Scoa Nigeria PLC V. Sterling Bank PLC (2016)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

SAMUEL CHUKWUDUMEBI OSEJI, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the judgment of the High Court of Lagos State delivered by A.O. ADEFOPE-OKOJIE J. (Mrs.) on the 20th day of November 2012 wherein Suit No LD/998/2009 was dismissed.

Sometimes in 1996, the Appellant herein entered into a lease agreement with the Respondent(then known as Magnum Trust Bank Plc) in respect of its property situate at No. 67 Marina, Lagos at a yearly rent of N3, 387, 340 (Three million, three hundred and eighty seven thousand, three hundred and forty Naira) with effect from 1-9-1996. By clause 4 of the Agreement, the lease was renewable at a rent to be mutually agreed upon by the parties, but in the event of a disagreement on the rent to be paid, the matter shall be referred to an arbitrator.

Sometimes in 2004, the Respondent by a letter dated 1-6-2004 indicated its interest in renewing the lease. This engendered the exchange of series of correspondences to negotiate an agreeable rent for the property. At a point, the Appellant offered to accept N 25 million. Subsequently, the Respondent deposited the sum of N45 million Naira into the

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account the Appellant operates with said Respondent and stated in the accompanying letter that the money is for three years? rent at the rate of N15 million per annum. But the Appellant wrote to state that the rent was to be N22.5 million per annum and the N45 million will be treated as rent for two years. Disagreement over the actual rent payable continued till the Respondent gave notice and did vacate the property by 31-12-2008 and also issued a cheque in the sum of N33, 333, 33 as payment for arrears of rent for the period 1-9-2007 to 31-12-2008. This was not acceptable to the Appellant who then after further letters to the Respondent instituted an action in the Lower Court against the Respondent as Defendant wherein the following reliefs were claimed, vide a writ of summons and statement of claim dated 22-6-2009.

1. The sum of N15,000,000 (Fifteen million Naira) being balance of the rent due from the Defendant to the claimant on the property situate and known as No. 67 Marina, Lagos, Lagos State for the period 1st September 2004-30th August 2007.
2. Interest of 21% per annum on the said sum of N15, 000,000 (Fifteen million Naira) with

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effect from 12th day of June 2009 until judgment and thereafter at the rate of 6% per annum until final liquidation of the judgment debt.

3. The sum of N1,500,000 (One million, five hundred thousand Naira) being cost of prosecuting this Suit.

The Respondent reacted by filing a statement of defence on 28-8-2009 and in response to it, the Appellant filed a reply to statement of defence on the 31-8-2009.

At the hearing of the Suit, one witness each testified for the parties. Upon conclusion of evidence, the parties filed and served their written addresses.

In a judgment delivered on the 20-11-2012, the suit was dismissed for lack of jurisdiction to entertain same.

The Appellant being aggrieved by the outcome of the judgment filed a notice of appeal dated 10-12-2012.

In compliance with the rules of this Court, the parties subsequently filed and served their briefs of argument which they also adopted at the hearing of this appeal on 1-3-2016.

?In the Appellant?s brief of argument settled by N.O. BALOGUN Esq and filed on 7-3-2013, the following three issues were formulated for determination from the three grounds of