HAJIA UMMA MUKTAR AHMED MOHAMMED V NIGERIA DEPOSIT INSURANCE CORPORATION
March 3, 2025ANTONIO OIL COMPANY LIMITED V ASSETS MANAGEMENT CORPORATION OF NIGERIA (AMCON)
March 3, 2025Legalpedia Citation: (2024-06) Legalpedia 89436 (CA)
In the Supreme Court of Nigeria
Fri Jun 21, 2024
Suit Number: SC.789/2017
CORAM
Uwani Musa Abba Aji Justice of the Supreme Court of Nigeria
Helen Moronkeji Ogunwumiju Justice of the Supreme Court of Nigeria
Chidi Nwaoma Uwa Justice of the Supreme Court of Nigeria
Stephen Jonah Adah Justice of the Supreme Court of Nigeria
Abubakar Sadiq Umar Justice of the Supreme Court of Nigeria
PARTIES
- EL-ASBAB HOTEL & INVESTMENT INDUSTRIES NIGERIA LTD
- MANSUR IBRAHIM BABANGIDA
APPELLANTS
ECO BANK NIGERIA PLC
RESPONDENTS
AREA(S) OF LAW
BANKING LAW, TORT LAW, DAMAGES, DETINUE, CIVIL PROCEDURE, CONTRACT LAW, CONSTITUTIONAL LAW, EVIDENCE LAW
SUMMARY OF FACTS
On December 6, 2007, the second appellant applied to the respondent bank for a bank guarantee in the form of a bond in favor of SOCACIC (W/A) LTD. The respondent demanded the appellants’ Certificate of Occupancy as security for the bond. The second appellant deposited the Original Certificate of Occupancy No B1/G/2962 with the respondent.
Due to a change in government policy, the purpose for which the performance bond was procured could not materialize. After the bond’s expiration, the second appellant made several written demands for the return of the Certificate of Occupancy, but the respondent refused. The appellants initiated legal action in 2013, claiming the certificate was needed to raise funds for building an international hotel.
The trial court awarded N30 million in damages and ordered the respondent to pay N100,000 daily if the certificate was not released within 7 days. The Court of Appeal reduced the damages to N100,000, leading to this appeal.
HELD
- The appeal was allowed.
- The Court of Appeal’s award of N100,000 was set aside and replaced with N20 million in damages.
- The order for payment of N100,000 daily if the document is not released within 7 days was maintained.
- Each party to bear their respective costs.
ISSUES
- Whether the Court of Appeal erred in holding that only reasonable damages could be awarded for the retention of the chattel after compelling its return.
- Whether the Court of Appeal erred in reducing the damages from N30 million to N100,000 for the retention of the Certificate of Occupancy.
RATIONES DECIDENDI
DISTINCTION BETWEEN TORT AND CONTRACT
“A Contract may be defined as a legally binding agreement between two or more persons by which rights are acquired by one party in return for acts or forbearances on the part of the other… however, a tort on the other hand may be defined generally as a civil word involving a breach of duty fixed by law.” – Per STEPHEN JONAH ADAH, J.S.C.
NATURE OF DETINUE
“Detinue is defined to be a retention of a plaintiff’s chattel or goods by defendant which is significantly evidenced by the refusal of the defendant or his agent to release or return the goods to the plaintiff on demand.” – Per STEPHEN JONAH ADAH, J.S.C.
APPELLATE INTERFERENCE WITH DAMAGES
“When there is an appeal against an award of damages a trial Court, an appellate Court ought not to upset an award of damages by a trial Court merely because if it had tried the matter, it might have awarded a different figure.” – Per STEPHEN JONAH ADAH, J.S.C.
RAISING ISSUES SUO MOTU
“The impropriety of raising an issue other than the issues of jurisdiction suo motu has never been tolerated in our clime. The right of fair hearing is a major fundamental right under Chapter iv of the Constitution.” – Per STEPHEN JONAH ADAH, J.S.C.
EXERCISE OF DISCRETION IN DAMAGES
“An award of damages is usually an exercise of discretion. A valid exercise of discretion is one that is exercised judicially and judiciously having regard to the facts and circumstances of the case.” – Per STEPHEN JONAH ADAH, J.S.C.
APPELLATE REVIEW OF DAMAGES
“It is only where the appellate Court is convinced that an award of damage is entirely an erroneous estimate that it will interfere.” – Per UWANI MUSA ABBA AJI, J.S.C.
PUNITIVE DAMAGES FOR BANK MISCONDUCT
The attitude of the management of the Respondent Bank has been singularly cavalier, irresponsible and unconscionable. How can the economy grow and people prosper when there are people totally without any sense of propriety or empathy for others?” – Per HELEN MORONKEJI OGUNWUMIJU, J.S.C.
GROUNDS FOR INTERFERENCE WITH DAMAGES
“The compensation should reflect not only the pecuniary loss of the victim but also the abhorrence of society and the law for gross violation of human rights.” – Per CHIDI NWAOMA UWA, J.S.C.
REDUCTION OF DAMAGES – PROPER APPROACH
“Having rightly observed the above, one wonders why the same Court would ridiculously reduce the award of damages of Thirty Million Naira (N30,000,000.00) awarded by the trial Court to One Hundred Thousand Naira (N100,000.00) over an issue of mitigating loss raised suo moto by the Court without allowing the Appellants to address the Court on the issue.” – Per CHIDI NWAOMA UWA, J.S.C.
PRINCIPLES FOR APPELLATE INTERFERENCE
“An appellate Court will interfere where the trial Court acted under a mistake of law or acted in disregard of principles or acted under a misapprehension of facts or took into account irrelevant matters or failed to take account of relevant matters.” – Per CHIDI NWAOMA UWA, J.S.C.
RECOVERY IN TORT
“The principle is that in a claim for damages, whether in tort or contract, the plaintiff recovers only what he has lost; this is subject to rule of remoteness.” – Per STEPHEN JONAH ADAH, J.S.C.
JUDICIAL DISCRETION IN DAMAGES
“A Court can increase the general damages awarded to a plaintiff, having regard to the fallen value or purchasing power of the Naira and in that case, the fluctuating currency.” – Per CHIDI NWAOMA UWA, J.S.C.
COURT’S APPROACH TO SUO MOTU ISSUES
“It is trite law that a Court has no jurisdiction to raise an issue suo motu and unilaterally resolve it in its judgment without hearing both sides, however clear the issue may appear to be.” – Per STEPHEN JONAH ADAH, J.S.C.
