Trenco (Nig) Ltd V African Real Estate And Investment Company Ltd & Anor (1978)

LawGlobal-Hub Lead Judgment Report

N. ANIAGOLU, J.S.C. 

This is an appeal from the judgement of Kassim, J., sitting in the High Court of Lagos, in a suit commenced since June, 1966, in which the plaintiff company claimed variously as follows:

“The Plaintiff seeks as against both defendants jointly and severally an order of declaration that the total payments of 12, 710.3.2pounds by the 2nd defendant Bank to the plaintiff plus bank charges and interest thereon were payment made on behalf of the 1st defendant to the plaintiff and not loan or advances made to plaintiff as customer of the said Bank and the said sums are therefore not recoverable from the plaintiff. Pursuant to a building contract between the plaintiff and the 1st defendant, the 2nd defendant paid the plaintiff a total sum of 12,710.3.2pounds from the funds of the 1st defendant deposited with the 2nd defendant.

The 1st defendant has now committed breach of the said contract, 2nd defendant now threatens to treat the said sums as loan made to the plaintiff, whereas the payments were made to plaintiff on behalf of the 2nd defendant and on its account. Alternatively the plaintiff claims against the 1st defendant the sum of 12,710.3.2pounds plus interest payable thereon, being general and special damages for breach of the said contract.

Lastly the plaintiff further claims against the 1st defendant the sum of 10,000pounds (Ten thousand pounds) sterling, being the estimated profit from the said contract.

Dated this 20th day of June, 1966.”

Counsel for appellant, Mr. Lardner, in the course of the hearing of this appeal limited the amount he claimed to 10,000 pounds instead of 12,710.3.2pounds as claimed in the writ.

Pleadings were filed following the order of the court. Series of applications for amendments to their pleadings were made by the parties and were granted by court resulting in amendments to the statement of claim and defence and a reply filed to the amended statement of defence.

From the pleadings and the evidence the gist of the case of the plaintiffs, a limited liability company with their headquarters in Lagos, was that the 1st defendants in April 1960, engaged them to erect for them “a substantial building” on a piece of land situate at King George Avenue, Yaba, on “agreed contract price” of 60,000.00pounds. It was an oral agreement. The said building to be erected was to be a Hotel which was to be got ready by the plaintiffs against the anticipated influx of foreign visitors to Nigeria for the 1st October 1960 Independence celebrations. The plaintiffs were requested “to work round the clock” in order to ensure the Hotel was ready for that date. After the discussions between the plaintiffs and the Chairman of the Board of Directors of the 1st defendants, DR. GODWIN CHINWENDU MBANUGO who was at the same time a Director of the 2nd defendant Bank, DR. MBANUGO wrote the letter Exhibit 1, addressed to the General Manager (Frederick Sigismund McEwen) of the 2nd defendants who were bankers to the 1st defendants. He handed the letter to the Managing Director of the plaintiff company, Alhaji Awesu Atanda Adeyemi, for him to deliver to Mr. McEwen. This letter (Exhibit 1) dated 12th April 1960, was the hub around which the case of the plaintiffs and the arguments of the parties hinged. For its importance we reproduce the letter hereunder:

“AFRICAN REAL ESTATE AND INVESTMENT CO. LTD.

Directors A.C.B. Building

P.O. Box 171

ENUGU

12th April, 1960