Standard (Nig) Engineering V Nigerian Bank For Commerce And Industry (2006)

LAWGLOBAL HUB Lead Judgment Report

OGBUAGU, J.S.C.

This is an appeal against the decision of the Court of Appeal, Benin Division (hereinafter called the court below) delivered on 29th March, 2001, allowing the appeal by the defendant/respondent to it from the decision of the High Court of Ondo State holden at Akure per Adeloye – Chief Judge, on 25th March, 1996.

Dissatisfied with the said decision, the appellants who were the plaintiffs in the trial court, and also the cross-appellants in the court below, have again, appealed to this court on twelve (12) grounds of appeal.

Both in the amended writ of summons and paragraph 53 of the statement of claim, the appellants, claimed from the defendants/ respondents as follows:

(i) A declaration that the refusal of the defendant to open letter of credit required by the plaintiffs constitutes a breach of the investment and mortgage agreement between the plaintiffs and the defendant.

(ii) An order of specific performance, that the defendant should unconditionally open the letter of credit with the plaintifs’ new suppliers at the current price in 1994 of the machinery and equipment needed for the project,

the subject of contract.

ALTERNATIVELY,

(iii)An order directing the defendant to pay the sum of N430,198,000.00 as damages thus:-

(a)Cost of purchase, stamp duty, Registration of projects with erection of factory building

= N7,000,000.00

(b)Cost incurred in making four trips to England in company of other officials of the supplier and other expenses =2,024, 000. 00

(c)Loss of anticipated profit and earning on the project

= N12,897,000.00