Mr. Victor Eka V. Mr. Caleb Adetunji Bodunrin Kuju (2013)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

CHINWE EUGENIA IYIZOBA, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the judgment of Obadina J. of the High Court of Lagos State in suit no. ID/2146/99 delivered on the 24th day of March 2004 granting in part the reliefs claimed by the plaintiff/Respondent.

The Respondent who was the plaintiff in the court below owns a large piece or parcel of land at Block N12 Ogudu G.R.A. in Kosofe Local Government Area of Lagos State covered by Certificate of Occupancy dated the 7th day of February 1979 and registered as No.13 page 13 Volume 1800 of the Register of Deeds at the Lands Registry Lagos. The Appellant who owns the adjacent plot met the Respondent in 1988 after he had written several letters to him offering to buy the land but the Respondent refused to sell. The Appellant then sought the permission of the Respondent to park his vehicles on the land which permission the Respondent granted and the Appellant then erected a fence to secure his vehicles.

In 1998, the Appellant again approached the Respondent requesting to buy the land. The parties discussed and reached an agreement that the land will be sold to the Appellant at N3.1 million, On verification of the title of the Respondent, the Appellant will pay N2.1 million and the balance of N1 million before 31st December 1998. The Respondent then told the Appellant to put his offer in writing. The Appellant’s offer is dated the 19th of September 1998 (Exhibit P7). The Respondent wrote Exhibit D1 accepting the offer but captioned the letter “Confirmation of offer”.

The Respondent having confirmed or accepted the offer, the Appellant after verification of the Respondent’s title, wrote a cheque of NGN2,100,000.00 and a cover letter (Exhibits D6 and D7) but the Respondent neither replied the letter nor cashed the Appellant’s cheque. By a letter dated the 1st of October 1998, (Exhibit D2), the Respondent wrote to the Appellant to pay the market value of the land which he now put at N4.5million.

By a letter dated the 18th of November 1998, the Respondent wrote to the Appellant saying he was no longer interested in selling the land because he wants to use it himself. Upon discovery that the Appellant was developing the land, the Respondent served notices on the Appellant to vacate the land and then instituted an action at the High court of Lagos State claiming as follows:

1. A declaration of statutory Right of occupancy parcel to all that piece or of land situate, lying and being at ‘Block W12 Ogudu G.R.A. in Kosofe Local Government Area of Lagos State dated the 7th day of February, 1979 and registered as No.13 at page 13 in volume 1800 of the Register of Deed kept at the lands Registry Lagos.
2. Perpetual Injunction restraining the Appellant by himself, his servant, agents, privies and otherwise however from continuing to trespass on the said piece of land.
3. Damages in the sum of N500,000 (Five Hundred Thousand Naira) for trespass committed by the Defendant on the said land.

In his amended statement of defence dated 16th day of April, 2003, the defendant/Appellant denied the averments in the plaintiff/Respondent’s Amended Statement of Claim. He asserted that the Respondent agreed to sell the land to him by accepting his letter of offer dated 19th September, 1998. He duly paid the 1st instalment of N2.1 million as agreed. The Appellant contended that the Plaintiff/Respondent cannot renege on the contract after acceptance and after payment of the consideration had been effected as agreed.

During the hearing, the Plaintiff/Respondent gave evidence for himself and called no other witness while the Defendant/Appellant also gave evidence for himself and called no other witness. The parties filed written addresses. On the 25th day of February, 2004, the court gave judgment and granted the Respondent’s relief 1 in the amended statement of claim as follows:-

The Plaintiff is entitled to the Statutory Right of Occupancy of all that large piece or parcel of land being at Block 12 Ogudu GRA. In the Kosofe Local Government Area of Lagos State and covered by Certificate of occupancy dated 7th day of February, 1979 and registered as No.13 at page 13 in Volume 1800 of the Register of deed kept at the Land Registry Lagos.

The Court dismissed Reliefs 2 and 3 in the Amended Statement of Claim and awarded the Respondent cost of N10, 000.00 (Ten Thousand Naira), Dissatisfied with the judgment, the Defendant/Appellant filed a Notice of Appeal dated 17th day of May, 2004 with three grounds of appeal. As is the practice in this Court, the parties filed and exchanged briefs of argument. Chief Adedeji Adekoya who settled the Appellant’s brief distilled four issues from the grounds of appeal as follows:

1. Whether the learned trial judge erred in law in holding that there was no valuable consideration after she found that there was an offer and acceptance by both parties. This issue is related to Grounds 1, 2 and 3 of the Notice of Appeal.
2. Whether a vendor in a valid contract of sale of the land can unilaterally repudiate the contract after the purchaser has fully complied with the agreed terms of the contract (This is distilled from ground 1 of the Notice of Appeal),
3. Whether the Plaintiff can still regain possession of the land by due process of law as advised or suggested by the trial judge (This stems out from grounds of the Notice of Appeal).
4. Whether the Plaintiff/Respondent’s action is not statute-barred in accordance with Section 12 Limitation Laws of Lagos State and by doctrine of laches, acquiescence and standing-by and also by the contract of sale agreed to by the parties. (This is related to ground 4 of Notice of Appeal).

Ayodele Akintunde Esq. who settled the Respondent’s brief on his part formulated three issues for determination as follows:

1. Whether the learned trial judge rightly held that there was no consideration which in turn meant that there was no valid contract capable of being enforced between the Appellant and the Respondent.
2. Whether the learned trial judge rightly held that the Appellant was a licensee and the Respondent could only regain possession of the land by due process of law.
3. Whether the learned trial judge rightly held that the Respondent’s action is not statute barred in accordance with Section 12 of the Limitation laws of Lagos State and rightly discountenanced the purported defences of laches, acquiescence and standing by.

The Appellant’s issues one & two are inter-related and they were argued together. I shall thus refer to both as Appellant’s issue one. The Appellant’s issues one and four are identical with the Respondent’s issues one and three. The Respondent’s issues are more succinct and to the point. I shall therefore adopt the Respondent’s issues in the determination of the appeal.

ISSUE ONE:

Whether the learned trial judge rightly held that there was no consideration which in turn meant that there was no valid contract capable of being enforced between the Appellant and the Respondent.