E. D. Obialo & Ors V. Amaobi Alfred Ugochukwu (2002)

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ABOYI JOHN IKONGBEH, J.C.A.

The appellants carried on the business of estate surveyors. The respondent carried on the business of business consultants. On 13/07/87 the appellants engaged the services of the respondent for the purpose of securing for them a contract from the old Imo State Government for the rating and valuation of Aba/Obioma Ngwa rating and valuation area. They entered into a written agreement on the same day for the purpose. By the agreement the respondent was to be paid by the appellants30% of the contract fee as consultancy fees. In addition the respondent was to share the balance of 70% equally with the five appellants.

A contract worth N1, 600, 000.00 was later awarded to the appellants and they duly executed it. In course of time the first instilment was paid to them and they worked out 30% of it and paid same to the respondent. Thereafter nothing further was forthcoming from them despite the fact they had received further payments from Government. After fruitlessly pursing them for payment the respondent took out a writ of summons at the Imo State High Court, Owerri, and Claiming against the appellant –

“(a) The sum of N139, 166.66 made up as follows:

(i) N89, 400.00 (Eighty Nine Thousand Four Hundred Naira) representing his 30% consultancy services fees on the sum of N298, 000.00 (Two hundred and Ninety Eight Thousand Naira) had and received by the defendant, for the contract for the property rating of Aba and Obioma Ngwa Local Government Area.

(ii) N48, 766.66 (Forty Eight Thousand Seven Hundred and Sixty Six Naira Sixty Six Kobo) representing his 1/6 share of the sum of N292 600.00 being 70% of the sum of 418, 000.00 paid to the defendants on the said contract in part payment.

(b) Order of Court that the balance of N1, 182, 000.00 (One Million One Hundred and Eighty Two Thousand Naira) or part payment thereof payable by the Imo State Government to the defendants be paid into Court by the defendants on receipt of same pending the payment of the plaintiffs said consultancy of 30% and 1/6 share in the 70%.”

Pleadings were exchanged and the matter went to trial where at oral and documentary evidence was placed before the Court. In his judgment delivered or 24/03/97 the learned trial Judge, M. O. Maranzu, J., found in favour of the respondent. He however did not award him everything that he asked for.

Aggrieved by that part of the judgment that found them liable on the agreement to the respondent the appellants have appealed to this Court. The respondent for his part was dissatisfied with that part of the judgment in which the learned trial Judge declined award him some of the sums he had claim. He has consequently cross-appealed after seeking and obtaining leave of this Court.

Counsel on behalf of the appellants has submitted the following issue for determination by us:

“(a) Whether the Court below was right in holding that the agreement Exhibit .A, between the respondent and the appellants for canvassing and influencing the award of contract by the Ministry of Local Government for Rating and Valuation of Aba/Obioma Ngwa Local Government Areas is not a contract against Public policy and therefore enforceable.

(b) Whether the Court below was right in holding that the award of 5 zones our of 13 zones of Aba/Obioma Ngwa Property Valuation to the appellants by the Imo, State Government on 06/08/87 per Exhibit ‘F’ was as a result of the canvassing activities of the respondent after the execution of the agreement Exhibit ‘A’ on 13/07/97

(c) Whether the award of N5, 000.00 costs and 21 percent interest far above the rate of interest allowed by law is not excessive, arbitrary and unreasonable in the circumstance.

In respect of the main appeal the following two issues were formulated on behalf of there respondent: