Chuka Okoli & Associates V. Crusader Insurance Co. Nig. Ltd (1994)

LAWGLOBAL HUB Lead Judgment Report

OGWUEGBU, J.S.C.

This appeal arose from the proceeding initiated by the respondents herein in the High Court of Lagos State sitting in Lagos. By a motion on notice brought under Order 4 of the High Court of Lagos (Civil Procedure) Rules, 1972 and Sections 15(4) and 16 of the Legal Practitioner Decree No. 15 of 1975, the respondents prayed the court for the following orders:

“1. Leave to change its counsel that is Messr. Chuka Okoli and Associates of Investment House. 21/25 Broad Street, Lagos.

2. For taxation of the bill of charges of Messrs Chuka Okoli and Associates of 21/25 Broad Street, Lagos dated the 9th of September, 1985.
3. For an order that pending the taxation of the said bill (and subject to the giving of a suitable undertaking) the firm Messrs Chuka Okoli and Associates of 21/25 Broad Street, Lagos to deliver to the defendant/applicant all documents handed over to that firm for the prosecution of this case on its behalf.”

This application was filed on 27th September, 1985. The facts of the case are that the respondents retained the appellants who are legal practitioners to conduct the defence of a suit filed by one Joseph Nahman against the respondents in the High Court of Lagos State (Suit No. LD/985/82). The appellants were also retained to prosecute a counter-claim in the same suit.

There were exchanges of letters between the parties as to the fees payable by the respondents to the appellants for their services. In the course of the correspondences, an agreement was reached for the payment of the sum or N55,000.00 to the appellants for the defence of the said suit LD/985/82 together with the counter-claim.

Following the agreement, the appellants delivered a bill of charges pursuant to S.14 of the Legal Practitioners Act. 1975 for the agreed remuneration on 18th April, 1983 (See pages 81-83 of the record of appeal) On receipt of the bill of charges, the respondents by a letter dated 26/4/83, made a part payment of N10,000.00 to the appellants.

The appellants having accepted the brief, entered appearance, filed pleadings and took all procedural steps in the conduct of the defence and the counter-claim. They also made court appearances spanning over a period of three years.

The respondents unilaterally repudiated the said contract by a letter dated 21st August, 1985 and retained the services of another counsel. Thereupon, the appellants on 24th September, 1985 made a demand for the immediate payment of the balance of the agreed fees (N45,302.00),

The above are the summary of the facts that gave rise to the proceedings leading to this appeal.

The court of trial granted respondents leave to change counsel and ordered the appellants to deliver all documents handed over to them for the prosecution of the case to the respondents, Prayer two was referred to the Assistant Chief Registrar of the High Court for taxation.

The appellants were not satisfied with the orders made by the trial court and appealed to the Court of Appeal. Lagos Division which court dismissed their appeal. They have further appealed to this court.

The issues formulated by the appellants as arising for determination having regard to the grounds of appeal filed are as follows:-

(i) Whether the application for taxation of the bill of charges brought after two years and five months from the delivery of tile said bill of charges was statute barred,

(ii) Whether there was binding contract for an agreed amount of fees payable between the appellants and the respondents for which a bill of costs was delivered and if the answer is yes, whether it was proper to refer the assessment of damages for the repudiation of the said contract to a taxing officer to be ascertained on quantum meruit basis in the face of express provision for remuneration which the contract between the parties contained.