ACB Limited V. Sabastine Ufondu (1997)

LawGlobal-Hub Lead Judgment Report

OGUNTADE, J.C.A.

The respondent was the plaintiff before the Maiduguri High Court in suit No. M/9/86 and the appellant the defendant. The appellant (hereinafter referred to as the defendant) is a banking organization. It employed the plaintiff. The plaintiff later rose to the status of a branch manager of the defendant’s Maiduguri branch. While he was a branch manager, the plaintiff granted loans and advances to some customers. The loans and advances were unauthorized in the sense that the plaintiff had not obtained the prior approval of the defendant before granting them. The issue that loomed large at the trial was whether the circumstances in which the plaintiff granted these unauthorized loans qualified to be classified as a flagrant disregard of the defendant’s instructions to its staff on lending as to amount to misconduct justifying the dismissal of plaintiff from the defendant’s employment. The plaintiff admitted that he granted the unauthorized loans and advances but contended that the circular from the defendant to its staff not to grant such loans and advances only came into existence after he had granted the loans and advances. The defendant suspended the plaintiff from its employment on 30/10/80; and on 1st June, 1981, it dismissed the plaintiff from its employment. In these circumstances, the plaintiff on 17 January, 1986, in reaction against his dismissal commenced proceedings against defendant claiming the following reliefs:

“(a) A declaration that the plaintiffs’ dismissal by the defendant was wrongful and unlawful, unjustifiable, null and void and of no legal effect.

(b) An order to the defendant to re-instate the plaintiff in his job.

(c) An order to the defendant to pay to the plaintiff all his arrears of salary and entitlements including allowances from the date of his purported dismissal to wit, 30/5/81 to the day of judgment and/or plaintiff’s re-instatement.

(d) General damages of N100,000.00 (one hundred thousand naira) for wrongful dismissal.

(e) An order to the defendant to pay to the plaintiff cash for the 1978/79 and 1979/80 annual leave(s) that the plaintiff did not enjoy through no fault of his own.

(f) An order to the defendant to pay to the plaintiff the balance of his salary being 50% of the plaintiff’s salary from the date of his suspension to wit 30/10/80 to the date of plaintiffs purported dismissal namely 30/5/81 together with all entitlements and allowances.

(g) The costs of this action.”

(See plaintiff’s Statement of Claim dated 9/4/86).

The parties filed and exchanged pleadings. The suit was tried by GARNDAWA J. On 4/3/92 the trial Judge delivered his judgment wherein he made the following orders:-

“1. That the plaintiff’s suspension from duty or from the employment of the defendant from the 30th October, 1980 leading to his eventual dismissal from the service of the defendant on the 30th May, 1981 are hereby declared wrongful, unlawful, null and void and of no effect whatsoever.

2. That the plaintiff is not entitled to a re- instatement to his former post from 30th October, 1980.
3. That the plaintiff is entitled to be paid all his emoluments (i.e his arrears of salary of N10,318.00 P.A. and other allowances) as from 30th May, 1981 up to the date of judgment in this suit.
4. That the plaintiff’s appointment shall be deemed to be terminated from the service of the defendant with effect from the 5th March, 1992.
5. That the defendant shall pay to the plaintiff the balance of his salary being 50% of the plaintiff’s salary from the date of his suspension to wit; 30/10/80 to the date of plaintiff’s purported dismissal namely 30/5/81 together with all entitlements and allowances.
6. That the defendant shall pay to the plaintiff the cost of filing this suit assessed at N500.00.”

The defendant was dissatisfied with the judgment of the lower court. On 4/3/96, it filed an amended Notice of Appeal against the judgment wherein it raised six grounds of appeal. It is unnecessary that I reproduce the said grounds of appeal. In the appellant’s brief filed, the issues for determination in the appeal formulated out of the said grounds of appeal read thus:

“1. Whether in the circumstances of this case the learned trial Judge was right in holding the plaintiff/respondent’s dismissal from the employment of the defendant/appellant wrongful, unlawful, null and void and of no effect whatsoever.