provides thus;
“Subject to the provisions of Subsection (2) of this section, an appeal shall lie from the decisions of the Court of Appeal to the Supreme Court with the leave of the Court of Appeal or the Supreme Court.”
Learned counsel for the Respondent submitted that the factors to be considered before this Court can interfere with the concurrent findings of the lower Courts referred to in the above provisions were absent from this Appeal. Counsel referred us to ODEH VS FEDERAL REPUBLIC OF NIGERIA (2008) 13 NWLR (Pt.1103) 1, 35A-C; LOCKNAN & ANOR VS THE STATE (1972) 5 SC 22; UDEH VS THE STATE (2001) 2 ACLR 356, 360; (1999) 7 NWLR (Pt.609)1.
Counsel further submitted that this Appeal is a violation of the combined effect of Section 233 (2) and (3) of the Constitution of the Federal Republic of Nigeria, 1999 (as amended) having been lodged on grounds of mixed law and fact and should be held incompetent. Counsel submitted further that this position was trite regardless of whether the ground is cast as one of jurisdiction. He referred to DAIRO VS UNION BANK OF NIGERIA PLC (2007) 16 NWLR (Pt.1059) 99, 134A-B; OKETADE VS ADEWUNMI & 4 ORS (2010) 8 NWLR (Pt.1195) 63 at page 78 paragraphs F-G; JOV VS DOM (1999) 9 NWLR (Pt.520) page 533 at 547, B-C; SAPO & ANOR VS SUNMONU (2010) 11 NWLR (Pt.1205) 374 at 393, C-G; OWIE VS IGHIWI (2005) 5 NWLR (Pt.917) 184 at 223, G-H.
In response to the Notice of Preliminary Objection, counsel for the Appellant, in the Appellant’s Reply Brief, submitted that the Respondent misunderstood the grounds of Appeal as contained in the Notice of Appeal, as all three grounds are premised on law and in tandem with the provisions of Section 233 (2) (a) of the Constitution and as such no leave is required.
…………………….F…………………….
Appellant’s counsel submitted further that the criteria for distinguishing between a ground of law and that of fact poses some difficulty which has been addressed by this Honourable Court in the case of C.C.C.T.C.S. LTD VS EKPO (2008) 6 NWLR (Pt.1083) Page 409 paragraphs E-H.
Counsel submitted that the Respondent clearly made no reference to the Appellant’s Notice of Appeal and that that is the necessary for this Honourable Court to do in considering the merit or otherwise of the Respondent’s Objection.
Counsel conceded that there was a need generally, for a party raising an issue on appeal for the first time to seek leave, he referred to SAKATI VS BAKO (2015) 14 NWLR (Pt.1480) 531 at 563 paragraphs E-G.
I have carefully examined the argument above and I agree with the position of the Learned Counsel for the Appellant that the issue of jurisdiction can be raised at any stage for the first time on appeal before this Court without seeking leave. See NUHU VS OGELE (2003) 18 NWLR pt.852.
On the second ground of appeal which challenges the issue of evidence, I have also agreed with the Learned Counsel for the Appellant that where the ground of appeal complains that the Judgment of the trial Court was not supported by evidence and that, the ingredients of the offence were not proved, that issue is of law and not an issue of fact or mixed law and fact.
It is a trite position of the law that a ground of appeal raising the issue of law alone needs no leave of the Court before filing. See CHROME AIR SERVICES LTD vs FIDELITY BANK (2008) EJSC at 158.
On the whole, the Preliminary Objection filed by the Respondent’s Counsel therefore fails and it is hereby overruled.
…………………….G…………………….
CONSIDERATION OF THE APPEAL
On the lone issue for the resolution of this appeal, Learned Counsel for the Appellant argued that the Learned Justices of the Court of Appeal respectively were bereft of the requisite jurisdiction to have affirmed the conviction of the Appellant, Learned Counsel submitted that the same division of the Lower Court in appeal no. CA/I/305/2011 between HARUNA RAFIU VS THE STATE mitigated the sentence of the said Haruna who was charged before the High Court for the offence of Armed Robbery.
Learned Counsel argued that the Appellant in this case was convicted for receiving the goods stolen from the said Haruna Rafiu who was convicted by the same Lower Court for stealing and not Armed Robbery.
Learned Counsel contended that, for the Appellant to be convicted for the offence of receiving stolen property under Section 5 of the Robbery and Firearms (Special Provision Act), the goods received must have been obtained by means of any act constituting an offence under the Robbery and Firearms (Special Provisions) Act.
