Chevron Nigeria Limted V. Theophilus Nwuche & Ors (2014)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

PETER OLABISI IGE, J.C.A. (Delivering the Leading Judgment)

This is an Appeal against the Ruling of Imo State High Court sitting at OGUTA JUDICIAL DIVISION contained in the Ruling of Honourable Justice U. D. OGWURUIKE delivered on 22nd day of July, 2003.

The Respondents had approached the said Court on 6th day of June, 2000, for the issuance of a Writ of Summons against the Appellant (at the Court below) wherein the Respondents claimed against the Appellant the following reliefs to wit:

“The Plaintiff claims against the defendant as follows:

(a) A Declaration that the token sum of N2,605.800.00 (Two Million Six Hundred and Five Thousand Eight Hundred Naira) paid by the defendant to the plaintiffs in 1996 is compensation or the economic crops and trees belong to the plaintiffs which were destroyed by the defendant in the plaintiff’s land which situate and lying at Umukene Ohaji in the Ohaji/Egbema Local Government Area of Imo State, measuring approximately 50 (fifty) hectares and not compensation or fair and adequate compensation for the loss of use of the said land within the spirit and intendment of the oil pipe lines enactment.

(b) The sum of Two Million Naira (N2,000.000.00) per hectare for a period of 20 years from 1996 to 2016 as compensation for the loss of the use of the said land measuring approximately 50 hectares in area which situate and lying at Umukene Ohaji in the Ohaji/Egbema Local Government Area upon which Chevron Nigeria Limited is carrying on exploitation and/or exploration for mineral oil.

(c) An Order of court in the alternative, that an independent registered Estate Valuer acceptable by both parties be retained to put a proper, fair and adequate capital value for the 20 years period for the loss of use of the said land from 1996 to 2016.

(d) An Order of this Honourable Court that the defendant pay a fair adequate compensation as may be assessed by the said Estate Valuer for the 20 years period from 1996 to 2016.”

Similar reliefs were replicated in paragraph 15 (a) (b) (c) (d) of the Respondents Statement of Claim (pages 6-7 of the record) filed on 6th day of June, 2000. The Respondent/Appellant filed her Statement of Defence in the matter on 6th day of December, 2000 wherein she pleaded in paragraphs 14 and 15 thereof thus:

“14. The Defendant shall further contend at the trial of this action that the Defendant is not entitled to pay compensation twice over the said land.

15. The Defendant shall further contend at the trial of this action that this honourable court lacks the jurisdiction to entertain this suit as it is a matter pertaining to oilfield and mining.”

The Appellant followed this up by filing a Notice of Preliminary Objection dated 5th day of November, 2001 on 6th day of November, 2001. It reads:

“NOTICE OF PRELIMINARY OBJECTION

TAKE NOTICE that Counsel on behalf of the Defendant/Applicant shall on the 22nd day of January, 2002 raise the following preliminary objection to this suit. The Plaintiffs’ action before this Honourable Court is incompetent as this Honourable Court lacks jurisdiction to entertain the matter by virtue of section 230(1)(0) of the Constitution (Suspension and Modification) Decree No. 107 of 1993 and S.7(1)(p) of the Federal High Court (Amendment) Decree No. 60 of 1991)

GROUNDS OF OBJECTION