Chevron Nigeria Limited V. Titan Energy Limited (2013)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

UCHECHUKWU ONYEMENAM, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the Judgment of the Rivers State High Court holden at Port Harcourt before Honourable Justice B. A. Georgewill delivered on 28th July, 2008 in Suit No. PHC/1843/2006.

By writ of summons filed on 21st day of December, 2006 and its Amended Statement of Claim dated 28th April, 2008 the Respondent as Claimant claimed the following reliefs against the Appellant as Defendant,

“(i) A declaration that the Claimant is entitled to be paid for work authorizations duly completed under Contract No. FAC-2005-40021790 made between the claimant and SNCLAVALIN GDS Incorporated of USA on the one part and the Defendant on the other part.

(ii) A declaration that the failure and/or refusal by the Defendant to pay for the completed work under the contract after taking benefit thereunder is a breach of the contract between the claimant and the Defendant.

(iii) An order directing the Defendant to pay to the Claimant the sum of USD 800,670.86 (Eight Thousand, Six Hundred and Seventy Dollars, Eighty-Six Cents) and also the sum of N48,407,436,56 (Forty-Eighty Million, Four Hundred and Seven Thousand, Four Hundred and Thirty-Six Naira, Fifty- Six Kobo) being and representing work done by the Claimant under Contract No. FAC-2005-40021790.

(iv) N7,000,000,000.00 (Seven billion Naira) being and representing accumulated interest charges with effect from November, 2004 till date.

(v) N500,000.000 (Five Hundred Million Naira) damages for breach of contract.

(vi) N500,000,000 (Five Hundred Million Naira) general damages

(vii)10% on the judgment sum until same is fully liquidated.

A summary of the Respondent’s case as contained in its Amended Statement of Claim and the evidence given by PW1 is as follows:

The Appellant on or about November 2004, entered into contract No. FAC-2005-40021790 for Engineering and Project Management Services with the Respondent and One SNC-LAVALIN GDS Incorporated of USA. The Respondent executed and completed several specific work Orders under the contract and the total monetary value for the work done under the contract are USD800,670.86 (Eight Hundred Thousand, Six Hundred and Seventy Dollars and Eighty Six Cents) and N48,407,436.56 (Forty-Eighty Million, Four Hundred and Seven Thousand, Four Hundred and Thirty-Six Naira, Fifty-Six Kobo).

The Respondent claimed that it sourced and obtained loans from its sister companies at 10% interest per month to enable it execute the contract with the hope that the Appellant will pay the Respondent within 75 days of submission of invoices as contractually agreed between the parties. The Appellant terminated the contract but did not pay the Respondent for work done under the contract and that failure of the Appellant to pay the Respondent within 75 days after the submission of invoices was a clear breach of the contract between the parties.

The Respondent claimed that because of the failure of the Appellant to pay the invoices it suffered serious losses, as it affected its operations and it was unable to pay its workers and the loans taken accrued enormous interest charges. The Respondent therefore claimed for declaratory reliefs, special and general damages for breach of contract.