First Bank Of Nigeria Plc V. Atunrase Carpets & Underlays Limited (2011)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

SIDI DAUDA BAGE, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the judgment of Olatoye J. of the High court of Justice, Sagamu, Ogun state in suit No. HCS/120/95 FIRST BANK OF NIGERIA PLC VS ATUNRASE CARPETS & UNDERLAYS LIMITED, delivered on the 27th day of March, 1998, against the defendant, now appellant in this court.

The plaintiff, who is the Respondent herein, had before the trial court per his amended, statement of claim dated the 7th day of December 1995, claim against the defendant as follows:-

(a) The sum of N660, 000:00 and N3, 340, 000:00 as special and general damages respectively for negligence and breach of its Banker customer contractual relationship with the plaintiff.

(b) Particulars of special damage loss of net profit of N20, 000 per-days on its product for 33 days.

The gist of this case is that, the Respondent is a limited liability company engaged in the business of manufactures of carpet underlay at its Head office in Sagamu with branches in various towns in Nigeria. The respondent in the course of its business operations operate a current account for its business at the Sagamu branch of the appellant bank.

On or about the 29th day of May, 1995 the respondent issued a cheque in the sum of N123, 300:00 in favour of one Miss Seliat Busari to pay for raw materials for the respondent’s business which the suppliers had brought to the respondent’s head office factory at Sagamu. The raw materials which had been brought to the respondent were scarce in the country at the material time.

In spite of the fact that the respondent had more than enough funds in its credit at the Sagamu branch of the appellant, the appellant failed to honour the respondent’s cheque. By reason of the dishonouring of the cheque, the respondent’s customers who were waiting at the respondent’s office to collect money for the raw materials refused to sell the raw materials to the respondent.

The respondent accordingly lost the rare opportunity of buying the raw material and was also unable to produce for a period of thirty-three days before the respondent could get another opportunity of buying the scarce raw materials. As a result also the respondent lost some of its customers to its competitors.

By its writ of summons dated 5th September, 1995, the respondent instituted an action claiming against the appellant the following: –

“The sum of N660, 000:00 and N3, 340, 000:00 as special and general damages respectively for negligence and breach of the appellant’s banker customer contractual relationship as well as damages for injury to the respondent’s reputation as a result of the wrongful dishonour of the cheque.”

The parties exchanged pleadings and called witnesses in proof of their respective cases. On the conclusion of the hearing the learned trial judge entered judgment in favour of the respondent as follows: –

(a) N660, 000:00 as special damages

(b) N2, 500, 000:00 as general damages