Zenith Plastics Industries Limited V. Samotech Limited (2018)

LAWGLOBAL HUB Lead Judgment Report

KUDIRAT MOTONMORI OLATOKUNBO KEKERE-EKUN, J.S.C.

The respondent herein, as plaintiff before the High Court of Rivers State sitting at Port Harcourt, instituted an action against the appellant, as defendant where, by paragraph 30 of its statement of claim dated 30/12/1996 filed on 6/1/1997, it sought the following reliefs:

“a) N502,400.00 being balance outstanding against the defendant in respect of electrical work carried out on its behalf by the plaintiff in September 1995 and July 1996.

b) N1.9 million being damages and losses plaintiff suffered by reason of the defendant’s failure to pay the contract price as and when due.

c) N20 million general damages for breach of contract and libel of the plaintiff by the defendant.

d) 25% interest per annum on the total sum of N22,402,400.00 from December 1996 until judgment is delivered in the matter and thereafter 25% interest per annum thereon until full payment thereof is made.”

Pleadings were filed and exchanged and evidence led by the parties in respect of their positions. At the conclusion of the trial the Court found in favour of

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the plaintiff and awarded reliefs (a) and (b) as claimed. It also awarded N10 million as general damages for breach of contract and libel. The defendant/appellant was dissatisfied with the judgment and appealed to the Court of Appeal, Port Harcourt Division.

The facts that gave rise to the suit were ably summarised by the Court below at pages 214-216 of the record, I adopt the summary of facts hereunder as follows:

“The plaintiff and the defendant entered into a contract for the plaintiff to construct an 11 KVA electric power line. The cost of the contract was N1,405,500 (one million, four hundred and five thousand five hundred naira).

The plaintiff completed the construction of the 11 KVA electric power line in September 1995 and demanded payment. The defendant did not pay the debt.

In July 1996, the defendant and its neighbour, Belhope Plastics Ltd. gave the plaintiff a contract jointly. The contract sum was N193,000 (one hundred and ninety three thousand naira). On completion of the contract Belhope Plastics Ltd paid its own share of N96,500, while the defendant did not pay its own share of N96,500 despite demands for payment by the

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