Learned Counsel argued that the consequence and purport of the Court of Appeal’s decision in HARUNA RAFIU VS THE STATE ought to have been applied to the sentencing and conviction of the Appellant by the Court of Appeal which if duly applied would have led to the Appellant being sentenced for the offence of receipt of stolen goods and not receipt of goods under the Robbery and Firearms (Special Provisions) Act. He referred to the case of NWACHUKWU VS THE STATE (1986) 2 NWLR (Pt.25) 765; BANJO vs THE STATE (2013) 16 NWLR (Pt.138) at 469 paragraphs B-C.
Learned Counsel submitted that the Lower Court should have taken judicial notice of the decision under reference in arriving at its decision. Learned counsel cited SPDC (NIG) LTD VS DINO (2007) All FWLR 9(Pt.362) 1942 at 1957 AND GLOBAL SOAP & DETERGENT IND. LTD vs NOTABLE (2009) All FWLR (Pt.407) 1 at 134 SC; MILITARY GOVERNOR OF LAGOS STATE VS ADEYIGA (2012) 5 NWLR (Pt.1293) 291 at 323 SC’
…………………….H…………………….
Learned Couse| opined that the erstwhile counsel to the Appellant had in his submissions before the Lower Court brought to the knowledge of the Court, the judgment of the Lower Court in HARUNA RAFIU vs THE STATE and the Court ought to have taken judicial notice of same as it forms part of proceedings before the Court.
Learned Counsel contended that, the Lower Court having held in HARUNA RAFIU VS THE STATE that the properties of the Complainant was not obtained by Robbery, the Appellant’s sentence and conviction should also have been reduced accordingly to correlate with the punishment for the receipt of stolen items arising from the offence of stealing and not for the offence of receipt of stolen goods arising from the offence of Armed Robbery.
On the issue of evidence, Learned Counsel submitted that what the Trial Court relied on in convicting the Appellant were mere assumptions devoid of any factual basis. The fact that the goods in question were found in the possession of the Appellant, was not evidence whatsoever in support of guilty knowledge.
Learned Counsel argued that no evidence was canvassed by the prosecution in support of any of the ingredients, it is not in doubt that the Appellant runs a telephone services and repair shop and the goods found in his possession could as well have been received in the line of legitimate business.
Counsel submitted that the Respondent ought to prove beyond reasonable doubt the fact that the Appellant had guilty knowledge that the items were stolen, and that the Respondent neglected and/or refused to do this. Counsel submitted that the necessary ingredients in proving guilty knowledge were not before the Court. He referred to NJOVENS & 3 ORS VS THE STATE (1973) 5 SC 12; BASSEY ASUQUO EKPO VS THE STATE (2003) 17 NWLR (Pt.849) 392 at 394.
Learned Counsel submitted that the Court below ought to have considered the other extra-judicial statements of the Appellant, as contained in exhibits P and P10, which according to counsel exonerated the Appellant. Counsel further submitted that the lower Court countenanced only exhibit P11 which was
…………………….I…………………….
incriminating and controversial.
Counsel submitted that neither of the statements made by the Appellant should have been relied on as all were unreliable in the face of the contradictions contained therein. He referred us to JIMOH ISHOLA (A.K.A. IDIGBADERO’) VS THE STATE (1977) 2 FCA 156; YONGO VS COMMISSIONER OF POLICE (1990) 5 NWLR (Pt.148) 103 at 116; OLADEJO VS THE STATE (1987) 3 NWLR (Pt.61) 419 at 427 and UMANI VS THE STATE (1988) 1 NWLR (Pt.70) 274; (1988) 19 NSCC (Pt.) 137 at 141 – 142.
Appellant’s counsel submitted that even though the content of the third extra-judicial statement (exhibit P11) is confessional in nature and admitted without objection, the trial Court still had the duty to consider all defences available to the Appellant whether raised directly or remotely in the interest of justice and not use exhibit P11. He referred to AHMED VS NIGERIAN ARMY (2010) 1 NWLR (Pt. 1227) page 118-119, paragraphs H-C.
Counsel urged this Court to rest on the decisions in EYO VS THE STATE (2016) 7 NWLR (Pt.1510) page 192 paragraphs B-E; SHURUMO vs THE STATE (2010) 19 NWLR (Pt.1226) 73; MARTINS vs CO.P. (2005) 7 NWLR (Pt.925) 614; OMOKHAFE vs ESEKHOMO (1993) 8 NWLR (Pt.309) 58 and Section 22 of the Supreme Court Act and disturb the concurrent findings of the two lower Courts.
