Emespo J. Continental Limited & Anor V. Automotor France S.A (2016)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

YARGATA BYENCHIT NIMPAR, J.C.A. (Delivering the Leading Judgment)

The Lagos State High Court in a judgment delivered on the 9th February, 2009 entered judgment for the respondent in a claim brought under the Summary judgment procedure thus:

“Final judgment is entered in favour of the claimant in the sum of ?210,516.00 or its Naira equivalent at the prevailing exchange rate as at today, the date judgment is delivered being the outstanding debt owed by the Defendant to the claimant.

The Defendant shall pay interest on the judgment debt at the prevailing rate from July, 2001 till date of judgment and thereafter at 15% until the final liquidation of the judgment debt.”

Dissatisfied with the judgment, the Appellants (defendants at lower Court) filed an Amended Notice of Appeal dated 6th March 2009 and filed on 24th July, 2009 pursuant to order of Court made on the 7th of July, 2014. The Amended Notice of Appeal set out 3 grounds of Appeal and sought for the following reliefs:

1. An order of this Honourable Court allowing the Appeal.
2. An order striking out the case before the lower Court and declaring the whole proceeding at

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the lower Court including the judgment complained of a nullity ab initio.

3. In the Alternative An Order of the Court of Appeal setting aside, dissolving, vacating and reversing accordingly the Ruling/Judgment of the High Court of Lagos State, Badagry Judicial Division, wherein the Honourable Justice E. A. Adebajo gave judgment in favour of the Respondent upon Respondent?s summary Judgment application in suit No. LD/1122/06 against the Appellants on the 9th day of February, 2009.

Brief facts of this appeal are simply that the Respondent, a foreign based company had a business relationship with the Appellants wherein motor spare parts were supplied to the Appellants and to be paid after sales. As time went on, the Appellants defaulted in payments and a Co-operation Agreement was entered into for the outstanding payment which was briefly complied with by the Appellants. The Respondent then initiated an action by way of Summary Judgment procedure. The Appellants filed processes to show that they have a defence to the claim and therefore they have trial issues or defence on the merit including a counterclaim contending that judgment should not be

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entered in favour of the Respondent. The matter was considered, and the lower Court found that there was no defence disclosed, consequently the Court discountenanced the affidavit of the Appellants and went ahead to enter judgment in favour of the Respondent, thus this appeal.

The Appellants though served did not appear in Court on the day of hearing. The Respondent urged the Court to deem the Appellants’ brief as argued in accordance with Order 11 Rule 1 and 5 (2) of the High Court of Lagos State (Civil Procedure) Rules 2004.

The Appellant?s brief of arguments settled by Sam Eneonwuta is dated the 9th September, 2009 filed same day but deemed on the 25/3/14. It distilled 5 issues as follows:

(i) Whether a foreign company in violation of Chapter 3 of the Companies and Allied Matters Act 2004 has the right of action in Nigeria Court?

(ii) Whether the trial Judge has the jurisdiction to deliver the summary judgment complained of in this Appeal?