Haston (Nigeria) Limited V. African Continental Bank Plc (2002)

LAWGLOBAL HUB Lead Judgment Report

E. OGUNDARE, J.S.C.

The plaintiff, who is now appellant before us, was at all time relevant to this case, a current account customer of the defendant bank, who is now the respondent; the plaintiff opened and maintained account No. 05604 at the calabar branch of the defendant bank. The sole signatory to the account was one Victor Ndoma Egba who was described on the mandate card lodged with the bank as the plaintiff’s chairman. Victor Ndoma Egba’s specimen signature was given to the bank, as well as his passport photograph. The said Ndoma Egba a legal practitioner was either sole or joint signatory to other accounts at the said calabar branch of the defendant Bank.

On 30th March, 1993, Victor Ndoma Egba discovered on his visit to the calabar branch of the bank that the account of Ndoma Egba. Ebri &. Co., legal practitioners, of which he was a joint signatory with his partner Richard David Ebri, had been debited with some unauthorized withdrawals. This prompted him (Ndoma Egba) to call for the ledgers of other accounts of which he was a signatory. On going through the ledger of plaintiff’s account No.05604 he discovered that that account too had been debited with some unauthorized withdrawals. He demanded for the cheques relating to the withdrawals. He discovered that the cheques dated 11th February, 1993 for N158,000.00, 16th February, 1993 for N52,000.00 and 8th March, 1993 for N2,500.00 respectively bore signatures purporting to be his but which were obviously forged.

The plaintiff demanded of the defendant bank that her account be credited with the said fraudulent withdrawals, and other instruments drawn on the account. Plaintiff also made a report to the police. The defendant bank appeared not to have given the plaintiff any cooperation in the matter as it ignored all the latter’s demands. This led the plaintiff to institute the action leading to this appeal, claiming:

“(i) N212,700.00 being money fraudulently withdrawn from the plaintiff’s account No. 05604 as a result of the defendant’s negligence and collusion.

(ii) Interest on the principal sum calculated at the rate of 54% per annum from the date of withdrawal until Judgment.

(iii) N2(two Million Naira) being general damages for breach of contract, negligence and loss of reputation.”

Pleadings were ordered, filed and exchanged and by orders of court amended and further amended. By its further amended statement of claim, plaintiff increased the damages claimed in claim (iii) to read:

“N5million being damages for breach of contract, negligence and loss of reputation.”

The action proceeded to trial at which Victor Ndoma Egba and one Paul Chidindu, a police handwriting expert testified for the plaintiff. An official of the defendant bank, Christian Uchechukwu Okwula testified for the defendant. After addresses by learned counsel for the parties the learned trial Judge, in a reserved judgment, found:

“1. I had during the course of this proceedings examined exhibits I-1d, I had no hesitation nor reservation whatsoever in coming to the conclusion that the signatories on them are quite different from that on the mandate card exh. 2 and that the signatures on exhibits 1-1d are forgeries. The difference is so clear and glaring that one does not even need to be a handwriting expert to come to such inevitable conclusion.”

2. That exhibits 1-1d were honoured with such amateurish forgeries amazes me.”
3. The plaintiff has proved the forgeries beyond reasonable doubt.”

He adjudged:

“Finally, I hereby enter judgment for the plaintiff as follows:-

(1) N212,700.00 being money fraudulently withdrawn from the plaintiff’s account no. 05604 as a result of the defendant’s negligence and collusion.