Best Vision Centre Limited & Ors V. Uacn Property Development Company Plc. (2003)

LawGlobal-Hub Lead Judgment Report

SULEIMAN GALADIMA, J.C.A.

This is an appeal against the ruling of Rhodes-Vivour, (J) of the Lagos High Court delivered on the 23rd January, 2001 striking out the suit No. ID/2374/2000 instituted by the plaintiffs on the grounds that the defendant was the agent of a disclosed principal.

The summary of the facts upon which the case of the appellants, who are the plaintiffs, is based is that the appellants as tenants in the building situate at 61 Marina Street and 143/145 Broad Street, Lagos had been making service charge payments to the respondent for the provision of certain essential services to the premises which they occupy. The services include electricity water,cleaning and security. For providing these services to the appellants the respondent charges a commission of 10% of the total amount collected as service charge.

It is the case of the appellants that the respondent has failed or neglected to provide adequate service commensurate to the sum of money paid by them as service charges which has caused severe damage to their business and as a result of which the said appellants decided jointly to provide the services by themselves. This the respondent had opposed. The appellants then claimed as follows:

“1. A declaration that the defendant being the agent of the plaintiffs in the provision of services to the building situate at 143/145 Broad Street, Lagos, the plaintiffs are entitled to an account of all monies collected by the defendant from them and how same has been disbursed.

2. An account of all monies collected by the defendant as service charges in respect of the building aforesaid within the last two years and how same was expended.

3. A declaration that the plaintiff having communicated to the defendant their decision to terminate agency (sic) relationship between them and the defendant for the limited purpose of collecting service charges and providing services for the building are entitled to undertake a collection service charges and provision of services to the said building themselves;

4. An order of perpetual injunction restraining the defendant from continuing to demand and collect service charges from the plaintiffs for the purpose of providing services to the building at No. 61/143/145 Broad Street, Lagos.

5. An order of perpetual injunction restraining the defendant whether by itself, servants, agents, privies or other whomsoever from taking any steps to evict any of the plaintiffs from the building aforesaid without compliance with the due process of law.

6. General damages in the sum of N10,000,000.00 (Ten million naira only).”

After being served with the writ of summons and statement of claim the defendant entered a conditional appearance and proceeded further to file a motion on notice praying for the following reliefs:

An order-
(i) Striking out the First Mortgage (Savings and Loans) Ltd. and Bridgestone Finance Limited sued as 3rd and 5th plaintiffs as they are no longer tenants in premises (the subject-matter of this suit) and they are not competent parties to this action.
(ii) The said plaintiffs have no cause of action against the defendant.
(iii) Striking out the suit in its entirety as the defendant is the agent of a disclosed principal (UNICO

PENSION TRUST LIMITED)
It is noted that before this application could be heard, the  defendant again filed another motion to strike out the names of 1st, 2nd, 4th, 6th, 7th, 8th, 9th, 10th and 13th plaintiffs from the suit as their counsel was not instructed to institute this action. The plaintiffs’ counsel did not file any counter-affidavits to the two applications.

In the ruling delivered on 25/1/2001 the lower court held that the defendant was the agent of a disclosed principal and thus the principal is the proper party as the defendant and accordingly struck out the plaintiffs’ suit.