HIRAT ADERINSOLA BALOGUN V. THE NATIONAL BANK OF NIGERIA LTD

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