Mobil Oil Nigeria Limited & Anor V. National Oil & Chemical Marketing Company Limited & Anor (2000)

LawGlobal-Hub Lead Judgment Report

ADEREMI, J.C.A.

In the court below (High Court of Lagos State) the plaintiff/respondent (National Oil and Chemical Marketing Company Limited) claimed against the 1st defendant/appellant Mobil Oil Nigeria Limited, the 2nd defendant/appellant, African Petroleum Limited and the 3rd defendant/respondent and Sungas Company Limited jointly and severally or severally as follows:-

(i) The sum of N1,474,813.42 (One Million, Four Hundred and Seventy Four Thousand, Eight Hundred and Fifteen Naira and Forty Two Kobo)(sic) being the amount due from and owing by the said defendants to the plaintiff for LPG products supplied by the plaintiff at the said defendant’s request and freight charges.

(ii) Interest at the rate of 81/2% per annum from the date of judgment and thereafter at the rate of 6% per annum until judgment debt and costs has been fully paid.

Pleadings which were finally settled and exchanged among the parties are the statement of claim, with the leave of court, the amended statement of defence of the 1st defendant, with the leave of court, the amended statement of defence of the 2nd defendant, the statement of defence of the 3rd defendant and the plaintiff’s reply.

After taking evidence of the witnesses called by the parties and the final addresses of their respective counsel the trial Judge in his reserved judgment granted the reliefs claimed by the plaintiff/1st respondent against the 1st and 2nd defendants only, in the following terms: (a) the 1st defendant/appellant- Mobil Oil Nigeria Limited to pay to the plaintiff/respondent (National Oil and Chemical Marketing Co. Ltd.), the sum of N1,347,484.11 (One Million, Three Hundred and Forty Seven Thousand, Four Hundred and Eighty Four Naira, Eleven Kobo) together with interest at the rate of 4% per annum from the date of judgment till the date of the Liquidation of the judgment debt, and (b) the 2nd defendant/appellant (African Petroleum Limited to pay to the plaintiff/respondent (National Oil and Chemical Marketing Co. Ltd.), the sum of N231,996.36 (Two Hundred and Thirty – One Thousand, Nine Hundred and Ninety Six Naira and Thirty Six Kobo) together with interest at the rate of 4% per annum from the date of judgment till the date of the liquidation of the judgment debt.

Being dissatisfied with the said judgment, the 1st defendant/appellant filed a Notice of Appeal which contains six (6) grounds set-out below;

(1) Judgment is against the weight of evidence.

(2) The learned trial Judge misdirected himself on the first issue for determination (which misdirection led him to find against the 1st defendant) when he stated thus:

“Whether Mobil Oil Ltd. (1st defendant) which sponsored and/or authorised Sungas Co. Ltd. (3rd defendant) to lift or bring LPG, from consignment of petroleum products and LPG procured by National Oil Ltd. (plaintiff) should be held responsible for payment or settlement of Debit Notes or Invoices for the cost of LPG Lifted and also freight charges and other incidental expenses incurred by the plaintiff on such lifting.

Particulars of Misdirection:

(a) The main issue for determination was not whether it was Mobil that sponsored Sungas for the lifting of LPG products since that point was never in dispute between the parties.

(b) Whether the particular consignment of LPG covered by the invoices Exhibits P1, and P3 were in fact allocated to Mobil (1st defendant) by the plaintiff and same lifted by Sungas from the AP depot as a result of the nomination by Mobil.

3. Having regard to (a) the findings of the learned trial Judge that during the period covered by the plaintiffs claim, Sungas also lifted LPG from the same AP depot as a result with AP tripartite agreement with AP.

(b) The evidence of Sungas which was not disbelieved by the trial judge that no LPG was lifted by it from the AP depot since January, 1979 on Mobil’s Account.