Nigeria Airways Limited V F.A. Lapite (1990)

LawGlobal-Hub Lead Judgment Report

WALI, J.S.C. 

In the trial court the plaintiff filed a suit against the defendant asking for the following reliefs:

“1. A declaration that the letter dated the 11th of September, 1985 purporting to terminate the appointment of the plaintiff as a pension accountant in the defendant company is ineffective and ultra vires the powers of the maker thereof.

2. A declaration that the plaintiff is entitled to his full salary and emoluments and all other entitlements from April, 1984.
3. An order directing the defendant to restore the plaintiff to his office and position as principal accountant/pension accountant.
4. In the alternative, the sum of N138,387.49 being special and general damages for wrongful dismissal.”

After pleadings were filed and exchanged, the defendant filed a motion on notice dated 4th April, 1986 praying for an order-

“(a) striking out the plaintiff’s claim for “a declaration that the letter dated 11th September, 1985 purporting to terminate the appointment of the plaintiff….the defendant company is ineffective and ultra vires the powers of the maker thereof”;

(b) dismissing the plaintiff’s action.

AND FURTHER TAKE NOTICE that the grounds upon which the foregoing orders are sought are:-

1. The adjudication of the plaintiff’s claim for a declaration that the said letter is ineffective and ultra vires the powers of the maker will require consideration of the articles of association of the defendant company, thus making the claim a matter arising from the operation of the Companies Act, 1968, and therefore a claim in respect of which only the Federal High Court has jurisdiction;
2. Even if the High Court of Lagos State has jurisdiction to adjudicate upon the claim, there is no pleading that the plaintiff is a member of the defendant company. In the circumstances, therefore, the plaintiff has no locus standi to complain about the breach of any of the regulations contained in the articles of association of the defendant company;
3. Even if all the facts pleaded in the statement of claim are proved, the plaintiff would nevertheless not be entitled to damages for wrongful dismissal.”

After hearing and considering the arguments presented by learned counsel for and against the motion the learned trial Judge, Omotosho, J., delivered a ruling on 19th August, 1986, in which she arrived at the conclusions that-

“(i) this court lacks jurisdiction to entertain it.

(ii) The plaintiff has no locus standi to prosecute the action as presented.

(iii) the pleadings disclose no reasonable cause of action.”

She accordingly dismissed the action.

Dissatisfied with the trial court’s decision, the plaintiff appealed to the Court of Appeal, Lagos Division. After the parties had filed and exchanged briefs of arguments and had also made oral arguments in elaboration thereof the issues for determination as evidenced in its judgment were narrowed down to –

“1. Did the plaintiff have the locus standi to complain about a breach of the articles of association of the defendant company (of which he was not a member) when such breach affected him in the enjoyment of his rights as an employee of the defendant company