Amana Suits Hotels Ltd. V. Peoples Democratic Party (2006)

LawGlobal-Hub Lead Judgment Report

ABDU ABOKI, J.C.A.

This is an appeal against the judgment of the High Court of the F.C.T. Abuja sitting at Wuse Zone 5 presided over by Justice Hussein Mukhtar delivered on 11th day of February 2005 in Suit No. FCT/HC/CV/653/03.

The present Appellant, who was the plaintiff at the trial court, instituted the action against the respondent, who was the Defendant claiming.

“1. The sum of N1,831,500 being the total cost of 60 rooms reserved by the plaintiff for the Defendant for 4 nights at the request/instruction of the defendant.

2. 10% interest on the judgment sum from the date of judgment till the sum is liquidated.”

The brief facts of this case are that the respondent by a letter dated 13/12/2002 (Exhibit 1) requested the Appellant to reserve all rooms in its Hotel from the 2nd to 6th January 2003. The letter also requested the Appellant to forward the available rooms and their cost implication.

The Appellant wrote to confirm the availability of sixty (60) rooms, their location and gave their cost estimate at N1,831,500. The Appellant requested that payment be made for the rooms immediately to enable it prepare for the respondents guests.

Two officials of the Respondent were said to have inspected the rooms on the 31st December 2002 and 1st January 2003. The Respondent did not send any of its guests to occupy the rooms from the 2nd to 6th January 2003.

The Appellant sent its bill for the nights that the rooms were reserved to the Respondents for payment, but the Respondent rejected the bill and refused to pay. The Respondent claimed that during the inspection of the room it found them unsuitable and that its decision to outrightly decline to take the rooms was expressed in the presence of the Appellant’s Sales Manager.

The Appellant on its part said that there was no official letter of cancellation of reservation or any official correspondence sent to it by the Respondent.

The Suit first came under the undefended list and due to the failure of the Defendant to file a notice of intention to defend it, supported by an affidavit, judgment was entered in favour of the plaintiff on 22/9/2003.

Upon an application filed by the Defendant which was argued by parties on 27/10/2003 praying the trial court to set aside the default judgment entered on 22/9/2003. The trial court delivered its ruling on 8/12/2003 setting aside the judgment and the suit was subsequently transferred to the general cause list and pleadings were filed and exchanged by the parties. At the hearing each party called only a witness and 4 Exhibits marked as A,1, 2 and 3 were tendered in evidence.

After hearing the case of both sides the trial court gave it Judgment on 18/2/2005 dismissing the claim of the Plaintiff/Appellant holding that there was never created a binding contractual relationship between the parties in the Suit.

Dissatisfied with the judgment of the trial court, the Appellant appealed to this court. The parties duly filed, served and exchanged their respective briefs of argument. The Appellant in its brief dated 14/11/2005 and filed the same day presented two issues for determination.

These issues arc as follows: