Rahman Brothers Limited V. Nigerian Ports Authority (2019)

LAWGLOBAL HUB Lead Judgment Report

WALTER SAMUEL NKANU ONNOGHEN, C.J.N.

This is an appeal against the judgment of the Court of Appeal Holden at Benin in appeal No. CA/B/289/2006 delivered on the 13th day of May, 2010 in which the Court affirmed the finding of the trial Court of negligence against the respondent/cross appellant, but reduced the quantum of damages awarded in favour of appellant from N242,530,889.50k to 420,000,000 on the ground that appellant’s claims were in the nature of special damages which were not strictly proved by the rules of Court.

This appeal is therefore against the reduction of award of damages and arrears of rent made in favour of the respondent by the lower Court.

It is important to note that the respondent has cross appealed against the decision of the lower Court affirming the jurisdiction of the trial Court to entertain a cause of action based on negligence.

The facts of the case can be briefly stated as follows:

By a Statement of Claim filed at the Federal High Court in suit No. FHC/B/CS/11/1998 appellant, as plaintiff claimed against the respondents, then defendants as follows:

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“WHEREUPON the plaintiff claims against the defendants jointly and severally the sum of TWO HUNDRED AND FORTY-TWO MILLION FIVE HUNDRED AND THIRTY THOUSAND EIGHT HUNDRED AND NINETY-NINE NAIRA FIFTY KOBO (N242,530,899:50) as DAMAGES FOR NEGLIGENCE caused by the defendant resulting in the loss of 13.365 Teak logs (9,448,029) cubic metres volume.”

On the other hand, the 2nd defendant, who is respondent/cross appellant in the instant proceedings, counter claimed against the plaintiff/appellant/cross respondent as follows:-

“22. Wherefore the 2nd Defendant claims from the plaintiff:

i. the sum of N12.5 million under its indemnity obligation to the 2nd Defendant as prescribed by the terms of licence as well as under the general law

ii. The sum of N1,317,123 being the outstanding balance of rents payable in respect of the appropriated area under licence to date of fire incident.”

The respondent was appellant’s landlord at the New Wart Port in Delta State who let out a storage space (facility) to the appellant to store teak log of wood for sale to oversea customers. The tenancy arrangement was regulated by

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