Shoreline Liftboats Nigeria Ltd. & Ors V. Premium Insurance Brokers Ltd. & Anor (2012)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

RAPHAEL CHIKWE AGBO, J.C.A (Delivering the Leading Judgment)

The appellants were defendants in Suit No. FHC/ASB/CS/69/2009 at the Federal High Court sitting at Asaba. The respondents were the plaintiffs. The 1st respondent is an Insurance brokerage company while the 2nd respondent is its chief executive. 1st and 2nd appellants are operators in the maritime industry while the 3rd appellant is their chief executive. Sometime in 1997 the appellants approached the 1st respondent to procure for them insurance cover for their three boats from Insurance companies.

This the respondent did from a brace of Insurance companies. The total premium for the three policies was in the sum of N3, 115,000.00 out of which the appellants paid only N100, 000.00. The respondent mounted pressure on the appellants who issued cheques to the appellants in the sum of N380, 250.00. These cheques on presentation to the bank bounced. The attempt at the recovery of the premium owing having failed, the respondents took out a writ of summons at the Federal High Court against the appellants claiming as follows:-

“(a) As against the 1st and 3rd defendants, the sum of N1, 9670250.00 (One million, Nine hundred and Sixty-seven thousand, Two hundred and fifty Naira) being the balance sum/premium payable on the two (2) policies viz (i) PMH/DB390/005/96/WR and (ii) MH/87/3/433904/D renewed/taken out by them through the services of the plaintiffs whom they engaged as their brokers;

(b) As against the 2nd and 3rd defendants, the sum of N73, 750.00 (seventy three thousand, seven hundred and fifty Naira) being the total premium payable on policy No. MH/87/3/422914/X taken out by them through the services of the plaintiffs whom they engaged as their brokers.

(c) Interest at the rate of 21% per annum from 1/11/97 for the 1st policy, from 30/6/99 for the 2nd policy and from 31/5/99 for the 3rd policy, to when judgment is given and thereafter at a rate of 10% until the judgment sum is liquidated.”?

The parties exchanged pleadings. The case was heard on the pleadings and in a considered judgment the trial court adjudged as follows:

“The plaintiffs’ action succeeds and the reliefs pleaded in paragraph 21(a), (b) and (c) of the statement of claim dated 22/11/2000 and filed on 27/11/2000 are granted as prayed.”

Dissatisfied with this judgment the appellant filed their appeal. The notice of appeal contains seven grounds of appeal to wit:

“3. (i) ERROR OF LAW:

The learned trial Judge erred in law in granting all the reliefs sought by the plaintiffs.

(ii) ERROR OF LAW:

The learned trial erred in law when he held that there was no privity of contract between the defendants and the Insurance companies.

(iii) ERROR OF LAW: