Zaccheus Abiodun Koya V. United Bank For Africa Ltd. (1997)

LAWGLOBAL HUB Lead Judgment Report

U. ONU, J.S.C. 

This is an appeal against the judgment of the Court of Appeal, Ibadan Division (Coram: Akanbi, JCA. as he then was, Omololu-Thomas, J.CA. and Ogwuegbu, J.C.A. as he then was) delivered on the 1st day of September, 1988. In the action commenced on the 13th day of May, 1985. the plaintiff herein appellant, claimed against the defendant, now respondent as follows:-

“The plaintiff’s claim against the defendant is for special and general damages for negligence particularised below, arising out of the reckless, careless and negligent manner in which the defendant allowed its Bank Draft number HO. 044106 of 20th October, 1983. drawn in favour of West Virginia University Account ML Olusegun O. Koya to be negotiated in London in January, 1984 by its correspondent bank to a wrong person not the beneficiary, which wrongful act resulted in untold suffering and hardship on the beneficiary and thereby suffered damages.”

Particulars of damages

(1) Special damages

(a) The sum of $10,000 U.S. Dollars wrongfully paid by the defendant its servant and or agent to a wrong person not the beneficiary…………..$10,000.00.

(2) General damages

(b) Being aggravated damages for the hardship and suffering of the beneficiary and the nonchalant attitude of the defendant when informed of its carelessness, recklessness and negligence………..N50,000.00″

Pleadings were duly filed and exchanged by the parties and at the close of evidence led by either side, counsel addressed the trial court. At the close of the case, the learned trial Judge (Ibidapo-Obe, J.) in a reserved judgment delivered on 10th June, 1985, found negligence proved against the respondent, stating inner alia:- “In the light of all these facts and the law in support, I am of the clear view that the defendant bank is liable to the plaintiff in negligence for the sum of $10,000.00 U.S. Dollars. This answers my questions 1 & 2 posed in this judgment.

The claim for general damages of N50,000.00 is based on the “non-chalant attitude of the defendant when informed of its carelessness and negligence. I have said enough on this and in my view, the defendant bank was perhaps slow in taking action but not careless or reckless.

It is my view therefore, that the plaintiff is entitled to damages, but certainly not to aggravated damages of N50,000.00. Taking all the facts in this case into consideration, I assess general damages of N5,000.00 (Five Thousand Naira) in favour of the plaintiff.

In sum. the plaintiff’s case succeeds and the defendant bank is found liable to the plaintiff in the sum of $l 0,000.00 U.S. Dollars as the proceeds of the draft cheque dated 20/10/83 and general damages of N5,000.OO (Five Thousand Naira).”

The respondent being dissatisfied, appealed to the Court of Appeal, Ibadan (hereinafter referred to as the court below) which set aside the trial court’s decision on 1st September, 1988 thus allowing the respondent’s appeal in its entirety. The appellant who was aggrieved by this decision has now appealed to this court upon nine grounds contained in its Notice of Appeal dated 9th November, 1988.

The facts of the case briefly stated are that on 20th October, 1983 the appellant who was a longstanding customer of the respondent purchased $10,000.00 (Ten Thousand Dollars) draft payable to West Virginia University in the United States of America for the account of his son, Mr. Olusegun O. Koya, who was then a student there. The draft which was payable on presentation to the French American Banking Corporation in New York, having been collected by the appellant for the purpose of transmitting same to his son, later wrote on 25th January, 1984 to inform the respondent that the draft got lost in transit between the Ibadan General Post Office and U.S.A. and requesting that it be stopped. The truth of the matter, however, was that the draft had been paid on 12th January. 1984 through Oman Bank Limited in London.