SPDC (Nig) V. Ekwems & Ors (2022)

LAWGLOBAL HUB Lead Judgment Report – SUPREME COURT

JOHN INYANG OKORO, J.S.C. (Delivering the Lead Judgment)

This is an appeal against the judgment of the Court of Appeal, Port Harcourt Division, in Appeal No. CA/PH/162/2003 delivered on 30th day of January, 2008 in which the Court dismissed the appeal of this Appellant and allowed the cross-appeal of the Respondents in the sum of N146,450,000.00 (One Hundred and Forty-Six Million, Four Hundred and Fifty Thousand Naira) as special damages, thus varied the award of N36,000,000.00 (Thirty Six Million Naira) granted the Respondents by the trial Court as damages.

The action centers on compensation payable by the Appellant to the Respondents for compulsory acquisition of about 65 hectares of the Respondents’ land known as Azhi Egberi for the establishment of an Agricultural Project, viz:

Seed Multiplication Farm, which said project, permanently defaced the land.

​The Respondents, through their lawful attorney (PW1) took out a writ of summons against the Appellant claiming in their amended statement of claim filed on 17/2/1999 the sum of N150,000,000.00 as damages. The sum of N146,450,000.00 was claimed as special damages whereas the sum of N3,550,000.00 was claimed as general damages.

It is the case of the Respondents as plaintiffs that sometime in 1990, the Appellant through its representatives requested from elders of the Respondents’ community 35 hectares of land for development of an agricultural project to wit: seed planting materials and Demonstration/multiplication Farm. The elders of the Edagberi/Betterland Community considered the request and initially donated 15 hectares of land to the Appellant and subsequently a total of 50 hectares for its said project.

​Howbeit, the Respondents allowed the Appellant to clear and use the land, at which time it was a thick virgin forest, on the understanding reached by both parties that compensation would be paid for the use of the land, which will revert to the owners at the end of the project, as well as other incentives such as community development, education and employment of the youth of the community in the Appellant’s main business of oil exploration and in the farm. They were rather surprised when in a letter dated 19/3/1991 the Appellant stated that it will underwrite all claims for damages and compensation arising from its use of the land.

Being averse to the Appellant’s sudden disposition not to pay compensation, the Respondents engaged the services of a chartered surveyor and valuer (PW3) to value the land acquired by the Appellant and advice them on compensation payable thereon. It was this chattered surveyor and valuer whose report upon completion of the survey revealed that the parcel of land used for the seed multiplication farm was a total of 65 hectares instead of the 35 hectares initially requested for. He therefore put the sum for compensation at N146,450,000.00.

​On the part of the Appellant, it was contended that the total area of land donated by the Respondents was 42.3522 hectares for the Agricultural Project called Adibawa Edagberi/Betterland Shell Petroleum Development Company seed Multiplication Farm.

It denied agreeing to pay compensation for the use of the land as the result of the farm operation which are replicated in other areas of its operations throughout Nigeria are of direct benefit to the members of the donor communities and the projects are in fact community assistance programmes. It stated that the farm project has been of substantial benefit to the Edagberi/Betterland Community as it has provided jobs and farm seedlings for members of the community among other benefits. For that reason, it refused to pay compensation.

At the hearing of the case, the Respondents called three witnesses and tendered Exhibits while the Appellant called two witnesses. At the close of hearing, the learned trial Judge found in favour of the Respondents and awarded the sum of N36,000,000.00 as damages against the Appellant for trespass. The Appellant appealed the judgment whiles the Respondents cross-appealed. The Court of Appeal in its judgment delivered on 30th January, 2008 dismissed the appeal and allowed the cross-appeal on the ground that the sum of N146,450,000.00 proved as special damages was not contradicted, hence this further and final appeal to this Court.

At the hearing of the appeal, Chief Richard Akinjide, SAN in the Appellant’s Amended Brief of Argument filed on 22/1/2016 but deemed properly filed on 21/2/2022 distilled 4 issues for determination of the appeal from 9 grounds of appeal as follows:-

“ISSUE ONE
Whether the Court of Appeal was right in dismissing the Defendant/Appellant’s appeal and allowing the Plaintiffs/Respondents’ Cross-Appeal thereby awarding the sum of N146,450,000.00 (One Hundred and Forty Six Million Four Hundred and Fifty Thousand Naira) as claimed? (Grounds 1 and 3 of the original Notice of Appeal and Grounds 6, 7, 8, and 9 of the Additional Notice of Appeal)

ISSUE TWO
Whether the learned Justices of the Court of Appeal were right when they held that the judgment of the High Court which was delivered more than two years and nine months after close of evidence and over five months after close of final address by counsel did not affect the Court’s judgment and therefore occasioned a miscarriage of justice and therefore a nullity? (Ground 2 of the original Notice of Appeal)