Mobil Producing Nig. Unltd V. Nsesco Nigeria Limited (2010)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

JA’AFARU MIKA’ILU, J.C.A. (Delivering the Leading Judgment)

In this case the Respondent/Plaintiff sued the appellant in the High Court of Akwa Ibom State, Eket Judicial Division in Suit No HEK/26/2004 in which Judgment was delivered on the 22nd day of November, 2004. The respondent as plaintiff had applied to the trial court for summary judgment on declaratory reliefs which the trial court granted. Being dissatisfied with the decision of the trial court, the defendant/appellant appealed to this court as per Notice of Appeal dated and filed on the 23rd January, 2006 upon the order of this court dated 16th January, 2006 extending time for the appellant within which to file the said notice of Appeal. Thus the Respondent, as plaintiff in the lower court filed the action against the appellant claiming for the following:-

(a) A declaration that the Defendant has breached the provision of Janitorial Service Agreement No.2450279 between the Plaintiff and the defendant dated January 1, 2003.

(b) A declaration that article 15.2 dealing with dispute resolution is unlawful, null and avoid.

(c) The sum of 4,473,643.96 being the value of the contract for the period of January, 1 to December 31, 2004.

(d) N2,000.000.00 being general damages.

Thus the facts of this matter as averred to in the statement of claim at the lower court are summarized as follows:-

(a) Sometime in 2002 the plaintiff/Respondent bided for a job upon which the defendant/appellant contracted the plaintiff and entered into an agreement No.2450279.

(b) The plaintiff alleges that by exhibit B annexed to the said agreement, it was entitled to a monthly payment of N373,270.33 fixed for two years commencing from January 1, 2003

(c) That by Article 2.1 of the agreement the contract was to last for one year subject to extension by 30 days notice.

(d) The plaintiff averred that despite his notice for extension the Defendant/Appellant went ahead to appoint another contractor thereby breaching the agreement executed with the plaintiff.

Thus upon the alleged breach the plaintiff brought this action claiming declaration reliefs and compensation for loss of business profit and also filed a motion on notice dated 13th July, 2004 praying the trial court to enter judgment in favour of the Plaintiff as per the writ of summons in default of appearance and defence by the defendant.

The trial court heard the application in the absence of the Defendant and granted the claims summarily.

The appellant has framed the following issues for determination:-