Shell Petroleum Development Company Limited V. Frontline Television Limited (2011)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

MUSA DATTIJO MUHAMMAD, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the judgment of the High Court of Rivers State delivered on 14th November 2000 wherein the defendant was found liable for the breach of the contract between it and the plaintiff. The Respondent as plaintiff had in paragraph 18 of its statement of claim claimed against the Appellant thus:

“18 wherefore, the plaintiff claims against the defendant as follow:

(a) The sum of N10,000,000.00k (ten million naira) as fees for consultance services rendered by the plaintiff to the defendant at the request of the defendant in respect of the design for the Production of educational films for the Defendant’s Driver Education Programme.

(b) A declaration that having regard to the mutual understanding between the plaintiff and the defendant and the undertaking made to the plaintiff by the defendant, the plaintiff is the only company entitled to be awarded the contract for the Production of education films for Driver Education Pragramme by the Defendant.

(c) The sum of N100,000.00 (one hundred million naira) being general damages for breach of contract or undertaking.”

Respondent’s Managing Director was its only witness at the trial. The Appellant called three witnesses to lay case bare. In a considered judgment, the trial court found the defendant liable for breach of contract or undertaking” and awarded it forty five million naira. The court however rejected plaintiff’s ten million naira claim for consultancy services allegedly rendered to the defendant.

Dissatisfied with the decision, the defendant has appealed to this court by its amended notice of appeal containing five grounds.

Parties have filed and exchanged briefs of argument which, at the hearing of the appeal, were adopted and relied upon. The three issues contained in the Appellant’s brief as having arisen for the determination of the appeal are as follows:

“i. was the learned trial judge right in holding that there existed a contract or undertaking by which the defendant agreed that plaintiff is the company entitled to be awarded the contract for the production of films for its Driver Education Programme? (Based on Grounds 1, 2 and 3).

ii. was the learned trial judge right to enter judgment against the Defendant for breach of contract when there was no valid and or binding contract between plaintiff and defendant? (Based on ground 4).

iii. was the learned trial judge right in law in awarding N45,000,000.00 as general damages in this case, when:

(i) The loss allegedly suffered by the plaintiff is quantifiable?

(ii) The said sum of N45,000,000.00 is an erroneous estimate of damages? (Based on ground 5).”