First Bank Of Nigeria Plc V. Sunday Y. Olaleye (2012)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

PHILOMENA MBUA EKPE, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the decision of the High Court Jos, plateau State delivered on the 17th day of December, 1998, wherein the lower Court ordered the Appellant to pay the sum of N250,000.00 (Two hundred and fifty thousand naira) as general damages for the negligence of the 1st Appellant in remitting the Respondent’s application for shares in the 2nd Defendant’s Comp any and also to pay the cost of this action assessed at N5,000.00 (Five thousand naira) only.

Dissatisfied with the judgment of the Lower Court, the Appellant filed a notice of appeal on the 21st day of December, 1998 containing three grounds of appeal.

The facts of the case are as follows:

The Appellant acting as an agent to Daily Times Nigeria Plc, her disclosed principal received the Respondent’s subscription for 500 shares of Daily Times Nigeria Plc worth N260.00k (Two hundred and sixty naira) and quickly transmitted same to Daily Times Nigeria Plc. When the Respondent could not receive his share certificate he inquired from the Appellant who explained to him and presented documents to show that his money had been transmitted. The Respondent was dissatisfied with the explanation and thus instituted this action.

The Appellants defences were:

(a) That there was no contractual relationship between the Appellant and the Respondent.

(b) That the 2nd Defendant was his Principal and as such was vicariously liable to the deed of the Appellant.

The Respondent commenced this suit on the 7th day of May, 1996 and claimed as follows:

(a) From the defendants jointly and severally

(i) An order for the specific performance of the contract by purchasing the 500 shares subscribed and paid for by the plaintiff.

(ii) The sum of N150,000.00 being general damages for breach of contract.

(b) From the 1st defendant the sum of N300,000 being general damages for deceit, fraudulent misrepresentation, negligent mis-statement and conversion.

(c) Costs of this action.