Dr. S. Ayo Dada & Ors V. Professor Olajide (2009)

LawGlobal-Hub Lead Judgment Report

CHIDI NWAOMA UWA, J.C.A.

This appeal arose from a decision of the High Court of Oyo State delivered by I. S. Yerima, J. on 6th June, 2003.

The Respondent as Plaintiff originally commenced the suit against the 1st and 2nd Appellants as Defendants jointly and severally under the undefended list procedure of the High Court of Oyo State pursuant to the order of Court of 8th November, 2001. At the hearing, the Appellants then Defendants mentioned the 3rd Appellant as their principal, the trial court thereafter ordered that pleadings be filed. The 3rd Appellant was later joined as 3rd Defendant by the Order of Court dated 21st March, 2002 on application by the Respondent.

The Plaintiff’s claim against the Defendants jointly and severally before the lower Court are as follows:

“The Plaintiff claims against the Defendants jointly and severally the sum of N1,792,218.00 (One million, seven hundred and ninety two thousand, two hundred and eighteen Naira) being money paid by the Plaintiff to the Defendants for the lease of 2 (two) plots of land at one Tarmac Estates, Samanda, Ibadan, which consideration has totally failed and which the Defendants have refused to refund despite repeated demand.

PARTICULARS

(i) Money paid for 2(two) Residential Plots N1,631,800.00

(ii) Agency fee = N 81,590.00

(iii) Ground Rent, Survey and Legal fees

for 2 (two) Residential Plots = N 78,828.00

N1,792,218.00

The Plaintiff also claims 21% interest on the said sum of N1,792,218 (One million, seven hundred and ninety-two thousand, two hundred and eighteen Naira) from the 1st day of January, 1997 until judgment and 10% thereafter until the Defendants pay the money.”

The background facts are that the Respondent’s cause of action arose from an initial transaction between him and the 1st and 2nd Appellants as Defendants. By a letter, Exhibit ‘1’, the Appellants offered to lease 2 (two) residential plots of land on an estate called Tarmac Estate at Samanda, Ibadan to the Respondent. In response to Exhibit ‘1’ the Respondent paid the 1st and 2nd Respondents the sum of N1,792,218.00 (One Million, seven hundred and ninety-two thousand, two hundred and eighteen Naira) being the cost of the two (2) plots of land, Agency fees, Ground rent, survey and legal fees as set out in paragraph 5 of the Statement of Claim (page 30 of the records). Thereafter, the 1st and 2nd Appellants issued the Respondent with a receipt, Exhibit ‘2’. After the transaction, the 3rd Appellant then issued the Respondent letters signed by the 1st Appellant, on the letter headed paper of the 2nd Appellant, allocating 2 (two) plots of land to him at the said Tarmac Estate together with survey plans delineating the plots, Exhibits ‘3’ and ‘4’ respectively.

At the conclusion of the transaction and armed with the allocation letter Exhibit ‘3’ and survey plans delineating the two plots, the Respondent could not take possession of the plots and discovered that Tarmac Estate was a sham and that contrary to the representations made by the Appellants, the land purportedly allocated to him belonged to the Federal Government of Nigeria. The Respondent demanded for the refund of his money but the Appellants refused to refund the money which necessitated the Respondent commencing the proceedings at the trial court. The Appellants admitted the transaction in their joint statement of defence before the trial Court but contended that the 1st and 2nd Appellants were agents of the 3rd Appellant and that 1st and 2nd Appellants are only liable to refund the agency fees received, the money for the survey having been expended. There was no Statement of Defence filed on behalf of the 3rd Appellant being put forward as the only party liable to refund the Respondent’s money.