Learned Counsel submitted that it is crystal clear that the first two extra-judicial statements of the Appellant were not confessional as he did not admit receiving or buying the phones and recharge cards belonging to the Complainant.
Learned Counsel finally contended that although there were concurrent findings in respect of this appeal, it can rightly be argued that disallowing this appeal will occasion miscarriage of justice.
Learned Counsel urged this Court to allow the appeal and set aside the judgment of the Lower Court.
…………………….J…………………….
On the other hand, Olumide Ayeni Esq., Learned Counsel for the Respondent submitted that by Section 122 (4) of the Evidence Act, 2011, the Lower Court enjoys discretion whether or not to take judicial notice of matters in Section 122 thereof.
Learned Counsel contended that at nowhere did the Appellant in appeal No. CA/1/413/20/13 at the Lower Court invite the attention of the learned Justices to any such books or document beyond a perfunctory reference in the course of arguments in paragraph C6 of the Appellant’s Briefs.
Learned Counsel contended that it is axiomatic to exercise of jurisdiction by any Court that decisions are based on the material evidence and or facts placed before a Court and not otherwise.
Learned Counsel argued that in the respectful submission of the Respondent, there is no merit in substance concerning this issue as formulated in this appeal by the Appellant or cast in the mould of jurisdiction as the composite effect and wide context of Section 179 of the Criminal Procedure Law of Ogun State, 2006. Section 20, Court of Appeal Act, Cap C36, 2004, Sections 25 and 26 Supreme Court Act Cap S15, 2004.
Learned Counsel contended that, the clear and trite position of the law has long been made clear by a long line of decisions of various Courts including the Supreme Court in the foregoing respect. He referred this Court to NWACHUKWU VS THE STATE (1986) 2 NWLR (Pt.25) 765 at 776-779 paragraphs F-F; R VS TYSON 11 WACA 90; R VS ADOKWU (1952) 20 NLR 103; THE QUEEN VS NWAGWOGWU (1962) 1 All NLR 294; OYEDIRAN VS REPUBLIC (1967) NMLR 122; SHOSIMBO VS THE STATE (1974) 10 SC 91 ; FARO VS INSPECTOR GENERAL OF POLICE (1964) All NLR 6; EFFIOM VS THE STATE (2003) 3 ACLR 192, 214; (1995) 1 NWLR (Pt.373) 507.
In the Appellant’s Reply Brief, counsel submitted that Respondent misunderstood the purport of the Appellant’s Brief of arguments on the submissions on judicial notice.
…………………….K…………………….
Counsel relied on the case of OSAFILE VS ODI (No.1)(1990)3 NWLR(Pt.137) 130 at 164 in submitting that the purport of the submissions regarding Appeal No. CA/I/305/2011; HARUNA RAFIU VS THE STATE contained in the Appellant’s Brief is that for justice to be done, the Appellant who was charged and convicted for the offence of receiving stolen property ought not be punished more than the person who actually stole the property.
Counsel urged this Honourable Court to take judicial notice of the judgment of the Court below in Appeal No. CA/I/305/2011; HARUNA RAFIU VS THE STATE as that is the only way that justice may be done to the Appellant.
Counsel urged this Honourable Court to find that the Appellant did not receive goods from the proceeds of robbery but stealing as evidenced in the judgment of the Court below hitherto referred to and the Appellant’s punishment should be commensurate.
Learned Counsel submitted that the point that is being made is that no issue of jurisdiction or lack of it, sufficient to vitiate the Lower Court’s judgment has been made out in this appeal which in any event is bereft of merit. Learned Counsel submit that all the issues raised at the trial were frontally, fully and painstakingly considered by the Learned Justices of the Court of Appeal.
Learned Counsel finally urged this Court to dismiss this appeal and affirm the judgment of the Lower Court.
Upon due consideration of the argument of Learned counsel as espoused above, I dare say that it is settled law by a long line of cases that a free, voluntary, direct and positive confessional statement is sufficient by itself, without corroboration, to warrant the conviction of an accused person provided always that the Court is satisfied with the truth of the confession. This, the Court can do, even if the accused resiles from it.
The Learned Trial Judge in his judgment at page 100 of the Record of Appeal stated as follows:
…………………….L…………………….
