Reptico S. A. Geneva V. Afribank Nigeria Plc (2013)

LAWGLOBAL HUB Lead Judgment Report

OLUKAYODE ARIWOOLA, J.S.C.

This is an appeal against the judgment of the Court of Appeal, Lagos Division, hereinafter referred to as the Court below, delivered on 15th day of December, 1999 in appeal number CA/L/303/98. The facts of this case are as follows:

The plaintiff, Reptico S.A. Geneva, herein-after referred to as the appellant, had commenced an action by a writ of summons dated 18th September, 1991 in the Lagos Judicial Division of the Lagos State High Court. The statement of claim was subsequently filed on 12th November, 1991 against the Defendant, herein after referred to as the Respondent.

The appellant had by the amended statement of claim filed on 25/3/92 in paragraph 30 claimed as follows:

“the sum of N37,886,000 being the Naira equivalent of US$1,994,000.00 comprising special and general damages, the sum of N17,100,000 being the Naira equivalent of US$900,000.00 the value of a bill of exchange, the subject matter of this suit, N11, 286,000.00 the Naira equivalent of US$594,000.00 being the interest thereon at 12% per annum from 24th March, 1986 to date and N9,500,000.00 the Naira equivalent of US$500,000.00 as general damages, which claim arose when the Defendant confirmed in writing to the plaintiff through the plaintiff’s agent/banker, Swiss Volksbank in Geneva in a letter dated 24th March, 1986 issued in Lagos that funds are available, representing the Naira counter-value of the said bill to settle the bill immediately the defendant received promissory notes for rescheduling of the payment as well as a written admission that the foreign exchange for the said bill was awaiting allocation by the Central Bank of Nigeria upon the deposit of the Naira counter-value thereof with the said Central Bank and it is the duty of the defendant to secure the payment of the bill either immediately or by rescheduling by applying to and complying with the relevant Central Bank or Nigeria rules, regulations and conditions precedent but the defendant failed, refused and or neglected to comply with the said conditions, rules, regulations and procedures. Moreover, in the said letter of 24th March, 1986, the defendant expressly requested Swiss Volksbank to bring the representation therein to the plaintiff’s, knowledge and attention. This was done and the plaintiff relied upon the said representation and suffered loss as highlighted herein.

The plaintiff claims interest on the sum of N17,100,000.00 being the Naira equivalent of US$900,000.00 at 20% per annum until judgment and thereafter at a further rate of 20% per annum until judgment shall have been satisfied.

PARTICULARS OF DAMAGES

SPECIAL DAMAGES:

i. Value of the accepted Bill of exchange N17,100,000.00, the Naira equivalent of US $900.000.00.

ii. Interest on the bill at 12% per annum March, 1986 – September, 1991, N11,286,000.00, the Naira equivalent of US $594,000.00,

iii. General Damages – N9,500,000.00, the Naira Equivalent of US $500,000.00.

Total: – N37,886,000.00 being the Naira equivalent of US $1,994,000.00.

The respondent filed an amended statement of defence to which the appellant filed a reply on 2nd June, 1992.

The case proceeded to trial. The appellant called five (5) witnesses who testified while two (2) persons testified for the respondent. At the conclusion of the trial, the court found that the appellant was entitled to judgment against the respondent in the sum of Seventeen Million, One Hundred Thousand Naira ($17, 100,000.00) being the price of the rice which the respondent was expected to collect and to the appellant’s order. Interest was also awarded on the amount at the rate of 12% per annum from 24th March, 1986 until September, 1991, which amounted to N11, 286,000.00 and at the rate of 12% from October, 1991 until the judgment and thereafter at the rate of 10% per annum being interest on judgment debt until the judgment debt is fully and finally liquidated.