Reynolds Construction Company Nigeria Ltd. V. Rockonoh Properties Company Ltd (2005)

LAWGLOBAL HUB Lead Judgment Report

OGUNTADE, J.S.C

The dispute leading to this appeal arose from a landlord and tenant relationship. The respondent was the plaintiff at the Enugu High Court. It owned an estate consisting of several buildings in Enugu. It leased several of these buildings to the defendant, a foreign construction company. There were three lease agreements covering the 24 properties leased. The first agreement dated 1/11/79 covered 12 semi-detached buildings; the second dated 1/9/80 covered 6 semi-detached buildings and the third dated 1/3/80 covered six bungalow units. The estate is at Rockonoh Estate, Ekulu West Extension, G.R.A., Enugu. In respect of the buildings covered by the first agreement, the agreed rent was N102,000.00 per annum at N8,500.00 per unit. For the buildings covered by the second agreement, the agreed rent was N54,000.00 per annum at N9,000.00 per unit; and the rent for the third set of building was N36,000.00 per annum at N6,000.00 per unit.

The plaintiff claimed against the defendant for:

“1. The sum of N369,000.00 (Three hundred and sixty-nine thousand Naira) being arrears of rent in respect of plaintiff’s houses situated at Rockonoh Estate, Ekulu West Extension, G.R.A., Enugu, which were let to the defendant by the plaintiff under lease agreements, which arrears the defendant has refused and/or neglected to pay despite repeated demands; made up as follows:

(a) From 1st March, 1984 to September 1986 in respect of 6 bungalows at the rate of N6,000.00 (Six thousand Naira) per annum, per house i.e. N93,000.00 (Ninety-three thousand Naira);

(b) 1st November, 1984 to September, 1986 in respect of 12 semi-detached buildings at the rate of N8,500.00 (Eight thousand, five hundred Naira) per annum, per house – N204,000.00;

(c) 1st December, 1984 to 31st March, 1986 in respect of 6 semi-detached storey buildings at the rate of N9,000.00 (Nine thousand Naira) per annum, per house – N72,000.00.

2. Mesne profits at the rate of N138,000.00(One hundred and thirty-eight thousand Naira) per annum from 1st October, 1986 until the defendant yields up possession thereof to the plaintiff;
3. An order of court against the defendant to comply with the provisions of the tenancy agreement and the restoration of plaintiff’s house aforesaid to habitable and tenantable condition, until the defendant yields up possession thereof to the plaintiff;
4. Simple interest at the prevailing commercial rate of 13 percent on the N369,000.00 from the 1st day of March, 1984 until judgement.”

The parties filed and exchanged pleadings. The defendant initially raised a counter-claim. This was however withdrawn in the course of the hearing before the trial court. The case was heard by Edozie, J. (as he then was). On 31st May, 1990, the trial Judge in his judgment dismissed in their entirety the claims made by the plaintiff. The plaintiff was dissatisfied. It brought an appeal against the judgment before the Court of Appeal, Enugu Division. The defendant also brought a cross-appeal. The Court of Appeal, Enugu (hereinafter referred to as the (court below) in its judgment on 24/4/96 allowed the appeal and the cross-appeal. It concluded in these terms:

“The judgment and orders of the lower court are hereby set aside. The appellant is therefore granted outstanding rents to the 1st October, 1986 in the sum of N369,000.00 with 13% interest per annum as claimed. Appellant is also awarded mesne profit in the sum of N360,000.00 in respect of the 18 houses that the respondent occupied from 1st October, 1986 to the date it vacated the houses. The appellant is awarded costs in the sum of N1,000.00 only.”

The defendant was dissatisfied with the judgment of the court below. It has brought this appeal against it. In the brief filed on behalf of the defendant (i.e. appellant’s brief), the issues for determination in the appeal were identified as the following:

“(1) Whether the Court of Appeal was correct in law when it held that ‘mitigation’ was not pleaded by the appellant and that mitigation was the crucial reason for dismissing the plaintiff’s claim.

(2) If ‘mitigation’ was not pleaded by the appellant as the Court of Appeal held, did the respondent prove its case on a balance of probabilities as required by law

(3) Having allowed the cross-appeal, was the Court of Appeal correct in law when it failed to consider its effect on the whole case

(4) Whether the respondent proved the amount of N369,000.00 arrears of rent awarded it by the Court of Appeal.