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Before Their Lordships
MUSA DATTIJO MUHAMMAD Justice of The Supreme Court of Nigeria
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN Justice of The Supreme Court of Nigeria
CHIMA CENTUS NWEZE Justice of The Supreme Court of Nigeria
EJEMBI EKO Justice of The Supreme Court of Nigeria
SIDI DAUDA BAGE Justice of The Supreme Court of Nigeria
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN Justice of The Supreme Court of Nigeria
CHIMA CENTUS NWEZE Justice of The Supreme Court of Nigeria
EJEMBI EKO Justice of The Supreme Court of Nigeria
SIDI DAUDA BAGE Justice of The Supreme Court of Nigeria
Between
ZENITH PLASTICS INDUSTRIES LIMITED –Appellant
AND
SAMOTECH LIMITED –Respondent
…………………….A…………………….
KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN, J.S.C. (Delivering the Leading Judgment): The respondent herein, as plaintiff before the High Court of Rivers State sitting at Port Harcourt, instituted an action against the appellant, as defendant where, by paragraph 30 of its statement of claim dated 30/12/1996 filed on 6/1/1997, it sought the following reliefs:
“a) N502,400.00 being balance outstanding against the defendant in respect of electrical work carried out on its behalf by the plaintiff in September 1995 and July 1996.
b) N1.9 million being damages and losses plaintiff suffered by reason of the defendant’s failure to pay the contract price as and when due.
c) N20 million general damages for breach of contract and libel of the plaintiff by the defendant.
d) 25% interest per annum on the total sum of N22,402,400.00 from December 1996 until judgment is delivered in the matter and thereafter 25% interest per annum thereon until full payment thereof is made.”
Pleadings were filed and exchanged and evidence led by the parties in respect of their positions. At the conclusion of the trial the Court found in favour of the plaintiff and awarded reliefs (a) and (b) as claimed. It also awarded N10 million as general damages for breach of contract and libel. The defendant/appellant was dissatisfied with the judgment and appealed to the Court of Appeal, Port Harcourt Division.
The facts that gave rise to the suit were ably summarised by the Court below at pages 214-216 of the record, I adopt the summary of facts hereunder as follows:
“The plaintiff and the defendant entered into a contract for the plaintiff to construct an 11 KVA electric power line. The cost of the contract was N1,405,500 (one million, four hundred and five thousand five hundred naira).
The plaintiff completed the construction of the 11 KVA electric power line in September 1995 and demanded payment. The defendant did not pay the debt.
In July 1996, the defendant and its neighbour, Belhope Plastics Ltd. gave the plaintiff a contract jointly. The contract sum was N193,000 (one hundred and ninety three thousand naira). On completion of the contract Belhope Plastics Ltd paid its own share of N96,500, while the defendant did not pay its own share of N96,500 despite demands for payment by the plaintiff.
The defendants indebtedness to the plaintiff stood at N1,502,400 (one million five hundred and two thousand four hundred naira) made up of N1,405,500 on the 11 KVA contract and N96,500 on the contract shared with Belhope Plastics Ltd. Union Bank Plc (the plaintiff Bankers) stopped all credit facilities to the plaintiff, and this affected the execution of plaintiffs SHELL contract which SHELL terminated and which the plaintiff says caused him a loss of N1.9m.
Due to mounting pressure on the plaintiff from its Bankers Union Bank Plc to pay up the loans advanced to it to perform the contracts, the plaintiff authorized the defendant to pay its debt directly to Union Bank Plc. The authorization was an irrevocable authority. See Exhibit B. On receipt of Exhibit B, Union Bank Plc wrote to the defendant to make confidential inquiry about the plaintiff and to confirm the authenticity of Exhibit B. The defendant replied Union Bank Plc.
See Exhibit C. It reads in part.
“… we wish to emphasize that this company has no business relationship whatsoever with SAMOTECH LTD.
Therefore SAMOTECH LTD. irrevocable authority letter dated 19/7/96 should be regarded null and void. We dissociate ourselves from any transaction/s that may exist between your bank and SAMOTECH LTD.”
After exhibit C the defendant paid the plaintiff N1 million. This payment left outstanding balance of N502,500.
After due trial on the plaintiffs statement of claim, the defendants further amended statement of defence, and the reply to statement of defence, the learned trial Judge E.N.T. Ebette J handed down his judgment on 25/3/04 in favour of the plaintiff against the defendant.
