Northwest Energy Nigeria Limited & Anor V. Ibafon Oil Limited (2014)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

ABIMBOLA OSARUGUE OBASEKI-ADEJUMO, J.C.A.: (Delivering the Leading Judgment)

This is an appeal against the judgment of the Hon. Justice Grace Onyeabo of the High Court of Lagos State delivered on 17th May 2013. Judgment was entered in the sum of N104,047,330.60 as special damages in favour of the Respondent in respect of 20,000 tons of Petroleum Product lifted by the Appellants contrary to the terms of Exhibit B(the partnership Agreement/Joint Venture Agreement) between the 1st Appellant and the Respondent and the sum of N50,000 as costs in favour of the Claimant/Respondent.

Summary of the Facts are that, the Claimant entered into a partnership agreement with the Respondent for obtaining/securing the Petroleum Products from the NNPC/PPMC. By the agreement, the 1st Respondent was to use its goodwill to secure the importation/Exportation of the product in the name of ASODYKE.

It was further agreed that the parties would share the product to allocated on 60/40 ratio but the Claimant taking the bulk share. The Defendant was obligated not to use the name Asodyke as the documents provided for any purpose.

Claimant alleged for Defendants breached the Agreement by using the name Asodyke for purposes other than what was agreed resulting in damages the claimant. The Claimant is therefore making a claim for the sum of N211,180,250.60 for breach of contract.

Dissatisfied with the judgment, the Appellants / Defendants appealed vide a notice of Appeal dated 24th of March 2013 on 3(three) grounds, thus:

i. Whether the Lower Court was correct to have accepted, relied and acted on Exhibit C, D1, D2, F and F1 in arriving at her decision? (Ground One of Notice of Appeal)

ii. Whether the Respondent discharged the burden of proving that the Appellants breached Exhibit B – The Joint Venture Agreement/Partnership Agreement in view of the evidence produced by the Respondent? (Ground Two of Notice of Appeal).

iii. Whether the ipse dixit evidence of CW was sufficient to support the Court’s decision in respect of the special damages awarded against the Appellants? (Ground Three of Notice of Appeal).

Appellants’ Brief of Argument is dated and filed 23/10/13 but deemed properly filed on 16/1/14 and a reply brief dated and filed on 23/9/2014 but deemed filed on 25/9/14 and settled by M. A. Kazeem. While, the Respondent’s Brief of Argument was dated and filed on 3/4/14 was deemed properly filed on 25/9/14 and settled by I. P. Dick, Esq.

The Respondent formulated a sole issue for determination, which encompasses the 3 grounds of Appeal thus:

“Whether the judgment of the Honourable Court below was based on legal, credible and/or reliable evidence?”

For the purpose of determining this appeal, I shall adopt the Appellants’ issues which are specific complaints of the judgment.

Issues 1 and 2 are formed from ground one of the Notice of Appeal and flows from the same source, therefore they shall be taken together. It complains of the admissibility of Exhibits C, D1, D2, F and F1, and the reliance thereon by the lower court in arriving at her decision.