Mobil Oil Plc V. Drexel Energy and Natural Resources Ltd. & Ors (2003)

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OLUFUNLOLA OYELOLA ADEKEYE, J.C.A. 

This appeal is against the ruling of the High Court of Justice Oyo State Ibadan Judicial Division delivered on the 16th of November, 1999.

The facts of the case at the court below are that the 4th and 5th respondents in this appeal commenced this action as plaintiffs against the Ist-3rd respondents as Ist-3rd defendants and the appellant as 4th defendant in the Ibadan Judicial Division of the High Court of Justice Oyo State on the 31st of March, 1998.

In the writ of summons and statement of claim filed on the 6th of April 1998 – the plaintiffs claimed against the defendants as follows:-

(1) The sum of N20,635,323.69k (Twenty million, six hundred and thirty five thousand, Three hundred and twenty three Naira sixty nine kobo) being the balance as at 6/4/98 of the amount of N17,586,000 (Seventeen million, five hundred and eighty-six Naira) plus interest bank charges etc. on the principal amount borrowed by the 1st defendant with the 2nd and 3rd defendants as guarantors in October 1996 from the 1st plaintiff with the 2nd plaintiff as mediator on terms and conditions specified in the letter dated 2nd of October, 1996, which sum the defendants failed, neglected and refused to pay despite repeated demands.

(ii) Interest on the said sum at the 25% per annum from the said 6/4/98 till payment.

(iii) Against the 4th defendant only, the sum of N14,841.000 being damages for the negligence of the 4th defendant in allowing and facilitating the 1st defendant to divert the payment of N14,841,000 made to the 4th defendant by the 1st plaintiff directly for a specific purpose to a different purpose in consequence of which diversion the 1st plaintiff suffered loss.

(iv) Against the 4th defendant only, interest rate of 25% per annum on the said amount from the date of the receipt of the said N14,841,000 until payment of the said sum to the 1st plaintiff.

(v) And for an order compelling 1st, 2nd and 3rd defendants to perfect the mortgage of the properties mentioned in paragraphs 30 supra in favour of the 1st plaintiff.

The appellant as 4th defendant filed its memorandum of appearance and its statement of defence joining issues with the plaintiffs on the 6th of November 1998. The appellant, as 4th defendant on the 23rd of April 1999 filed a motion on notice praying the court for the undermentioned reliefs:-

(1) An order striking out the name of the 4th defendant/applicant in this suit;

(2) An order dismissing the plaintiffs’ claim against the 4th defendant in this suit as no cause of action arises against the 4th defendant.

The plaintiffs reacted to the application by filing a counter affidavit on the 25th of May 1999. And the trial court took arguments of the parties. In a considered ruling delivered on the 16th of November 1999 – the learned trial Judge dismissed the application of the 4th defendant.

The appellant being dissatisfied with the ruling of the court filed a notice of appeal with three grounds of appeal. Both parties exchanged briefs in compliance with the rules of the Court of Appeal 1981 as amended. In the appellant’s brief filed on the 6th of November, 2002 two issues were distilled for determination as follows:-