“Before I conclude, let me say something about the attempt made by the 3rd accused to resile from his confessional statement made at the state C.I.D, Eleweran, when (as DW.3 testifying in Chief) he said he was threatened and slapped by the Police. Exhibit P.11 was tendered without any objection from Defense Counsel, and it was admitted. It is settled that the proper time for taking objection to the admissibility of a confessional statement is at the time it was being tendered and not later… it is also settled that once a confessional statement is admitted in evidence, it becomes part of the case of the prosecution, the probative value of which the trial Judge is bound to consider … I hold that the attempts of the 3rd accused to resile from his confession as aforesaid is of no moment.”
The findings and conclusion of the Learned Trial Judge above was also affirmed by the Lower Court in its judgment at page 148 of the record as follows;
“let me support that position by affirming that, the law, which is now settled is (sic) that, a confessional statement which has been tested and proved to have been voluntarily made, is a relevant fact against the accused person who made it. If found to be direct and positive, it will be sufficient to ground a conviction. The fact that the accused person retracts or resiles from such statement will not render such statement inadmissible. Accordingly, where the accused wishes to rely on such denial as his defiance or part of his defense, he has to explain the inconsistency between his confessional statement which has been duly proved and admitted and his testimony before the Court.”
I think it will be useful at this stage to reproduce the portion of Appellant’s statement in exhibit P.10 copy from page 151 of the record.
“I know one Haruna Rafiu also known as Paso who use to come to my shop, who came to repair and sell handset to me also an Okada rider. Sometimes November 2006 Haruna Rafiu brought a Sagem MYX7 handset for sale and I bought it for N5,000.00 and after the following week he brought another Sagem MYX1 handset I bought it for N2,000.00. On February 6th, 2007 Haruna Rafiu came to my shop with a Sonics Ericson handset for sell and I collected it from him. I have not give him money for that because it has got fault and three handset he did not come with the charger. I did not know Haruna Rafiu as handset dealers any time he bring handset he always tell me that somebody gave him to sell, the
…………………….M…………………….
time he use to bring those handset to me I did not know that he use to stole them. I don’t know that Haruna Rafiu use to snatch the handset from people. It was when I was arrested at Ibara Police Station that I know.”
It is clear from the decision of trial Judge that the Appellant knew the 1st accused (Haruna Rafiu) before his arrest for receiving the stolen goods. The said Haruna Rafiu was in the habit of selling handset to the Appellant with the story that other people gave him the handsets to sell. It is also not in doubt that the Appellant was an “Okada Rider.” There is also evidence that the said 1st Accused sold the handset without their chargers. It is also evident that the said 1st Accused was not in the business of selling handsets.
Those are the facts which support the findings of the learned trial Judge that any reasonable person in the circumstances would have perceived that the phones sold to the Appellant were not from a lawful source.
Furthermore, the Appellant has admitted in exhibit P11 which was made 4 days after Exhibit P.10 was made, that the said Haruna Rafiu sold him recharge cards and Sagem MYX2 to him. The said Haruna Rafiu told him that the items were worth N35,000.00 but the Appellant bought the items at N2,000.00.
From the foregoing, as I have stated earlier, as has been in a long line of cases by this Court, it is trite law that a free and voluntary confession of guilt made by an accused person, if it is direct and positive and is duly made and satisfactorily proved, is sufficient to warrant a conviction without any corroborative evidence as long as the Court is satisfied with the truth of the confession. See JIMOH YESUFU VS THE STATE (1976) 6 S.C 167, EDET OBOSI VS STATE (1965) N.M.L.R 119, AKPAN VS STATE (1992) 6 NMLR PT 248 439, KIM VS STATE (1992) 4 N.M.L.R (PT 233) 17, EDHIGERE VS STATE (1996) 8.
Having said this, I am convinced that the Prosecutor, at the trial Court had proved their case beyond reasonable doubt.
What is now the bone of contention is whether or not the Appellant should be convicted and sentenced for the offence of receiving goods which are the proceeds of armed robbery or receiving stolen goods in the
…………………….N…………………….
light of the lower Court’s decision in Appeal No. CA/1305/2011.
I hold the view that the Lower Court ought to have taken judicial notice of its decision in HARUNA VS STATE appeal No. CA/1/305/2011 before confirming the sentence of the Appellant.
The Lower Court in that appeal held that the Prosecutor at the trial Court failed to prove the offence of robbery and proceeded to hold that the Complainant’s properties were not obtained by robbery, but merely stolen. The Court went further to state that the accused ought to be convicted under the criminal code for stealing and not for the offence of robbery under the Robbery and Firearms (Special Provision Act).
I have taken into consideration the facts that the Appellant herein was convicted for receiving the goods stolen by Haruna who was convicted by the Lower Court for stealing and not for Armed Robbery.
