Skymit Motors Limited V. United Bank For Africa Plc. (2012)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

JOHN INYANG OKORO, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the decision of the Lagos State High Court delivered on 25th May, 2009 wherein the court below refused the prayers of the Appellant for both pre and post Judgment interest on the sums admitted by the Respondent during the pre-trial conference on 7th December, 2006.

The facts of this case, as can be gleaned from the Record of Appeal are that the Appellant, as Claimant at the court below commenced this action by way of a Writ of Summons and Statement of Claim which claimed against the Respondent as follows:

“1. A declaration that the arbitrary, unilateral and/or unlawful variation and/or imposition of rates of interest contrary to the agreed rate of interest is null and void and of no effect.

2. A declaration that the arbitrary, unilateral and/or unlawful variation and/or imposition of excess charges on commission on turnover and VAT is null and void and of no effect.
3. A declaration that the arbitrary, unilateral and/or unlawful variation and/or imposition of charges excess charges of commitment management, consultancy and/or arrangement fees contrary to the agreed terms of contract is illegal, null and void and of no effect whatsoever.
4. A declaration that the arbitrary, unilateral and/or unlawful interest charges on excess facility used (if any) is illegal, null and void and of no effect.
5. An order compelling the Defendant to reverse all unlawful, unilateral and arbitrary charges, deductions and debits imposed on the Plaintiff’s account and to credit the Plaintiff’s account to the tune of N38,037,690.19 (thirty eight million, thirty seven thousand, six hundred and ninety naira, nineteen kobo) being total sum unlawfully debited from the Plaintiff’s account, and appropriated by the Defendant as at 31st December, 2002, made out as follows:

i. The sum of N8,464,120.03 (eight million, four hundred and sixty four thousand, one hundred and twenty naira, three kobo) only from the Defendant representing interest charges in excess of agreed interest rate for facility granted by the Defendant to the Plaintiff on account No. 1118117111 from and including the months of January 1998 to July 2000.

ii. The sum of N1,373,918.50 (one million, three hundred and seventy three thousand, nine hundred and eighty naira, fifty one kobo) only from the Defendant representing excess interest charges on the Plaintiff’s account No. LD9929500013 by the Defendant from and including March 1998 to January 2000.

iii. The sum of N1,130,225.42 (one million one hundred and thirty thousand, two hundred and twenty five naira, forty two kobo) only from the Defendant being illegal and unlawful charges and/or excess charges on commission on turnover and VAT by the Defendant from and including March 1998 to January 1999.

iv. N3,907,399.16 (three million, nine hundred and seven thousand, three hundred and ninety nine naira, sixteen kobo) only from the Defendant being the total sum charged and/or imposed in excess by the Defendant on the Plaintiff as management, facilities, processing arrangement and commitment fees per month from and including the February 1998 to September, 1999.

v. N22,921,912.82 (twenty two million, nine hundred and twenty one thousand, nine hundred and twelve naira, eighty two kobo) only being interest accrued on the unlawful excess charges up to 31st December, 2002.

vi. N240,144.25 (two hundred and forty one thousand, one hundred and forty four naira, twenty five kobo) being excess interest charged on reversed entries.

6. An order compelling the Defendant to credit the Plaintiff’s account No. 1118117111 and LD992500013 with the Defendant with all accrued interest on each and every reversed charges, debit and deduction represented in claims 5 from the date each and every such charges, debit and deduction was made.
7. Damages in the sum of N100,000,000.00.
8. Interest at the rate of 21% on reliefs 5, 6, 7, 8, and 9, 10, 11, 12, 13, 14 & 15 from the dates stated herein to when final judgment is delivered and thereafter interest at the rate”.

In response to the Appellant’s Statement of Claim, the Respondent filed Statement of Defence denying the Appellant’s claims. At the close of pleadings, the matter proceeded for pre-trial conference. On 7th December, 2006, during the pre-trial conference, the Respondent through its representative admitted there was excess charge in the sum of N7,209,906.55k (seven million, two hundred and nine thousand, nine hundred and six naira, fifty five kobo). The pre-trial Judge entered Judgment in favour of the Appellant in the above admitted sum.

On 28th April, 2008, the Appellant filed an application via a Motion on Notice praying the court for the following orders:-

“1. An order awarding interest to the Claimant at the rate of 21% per annum from the 18th day of June, 2003 up till and including the current date and until the said interest is finally liquidated by the Defendant in respect of the Judgment of the Court delivered on 7th December, 2006 in the sum of N7,209,906.55 (seven million, two hundred and nine thousand, nine hundred and six naira fifty five naira).

2. Any further or other orders as the court may deem fit to make”

The Respondent filed a 10 paragraph counter affidavit in opposition to the Appellant’s motion. Written addresses in respect of the motion were adopted on 2nd June, 2008 and on 25th of May, 2009, the learned pre-trial Judge delivered his Ruling refusing to grant to prayers of the Appellant as contained the motion paper.