Abubakar V. Michelin Motor Tyre Services Ltd (2020)

LAWGLOBAL HUB Lead Judgment Report

OLABODE RHODES-VIVOUR, J.S.C.

The Respondent is a company engaged in the manufacture of tyres, while the appellant is a businessman. In 1989, the appellant entered into a dealership contract with the respondent. That is to say the appellant became a motor tyre dealer/distributor.

According to the terms of the contract the appellant was to pay and he paid a refundable deposit which was retained by the respondent. In the course of the contract a dispute arose as to whether the appellant was indebted to the respondent and whether the respondent was right to withhold the refundable deposit and bonuses to offset part of the indebtedness. In 1999 the appellant demanded for the refundable deposit and bonuses. The respondent was unyielding and communicated his refusal to the appellant in its letter dated 26 July 1999.

Aggrieved by the attitude of the respondent, the appellant as claimant filed suit No: PLD/J/153/2007 before a Plateau State High Court. His claim against the respondent/defendant was for:

​(a) The sum of N4,400,000.00 (Four million, four hundred thousand Naira) only being the refundable deposit the plaintiff has with the defendant.

(b) The sum of N1,936,919.54 (One million, Nine hundred and thirty six thousand, nine hundred and nineteen naira fifty four kobo) only being 1999 end of year and progress bonuses.

(c) 10% interest per annum therefrom 1999 till final payment of the entire sum.

(d) The sum of N112,500.00 per week as special damages from 1 January 2000 to 26 January 2001 i.e. for 15 weeks.

(e) The cost of this action.

A similar dealership contract was executed by the respondent with Alhaji Abubakar Baba Umar. He also sued the respondent on identical facts. That was suit No: PLD/J/152/2007. His appeal would be addressed in SC.141/2014.

Dakyen CJ Plateau State sitting in Jos presided. His lordship ordered both suits consolidated, and in a considered judgment delivered on 1 June 2011, His lordship found in favour of the claimant’s as follows:

“The plaintiff in suit No: PLD/J/152/07 is awarded the reliefs in his paragraph 15 (a) (b) and (c).

With regards to claim in paragraph 15 (d) and (e) I decline to award same, having regard to the fact that the plaintiffs in this suit had kept the business in abeyance alter the death of Alhaji Kawuje.

The plaintiff in suit No: PLD/J/153/07.