I agree with the Counsel for the Appellant that the consequence and purport of the decision of the Lower Court ought to have been applied to the sentencing and conviction of the Appellant, who would have been sentenced for the offence of receiving stolen goods, and not receiving goods under Robbery and Firearms Special Provision Act.
The Law is settled that this Court may, where the end of Justice will be properly met reduce the sentence imposed by the Trial Court where the Lower Court omits to appropriately apply its discretion in this regard. See OGIDI VS C.O.P (1960) 5 FSC 251 at 256-257; QUEEN VS EYO & ORS (1962) 1 All N.L.R 515 at 528-529, ADEYEYE & ANOR VS THE STATE (1968) All N.L.R 239 at 241; TSOFOLI VS C.O.P (1971) 7 N.S.C.0 330 at 332-333; ANI VS STATE (1996)5 N.W.L.R (pt.450) 624 at 629-630; OBISI VS CHIEF OF NAVAL STAFF (2002) 2 N.W.L.R (PT.751) 400 AT 417.
In view of the above therefore, this Court hereby reduces the sentence of the Appellant to 3 years imprisonment for receiving stolen property.
This appeal succeeds in part. However, from the record, the Appellant was convicted and sentenced by the Trial Court since the 30th of June 2011. Looking at that date, the Appellant has since served for more than the period of his punishment in custody. In the overall interest of Justice, it is the order of this Court that he be released and set free from the prison custody with immediate effect.
IBRAHIM TANKO MUHAMMAD, J.S.C.: I have had the privilege of reading
…………………….O…………………….
before now, the judgment just delivered by my learned brother, Bage, JSC. I agree with my learned brother’s reasoning and conclusion that the appeal has some merit and should be allowed in part. I, too, allow the appeal in part. I abide by orders made in the lead judgment.
OLUKAYODE ARIWOOLA, J.S.C.: I had the privilege of reading in draft the lead judgment of my learned brother Bage, JSC just delivered. I agree entirely with the reasoning and conclusion that the appeal is meritorious but succeeds in part.
Appeal is allowed in part.
I too will order that the appellant be released from prison forthwith.
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN, J.S.C.: My learned brother, SIDI DAUDA BADE, JSC, obliged me with a draft of the Judgment just delivered. His Lordship has meticulously considered and ably resolved the issue in contention in this appeal.
I agree with him that the prosecution established beyond reasonable doubt that the appellant was found in possession of items that were proved to have been stolen. The appellant’s contention in this appeal is that the prosecution failed to prove guilty knowledge. The law is settled that guilty knowledge may be inferred from the surrounding circumstance such as:
(a) The manner of receipt or delivery of the goods allegedly stolen;
(b) The time of delivery
(c) The actions upon delivery and
(d) The price paid for the goods.
See: Okoroji Vs The State (2002)5 NWLR (Pt. 759) 21 @ 48 D-E; Ekpo Vs The State (2003) 17 NWLR (Pt.849) 392 @ 408 A-B.
At pages 151-153 of the record, the Court below reviewed the findings of the learned trial Judge and agreed with him, rightly in my view, that the following facts supported his finding as to the guilty knowledge of the appellant:
…………………….P…………………….
i. That from his statement, Exhibits P10 it was evident that he knew the 1st accused, Haruna Rafiu before his arrest;
ii. That the 1st accused was in the habit of selling handsets to him with the story that they were given to him by other people to sell;
iii. That the 1st Respondent used to sell the phones to him without their chargers;
iv. That the appellant was an “Okada” rider and the 1st accused was not in the business of selling handsets;
v. The appellant admitted in his statement, Exhibit P11 that the 1st accused sold some recharge cards and a Sagem MYX2 handset to him. These are some of the items reported stolen by the complainant.
vi. That he paid much less than market value for the recharge cards.
vii. The complainant was robbed on 17/1/2007 at about 7.30 p.m and the 1st accused brought the recharge cards and handset to him around 8. 30p.m the same day.
On the basis of these facts the lower Court held at page 153 of the record:
“On the above stated facts, I am of the view that the learned trial Judge was alive to his duty and therefore properly appraised the totality of the evidence before him. This findings are amply supported by the evidence. I therefore hold that the learned trial Judge was right when he convicted the Appellant on the charge preferred against him.”
