Mr. Paul Ezenwa Nwokolo v. Prosper Funds Limited (2023)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

OBANDE FESTUS OGBUINYA, JCA (Delivering the leading judgment)

This appeal interrogates the correctness of the decision of the High Court of Lagos State (hereinafter addressed as the lower court), coram judice: S. A. Onigbanjo, J., in suit No. LD/ADR/571/2016, delivered on 15th January, 2019. Before the lower court, the appellant and the respondents were the claimants and the defendants respectively.

The facts of the case, which transformed into the appeal, are amenable to brevity and simplicity. Sometime in 2005, the appellant, an ex-banker, invested certain sum of money with the first respondent for a maturity period of 90 days at a given interest rate.

The second respondent, the managing director of the first respondent, was a professional colleague (co-staff) in the defunct Equity Bank of Nigeria, which metamorphosed into Access Bank Plc, who assured and guaranteed the appellant of the safety and repayment of his investment. The investment sum was, on the agreement of the parties, rolled over severally, on higher sums of money, and on agreed conditions. The appellant was issued with an investment note number by the first respondent.

In 2013, the appellant requested for N6,000,000.00 out of the investment sum but was given N1,400,000.00 owing to economic hardship and down turn in the business of the first respondent. The first respondent failed to pay the appellant the balance of his investment sum despite repeated demands. Sequel to this, the appellant beseeched the lower court, via a writ of summons filed on 18th June, 2016, and tabled against the respondents, jointly and severally, the following reliefs:

(i) Whereof the claimant claims against the defendants jointly and severally the sum of N21,195,978.85 (twenty-one million, one hundred and ninety-five thousand, nine hundred and seventy-eight naira, eighty-five kobo) as at 30/09/16 being the outstanding investment of the claimant in the 1st defendant at the instance and assurance with firm promises of the 2nd defendant that it is safe and will be repaid at maturity. The claimant also claim (sic) interest at the agreed rate of 25% per annum from the 30th September, 2016 until the entire debt is paid.

(ii) The claimant also claims the sum of N3,500,000.00 as damages for breach of contract that the investment will be repaid to the claimant or his order at maturity on 20th April, 2013 but failed and the claimant has to borrow money to finance his daughters school admission in Canada and the burial activities of his elder brother.

(iii) The claimant also claims cost of this suit including solicitors fees paid for the prosecution of this suit.

In reaction, the respondents, upon service of the processes on them, joined issue with the appellant and denied liability by filing a joint statement of defence. They also filed a preliminary objection which was struck out by the lower court, presided over by Femi-Adeniyi, J., in ruling lying at pages 161- 164 of the record.

The appellant filed a motion for summary judgment which was heard by the lower court. The lower court entered judgment for the appellant in sum of N11,369,863.00 The lower court granted the respondent leave to defend the other heads of claim. In proof of the remnant reliefs, the appellant testified in person as CW1 and tendered tons of documentary evidence exhibits A.V. The lower court foreclosed the respondents defence to the suit and they filed no written address. In a consideredjudgment, delivered on 15th January, 2019, found at pages 205-209 of the record, the lower court granted partly the balance of the appellant’s claims against the first respondent only.

The appellant was dissatisfied with certain parts/positions of the judgment. Hence, on 3rd April, 2019, the appellant launched a 6 – ground notice of cross-appeal which is copied at pages 247-253 of the record. Subsequently, the appellant, with the leave of this court, filed an amended notice of appeal on 23rd June, 2022 but deemed properly filed 26th September, 2022, hosting six grounds, wherein he prayed this court for:

i. Anorder allowing the appeal and setting aside parts of the judgment of the trial court complaint of:

ii. An order entering judgment against the 1st and 2nd respondents jointly and severally in favour of the appellant in all the appellants claims before the trial court as follows:

a. The 1st and 2nd respondents shall jointly and severally forthwith pay the appellant the sum of N1,633,000 (one million, six hundred and thirty-three (sic) thousand naira) being outstanding payment shortfall of the appellants investment with the 1st respondent upon maturity on 20/4/13.