Mrs. Adekemi Sonuga & Anor V. The Branch Manager & Anor (2011)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

R.C. AGBO, J.C.A (Delivering the Leading Judgment)

The appellants are the administrators of the estate of late Adedoyin A. Sonuga. Late Sonuga had title to property situate at No.8, Ogunfowokan Street, Okota, Lagos. He took a loan from the respondents to develop the said No.8, Ogunfowokan Street, Okota, Lagos. The first appellant was late Sonuga’s wife.

The late Sonuga entered into a legal mortgage of the property with the respondents. The said property was developed and the loan repaid.

The legal mortgage was discharged. But the documents of title of the property were not released to late Mr. Sonuga until he died. The appellants on obtaining letters of administration of the estate of the late Sonuga asked the respondents to release to them the documents of title of the said property. The respondents refused claiming that the fate Sonuga was a guarantor of a debtor company owing the respondents and had deposited the documents of title as security for the contract of guaranty. The appellants felt aggrieved and approached the High Court of Lagos State claiming as follows:-

“(1) declaration(s) and/or orders directing the defendants, that following the discharge from overdraft loan facilities obtained by Late Adedoyin A. Sonuga from the defendants and secured by legal mortgage, and deed of release of said legal mortgage dated 23rd August, 1996 and registered at the registry of title deed Lagos state on 29/01/1999, to immediately release to the claimants the original title documents covering the property mortgaged thereof to wit No. 8, Ogunfowokan Street, Okoto-Isolo, Lagos.

And the determination of the following questions:

(i) Whether having regard to the fact that the defendants never informed the administrations of the Estate of the Late Adedoyin A. Sonuga (which estate include No. 8, Ogunfowokan street, Okota-Isolo, Lagos) aforesaid administrations can be bound by the transaction referred to in the first defendants letter of 22/6/1999;

(ii) Whether the transaction referred to in first defendant’s letter of 22/6/1999 not having been perfected can still bind No. 8, Ogunfowokan Street, Okota Isolo, Lagos when Adedoyin A, Sonuga has since passed on and can no longer take steps to perfect the transaction;

(iii) Whether the presumption of resulting or implied trust in favour of the wife of late Adedoyin A. Sonuga now suing for herself as on administratrix can be overreached by the transaction referred to in first defendant’s letter of 22/6/1999 of which she had no knowledge nor gave her consent to;

(iv)Whether the defendants having been given possession of the title documents of No. 8, Ogunfowokan Street, Okoto-Isolo, Logos for the purpose of a mortgage loan transaction which had been successfully discharged can without further applications and processing, with the knowledge and consent of the wife of late Adedoyin A. Sonuga, utilize the said title documents far o completely new financial transaction without the knowledge and consent of the wife now first claimant;

(v) A questions 7-5 (supra) are answered in claimant’s favour whether the continued withholding by defendants of the original title documents of No. 8 Ogunfowokan Street, Okota-Isolo, Lagos is not unlawful”.

The trial court dismissed the suit. Not satisfied, the appellants filed this appeal with the notice of appeal containing these two grounds of appeal as follows:-

“GROUND ONE

The learned trial judge erred in law when she failed to find that the mortgage loan having been repaid, the mortgage’s equity of redemption meant that the lending bank had no legal right to continue holding unto the title deeds of the property mortgage and went on to dismiss the claim for a declaration and/or order that respondents’ bank should release immediately the title documents covering the property mortgaged.