CORAM
GEORGE B. A. COKER, CHIEF JUSTICE OF NIGERIA
IRIKEFE, JUSTICE, SUPREME COURT
OBASEKI, JUSTICE, SUPREME COURT
PARTIES
ANDREW O. AJUFO
APPELLANTS
CHRISTOPHER AJARBOR
OKAFOR DIBA
N. NNONYELI
MERCURY ASSURANCE CO. LTD
RESPONDENTS
AREA(S) OF LAW
LAW OF INSURANCE – PARTIES TO AN ACTION- LAW OF CONTRACT
SUMMARY OF FACTS
The appellant, an insurance company, was joined to an action in which the respondent claimed damages for negligence against the driver and owner of a vehicle.
HELD
The court allowed the appeal.
ISSUES
Whether it was right for the appellant to be joined in the proceedings
RATIONES DECIDENDI
WHETHER A THIRD PARTY CAN SUE AN INSURANCE COMPANY
A third party could not sue an insurance company. This must be so as there would be no privity of contract between the parties, and even if such a right were conferred by a statute, such as Section 10 of the Motor Vehicle (Third Party Insurance) Act, Cap. 126 Laws of the Federation of Nigeria, it would still be inappropriate to bring in the insurer as a party, except, perhaps, by way of third party proceedings based on a contract of indemnity, if any- Irikefe J.S.C
CASES CITED
Odubanjo & Ors. v. New India Assurance Coy. Ltd. S.C. 85/69 (unreported Supreme Court decision – delivered on 8/10/71)
Post Office v. Norwich Union Fire Insurance Society Ltd (1967) 1 AER p. 577
STATUTES REFERRED TO
Not Available