ABDUL HAMID OJO V. PRIMATE E.O. ADEJOBI & ORS
August 4, 2025SAMUEL FADIORA & ANOR V. FESTUS GBADEBO & ANOR
August 4, 2025Legalpedia Citation: (1978-03) Legalpedia (SC) 76111
In the Supreme Court of Nigeria
Thu Mar 9, 1978
Suit Number: SC. 244/1976
CORAM
DARNLEY A.R. ALEXANDER, JUSTICE, SUPREME COURT
MOHAMMED BELLO, JUSTICE, SUPREME COURT
OLABODE RHODES-VIVOUR
PARTIES
HIRAT ADERINSOLA BALOGUN
APPELLANTS
THE NATIONAL BANK OF NIGERIA LTD
RESPONDENTS
AREA(S) OF LAW
BANKING – DISHONOUR OF CHEQUES- DAMAGES
SUMMARY OF FACTS
The appellant, a solicitor, issued a cheque in respect of her clients account which was unjustifiably dishonoured by the respondent. The trial court awarded her the sum of N10 as damages on the ground that she did not plead and prove actual damages
HELD
The court allowed the appeal and held that there was no need for the appellant to plead and prove actual damage in order to be entitled to substantial damage.
ISSUES
Whether the Appellant is entitled to substantial damages for dishonour of her cheque by the Respondents without any allegation, in her pleadings, of special or actual damage flowing from such dishonour of the cheque and proof of the same
RATIONES DECIDENDI
WHETHER A PERSON ENGAGED IN BUSINESS NEED TO PROVE ACTUAL DAMAGE TO BE ENTITLED TO SUBSTANTIAL DAMAGES FOR WRONGFUL DISHONOR OF CHEQUE
people engaged in business need recover substantial damages without proof of actual loss because of the damage deemed to be necessarily done to their credit, and/or reputation in business, by the unjustified action of the bankers; per se the act could imply, unjustifiably, insolvency or dishonesty on the part of the person engaged in business – Idigbe J.S.C
LIABILITY OF A BANK FOR WRONGFUL DISHONOUR OF CHEQUES
Refusal by a banker to pay a customers cheque when he holds in hand an amount, equivalent to that endorsed on the cheque, belonging to the customer amounts to a breach of contract for which the banker is liable in damages- Idigbe J.S.C
CASES CITED
Joachimson v. Swiss Bank Corporation (1921) 3 KB 110 at 127
Hadley v. Baxendale (1854) 9 Exch. 341
Pyke v. Hiberman Bank (1905) IR 195;
Milward v. Lloyds Bank – unreported 1924
Marzetti v. Williams (1830) 1 B & Ad 415
STATUTES REFERRED TO
Not Available