The concluding part of the judgment reads:
“…In the event, it is the view of the Court that the plaintiff has proved that the defendant owes it the sum of N502,000 being the outstanding balance unpaid for the contracts it awarded to the plaintiff and the sum of N1.9 million being the amount sustained as a loss for the termination of the contract awarded to it as shown in Exhibit C. The plaintiff is also entitled to the sum of N10,000,000 (ten million naira) as general damages for the breach of contract and Libel of the plaintiff by the defendant.”
In a considered judgment delivered on 12/7/2007 the Court, in dismissing the
b) N1.9 million being damages and losses plaintiff suffered by reason of the defendant’s failure to pay the contract price as and when due.
c) N20 million general damages for breach of contract and libel of the plaintiff by the defendant.
d) 25% interest per annum on the total sum of N22,402,400.00 from December 1996 until judgment is delivered in the matter and thereafter 25% interest per annum thereon until full payment thereof is made.”
Pleadings were filed and exchanged and evidence led by the parties in respect of their positions. At the conclusion of the trial the Court found in favour of the plaintiff and awarded reliefs (a) and (b) as claimed. It also awarded N10 million as general damages for breach of contract and libel. The defendant/appellant was dissatisfied with the judgment and appealed to the Court of Appeal, Port Harcourt Division.
The facts that gave rise to the suit were ably summarised by the Court below at pages 214-216 of the record, I adopt the summary of facts hereunder as follows:
“The plaintiff and the defendant entered into a contract for the plaintiff to construct an 11 KVA electric power line. The cost of the contract was N1,405,500 (one million, four hundred and five thousand five hundred naira).
The plaintiff completed the construction of the 11 KVA electric power line in September 1995 and demanded payment. The defendant did not pay the debt.
In July 1996, the defendant and its neighbour, Belhope Plastics Ltd. gave the plaintiff a contract jointly. The contract sum was N193,000 (one hundred and ninety three thousand naira). On completion of the contract Belhope Plastics Ltd paid its own share of N96,500, while the defendant did not pay its own share of N96,500 despite demands for payment by the plaintiff.
The defendants indebtedness to the plaintiff stood at N1,502,400 (one million five hundred and two thousand four hundred naira) made up of N1,405,500 on the 11 KVA contract and N96,500 on the contract shared with Belhope Plastics Ltd. Union Bank Plc (the plaintiff Bankers) stopped all credit facilities to the plaintiff, and this affected the execution of plaintiffs SHELL contract which SHELL terminated and which the plaintiff says caused him a loss of N1.9m.
Due to mounting pressure on the plaintiff from its Bankers Union Bank Plc to pay up the loans advanced to it to perform the contracts, the plaintiff authorized the defendant to pay its debt directly to Union Bank Plc. The authorization was an irrevocable authority. See Exhibit B. On receipt of Exhibit B, Union Bank Plc wrote to the defendant to make confidential inquiry about the plaintiff and to confirm the authenticity of Exhibit B. The defendant replied Union Bank Plc.
See Exhibit C. It reads in part.
“… we wish to emphasize that this company has no business relationship whatsoever with SAMOTECH LTD.
Therefore SAMOTECH LTD. irrevocable authority letter dated 19/7/96 should be regarded null and void. We dissociate ourselves from any transaction/s that may exist between your bank and SAMOTECH LTD.”
After exhibit C the defendant paid the plaintiff N1 million. This payment left outstanding balance of N502,500.
After due trial on the plaintiffs statement of claim, the defendants further amended statement of defence, and the reply to statement of defence, the learned trial Judge E.N.T. Ebette J handed down his judgment on 25/3/04 in favour of the plaintiff against the defendant.
The concluding part of the judgment reads:
“…In the event, it is the view of the Court that the plaintiff has proved that the defendant owes it the sum of N502,000 being the outstanding balance unpaid for the contracts it awarded to the plaintiff and the sum of N1.9 million being the amount sustained as a loss for the termination of the contract awarded to it as shown in Exhibit C. The plaintiff is also entitled to the sum of N10,000,000 (ten million naira) as general damages for the breach of contract and Libel of the plaintiff by the defendant.”
In a considered judgment delivered on 12/7/2007 the Court, in dismissing the
…………………….B…………………….
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