Savannah Sugar Company Limited V. Wabbey Farms Limited (2013)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

JUMMAI HANNATU SANKEY, J.C.A. (Delivering the Leading Judgment)

The Appellant, Savannah Sugar Company Ltd, entered into an agreement with the Respondent, Wabey Farms Ltd, on the 19th February, 1988 to take a sublease of 4000 hectares of its farmland for a period of twenty (20) years. Ingrained in the agreement were conditions for the Respondent Company to grow sugarcane on an increasing percentage of the land over a given period; as well as other conditions for sharing of the crop after harvest between the parties.

The Respondent Company defaulted on the agreement, and the Appellant took over the farmland because of minimal performance on the part of the Plaintiff. However, following the intervention of the Bureau for Public enterprises in the affairs of the Respondent Company in the process of privatization, the Appellant Company was offered and it accepted the sum of N711, 000.00 in full and final settlement of all his outstanding liabilities with the Respondent.

The Respondent Company, dissatisfied, however filed an action against the Appellant Company at the Adamawa State High Court claiming both special and general damages. When parties failed to resolve their dispute by arbitration, in line with the lease agreement, the matter proceeded to trial.

By a Writ of summons filed on the 7th August, 2002, but issued on the 15th November, 2002, the Respondent Company claimed for special and general damages. This was later amended by a Further Amended Statement of Claim dated 16th March, 2009 at pages 24-30 of the Record, and therein it claims thus:

1. “The sum of N22, 595, 000.00 being the total value of the investment as well as the estimated profit on the farmland developed for the production of sugar cane which was taken over by the Defendant on 2nd September, 2002.
2. The sum of N50, 000, 000.00 as general damages.
3. Any other relief(s) that the Hon. Court may deem fit to grant.”

By this Further Amended Statement of Claim, the Respondent Company adumbrated the details of his claim. The Appellant Company denied the claim and also filed a Further Amended Statement of defence on the 16th February, 2009 (as contained at pages 38-40 of the Record). During the trial, the Respondent called two witnesses while the Appellant Company called one witness, and between them, some exhibits were tendered. After the addresses of Counsel, the trial Court gave Judgment dismissing the Plaintiff’s claims for special damages on the grounds that the Respondent Company had woefully failed to prove same. The lower Court however awarded the Respondent general damages to the tune of N20, 000,000.00 (Twenty Million Naira Only).

Aggrieved by this decision, the Appellant Company filed its Notice of Appeal on 20th July, 2011, wherein it complained on five (5) grounds. The grounds of appeal, shorn of their particulars, are set out hereunder as follows:

Ground 1

The learned trial Court erred in law in awarding the sum of N20, 000, 000.00 on the basis of exhibit C3.

Ground 2

The learned trial Judge erred in law in awarding general damages against the defendant for wrongful termination of Exhibit C3 on account of loss of anticipated profit and physical development and machinery.

Ground 3

The learned trial Judge erred in law in granting general damages on contract after claim on the same issue which was dismissed by the Court as a head of Special damages.

Ground 4