Chief Victor Edema Vowa V. First Bank of Nigeria Plc (2016) LLJR-CA

LawGlobal-Hub Lead Judgment Report

ABIMBOLA OSARUGUE OBASEKI-ADEJUMO, J.C.A.

This is an appeal against the judgment of O. A. TAIWO J. of Lagos State High Court delivered on 31st August, 2010 wherein Appellant as Claimant at the Lower Court claimed for the following reliefs:

(a) The Sum of N2.5 Million (Two Million and Five Hundred Thousand Naira) Only being actual and anticipated loss attributable to the failure and to neglect of the defendant acting through its Sapele branch in remitting the sum of N80,000.00 (Eighty Thousand Naira) payable to Chartered Bank PLC (now merged to IBTC Chartered Bank Plc) in December, 2001 to purchase shares in the Public offer issued for the then Chattered Bank Plc now STANBIC – IBTC Bank Plc.

(b) Interest calculated at the statutory rate of not less than 10% per annum the date of the Writ until the whole judgment sum is fully paid.

(c) Cost of the action.

Briefly, the facts of the case culminating in this appeal according to the Appellant are that Chartered Bank Plc invited the public to subscribe for its shares by way of public offers. The Appellant paid the sum of N80, 000.00 (Eighty Thousand Naira) only to the Respondent as one

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of the stock brokers /banks/receiving agent named to receive application for subscription of the shares of the said Chartered Bank Plc at the Respondent’s branch in Sapele. The voucher was marked A.

Appellant did not get any indication that his application had been processed and approved to make him a shareholder of Chartered Bank Plc and went to make an inquiry with the Respondent as well as wrote a letter which was referred to at the Lower Court as Exhibit “B” requesting to know his status as a shareholder of the bank.

The Respondent directed the Appellant to direct his inquiry to the Registrar of Chartered Bank Plc which the Appellant did. Exhibit “B”, “C’ and “D” are relevant to the inquiry. When there was no positive response with the Respondent barely denying liability without showing positively how the money that was paid to the Respondent by the Appellant payable to Chartered Bank Plc or its registrar or how the money was remitted, the Appellant initiated an action at the Lower Court. At the close of trial, the Lower Court dismissed the Appellant’s claim with N25,000.00 (Twenty Five Thousand Naira) costs awarded to the Respondent. Naturally

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aggrieved, the Appellant filed a Notice Appeal dated 25th October, 2010 on eight (8) grounds, appealing against the whole decision of the Lower Court.

Subsequently, in compliance with the Rules of Court, Appellant filed a brief dated 2nd August, 2011 and filed 3rd August, 2011 and settled by Ademola Olowoyeye of Ademola Olowoyeye & Co. Four issues were formulated in the brief thus:

(a) Whether having regard to the pleadings and the state of the law, this is a matter in which a principal/agency and third party relationship of such that makes the principal liable for the act of the agent applicable.