Judgment
FATIMA OMORO AKINBAMI, J.C.A. (Delivering the Leading Judgment ): This appeal is against the judgment of the High Court of Lagos State (hereinafter addressed as “the lower Court”), presided over by Honourable Justice O. A. OGALA, in Suit No LD/132/2012 delivered on 14th November, 2016. Before the lower Court, the Appellants were the defendants, whilst the Respondent was the Claimant. The brief facts of this case are that the Respondent is a company with its office at No 5 Bombay Cresent Apapa, Lagos.
The 1st Appellant is a shipping company, common carrier for reward, with office at Karachi, Pakistan and the owners of MV Bright Star.
The 2nd Appellant is a Limited Liability Company incorporated under the laws of the Federal Republic of Nigeria, and a local corresponding agent of 1st Appellant. The Respondent averred that the 1st Appellant had employed its services on several occasions to perform different contracts including repair work on several machineries/auxiliary machines, exhaust valves, fabrication of spares, rental of the Respondent’s 500KVA, 400 volts generating set, and two other generating sets belonging to the Respondent all in respect of the 1st Appellants’ ship, MV Bright Star 1.
The Respondent claimed that on or about 3/3/2006, the 1st Appellant requested it to supply to it, a brand new generating set 350 KVA 440 Volts 60 HZ. That it submitted its quotation for N10 Million to the 1st Appellant, which it accepted. Respondent then demanded 50% advance payment from 1st Appellant. This was declined by 1st Appellant. Respondent then demanded for a guarantee from any of the companies 1st Appellant had dealt with in Nigeria. A Mr.
Pam Bot Mang the Managing Director of 2nd Appellant was introduced to the Respondent, and he furnished it with the required payment guarantee and backed it up with a first City Monument bank cheque postdated to 24/3/2003 in favour of the Respondent being the value of the contract.
Thereafter Respondent armed with the letter of guarantee, postdated cheque and invoice from Generator Warehouse Ltd, the MD of the Respondent went to its bank, the then Citizen’s bank Apapa Branch and requested for finance to supply the generating set. Respondent stated that after the meeting with the bank officials Mr. Pam Bot Mang convinced it to buy the generating set from Mikano International Generator Ltd. After the inspection of the generating set by the Master of the 1st Appellant, Respondent arranged for the delivery to the ship on 8/3 2006.
