Standard Trust Bank Limited V. Barrister Ezenwa Anumnu (2007)

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OLUFUNLOLA OYELOLA ADEKEYE, J.C.A.

By a writ of Summons and Statement of claim filed on 18/7/02 the plaintiff – Barrister Ezenwa Anumnu claimed against the defendant Standard

Trust Bank as follows-

“Wherefore the plaintiff claims against the defendant the sum of N10,000,000.00 (Ten Million Naira) being damages for wrongful dishonour of the plaintiffs said cheque No 1408231 or in the alternative the sum of N10,000,000 being damages for negligence in the wrongful dishonour of the plaintiff’s said cheque.”

The facts of the case before the trial court according to the pleadings of the parties were that the plaintiff as a customer of the defendant bank operated the current account No: 04012150901116 at the Garki Business office, Yola Street Garki Abuja. The account was in the name of his legal firm – Joint Heirs Chambers. On the 30th of April 2002 – there was a credit balance of N607, 954.77 in the account. The plaintiff issued cheque No. 01408231 drawn on this account for a sum of N601, 000.00(Six Hundred and One Thousand Naira) to one of his major client at the time Mr. Bimbo Oguntunde. This was in the course of his business as a legal practitioner and he was the sole signatory to the account. Upon presentation of the cheque by Mr. Oguntunde, it was returned unpaid and marked OCR – Meaning – “Drawer Confirmation Required”). The return of the cheque invoked the displeasure of Mr. Bimbo Oguntunde which he expressed and threatened to lodge a complaint about the plaintiff to the Disciplinary Committee of the Nigerian Bar Association. Mr. Bimbo Oguntunde had issued cheques to third parties on the strength of Exhibit A – while those cheques were consequently returned unpaid. The client returned the cheque and insisted on following the plaintiff to the bank to collect cash equivalent of the amount as he was of the impression that the Respondent had misappropriated his money. On the 7th of May 2002, when he issued another cheque in the presence of his client Bimbo Oguntunde for a sum of N601, 000.00 the cashier informed him that the money on the cheque could not be paid because of deductions, a sum of N3, 005 to cover COT and another N1, 050 as charges on the returned cheque from the plaintiff’s Account. The deduction of N1, 050 confirmed that the cheque was dishonoured. The plaintiff gave evidence of a cheque in the sum of N600, 000.00 which he issued in favour of one Mr. Uche Durike on 28/3/02 which was paid without the drawer’s confirmation.

The defendant justified the action in its defence with evidence about the banks policy that any cheques above N100, 000.00 must be pre-confirmed by the drawer while the Respondent failed to confirm Exhibit A, the cheque issued for N601, 000,00. The plaintiff owed it a duty to inform the appellant that he had issued a cheque above N100, 000 which he failed to comply with hence Exhibit A was dishonoured. The plaintiff had never in the course of their business transaction issued a third party cheque above N60, 000 hence the steps taken by the defendant to refer the cheque back for his confirmation. The defendant maintained that referring a cheque back to drawer and marked DCR- i.e. Drawer Confirmation required is one of “Model reasons for dishonouring a cheque. The defendant denied injuring the credibility of the plaintiff or being in anyway negligent in the manner it dishonoured and marked DCR on Exh. A.

Besides Exhibit A the cheque drawn on the account of the plaintiff with the defendant, the plaintiff in the course of trial tendered other documents as Exhibits B-G. In the considered judgment of the trial court, the learned trial judge held in the ultimate paragraph as follows:-

“The plaintiff need not prove actual loss in contract neither does he needs to establish actual damage in libel because it is actionable libel, from the above cases; the plaintiff is entitled to substantial damages.”

The plaintiff told the court that the drawee of Exhibit A was his major client; the client terminated the client and lawyer relationship between him and the plaintiff. The loss of the client is a great blow to the plaintiff’s legal practice. He was subjected to humiliation by the major client who threatened to report him to the Chairman of Nigerian Bar Association Abuja Branch for Disciplinary action. Apart from the fact that Exh A was dishonoured ”Drawer Confirmation Required” was endorsed on same which portray the plaintiff as dishonourable. The court hereby accesses the damages to be paid to the plaintiff as N3, 000,000(Three Million Naira).

In awarding the plaintiff the sum of N3,000,000.00 the court has taken into consideration the value of Naira or the purchasing power of Naira which has come to its lowest level because of what is usually refer to as RUN AWAY inflation.”

Being dissatisfied with the foregoing decision the defendant henceforth to be referred to as the appellant, the Standard Trust Bank Limited appealed to this court.

The appellant complied with processes of appeal as stipulated in the Court of Appeal Rules 2002. At the hearing of the appeal the appellant adopted and relied upon the appellants brief filed on 19/4/06 in which four issues were distilled for determination as follows:-

(1) Whether the claim as formulated by the plaintiff/Respondent is valid to entitle him to the judgment of the lower court?

(2) Whether the damages of N3, 000,000.00 is not erroneous and excessive when the claim is for either breach of contract or alternatively for negligence.