Now, in paragraph C6 of the appellant’s brief of argument at page 116 of the record, learned counsel drew the Court’s attention to its declaration in CA/I/305/2011: Haruna Rafiu Vs The State delivered on 29/3/2012 wherein the judgment of the trial Court convicting and sentencing Haruna Rafiu (the 1st accused charged along with the appellant) to 21 years imprisonment for the offence of robbery was set aside and imposed in its place a conviction and sentence of 3 years imprisonment for the offence of stealing.
The appeal arose from the same judgment as the one appealed against in the instant appeal. The appellant herein was charged with receiving the proceeds of a robbery from Haruna Rafiu, who on appeal was found guilty of stealing and not robbery as charged and his sentence reduced accordingly.
…………………….Q…………………….
I am in complete agreement with my learned brother, SIDI DAUDA BAGE, JSC that its earlier decision having been brought to its attention via paragraph C6 of the appellant’s brief, the Court ought to have accorded it some consideration when confirming the appellant’s conviction and sentence.
Since the offence of the principal offender, Haruna Rafiu, had been reduced from robbery to stealing and his sentence reduced from 21 years to 3 years, it would amount to a miscarriage of justice for the appellant conviction for receiving robbed property and sentence of 21 years imprisonment to be allowed stand. I therefore allow the appeal in part. I abide by all the consequential orders made in the lead judgment.
AMINA ADAMU AUGIE, J.S.C.: I had a preview of the lead Judgment just delivered by my learned brother, Bage, JSC, and I agree with his reasoning and conclusion.
The Appellant and two other Accused Persons, Haruna Rafiu and Ganiyu Rafiu, were arraigned before the Ogun State High Court. Haruna Rafiu was charged with the offence of armed robbery while Ganiyu Rafiu and Appellant were charged with receiving the goods stolen by said Haruna Rafiu. The trial Court found the Appellant guilty as charged while Ganiyu Rafiu was discharged and acquitted.
The Appellant was duly convicted and sentenced to 21 years imprisonment “for the offence of receiving stolen property under Section 5 of the Robbery and Firearms (Special Provisions) Act”. They both appealed, but the Court of Appeal mitigated the sentence of Haruna Rafiu by convicting him for stealing; not armed robbery.
In the Appellant’s case, the Court of Appeal did not address its mind to its earlier decision in Haruna Rafiu’s case, and affirmed the decision of the trial Court convicting him for the offence as charged. The Appellant’s contention in this Appeal is that since it had earlier held in the Sister case of
…………………….R…………………….
Haruna Rafiu V. State (CA/I/305/2011) that the Prosecution failed to establish the said offence of robbery under the Robbery and Firearms Act rather it was a case of stealing under the Criminal Code and convicted Haruna Rafiu for stealing, the Court of Appeal should have also mitigated his sentence since it found that the goods he was convicted for receiving were stolen under the Criminal Code and were not robbed under the said Act.
I agree entirely with the Appellant. First off, contrary to the argument of the Respondent, it is clear at page 116 of the Record that the learned counsel for the Appellant drew the attention of the Court of Appeal to its earlier decision in Haruna Rafiu V. State, and whether or not it was the same panel of Justices that heard the earlier appeal of Haruna Rafiu, who sat over the Appellant’s appeal, it was the same Court and same Judicial Division that heard both.
It is absurd to have two contradictory decisions in two sister Appeals that share same facts. The Court of Appeal ought to have taken judicial notice of its decision in Haruna Rafiu V. Statebefore affirming the sentence imposed by the trial Court on the Appellant, particularly as the offence with which the Appellant was convicted is predicated on the offence for which Haruna Rafiu was convicted by the trial Court, which was mitigated by the Court of Appeal itself.
In the circumstances, I agree with my learned brother that the sentence imposed on the Appellant ought to be mitigated in line with the decision of the Court of Appeal in Haruna Rafiu V. State.
Thus, the appeal succeeds in part. The Appellant’s sentence is mitigated in line with the said decision of the Court of Appeal in the sister case of Haruna Rafiu V. State from 21- years imprisonment to 3-years imprisonment, and bearing in mind that the Appellant has been in Prison custody since 2011 and has served more than three years of his sentence during the pendency of this Appeal, I order also that he be released from prison custody with immediate effect.
Appearances
Abdullahi Omoloye with him, Vivian Umerie For Appellant
AND
Dr. Olumide Ayeni (Hon. Attorney General of Ogun State) with him, J.O. Mafe, Esq. (A.DDPP Office), Olutunde Abegunde, Esq. and Abdulbasit S. Abdulmalik, Esq. For Respondent
Appearances
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.”
……………………………G……………………………
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.
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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).
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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.
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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;
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(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