The Shell Petroleum Dev. Co. Of Nig. Ltd V. Chief Mark Ejebu & Anor (2010)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

EJEMBI EKO, J.C.A (Delivering the Leading Judgment)

The Respondents were the plaintiffs at Bayelsa state High court (coram Kate Abiri, J) in the suit no. YHC/ 54/98: The claim of the Respondents as per their joint statement of claim is for the sum of N100m (one Hundred Million Naira) being and representing general and special damages for the blockade of AKANAFA LAKE by the Defendant’s Deep Access Road, within the jurisdiction of the honourable court.

The writ of summons was taken out on 27th day of July, 1998

The statement of claim avers, inter alia, that some time in 1991 the Defendant, now the Appellant, constructed its Gbaram Deep Field Access Road across Akanafa Lake and thereby sand-filled and completely blocked the Akanafa Lake and effectively prevented movement through the lake to the extent that while one side of the lake is flooded the other side is dried, thus causing permanent flood on one side of the swamps, lakes and ponds and total deprivation on the other side.

For this the Respondents claimed a total of N100,000.000.00 (one hundred Million Naira) with the following particulars: (sic):

A. Special Damages

i. Timber: 150 people earning N30,000.00 each per annum for 8 years =….. ……..N36,000,00

ii. Fishing: 150 people earning N25,000.00 each per annum for 8 years =……….N 30,000.00

iii. Farming: 100 people earning N20,000.00 each per annum for 8 YEARS=……N16,000.00

N82,000.00

B. General Damages for Inconveniences= N18,000.00

TOTAL = N100,000,000.00

Paragraphs 10, 11 and 12 of the statement of claim, very germane to the appeal, are as follows:

10. In 1996, after several appeal to the Defendant to deblockage the Lake the plaintiffs formerly (sic) wrote the Defendant complaining of this obstruction and the Defendant replied. The plaintiffs’ letter of 27/3/96) through their claims agent and the Defendant’s letter Ref. No. 24412245 dated 30/3/96 will be relied upon at this trial.
11. The Plaintiffs and the Defendant jointly investigated the Plaintiffs’ claim. Defendant accepted liability and negotiation for quantum of damages was carried out on 5/3/98. Defendant was willing to pay only N100,000.00 for both claims. Defendant finally confirmed its unwillingness to pay higher amount by letter dated 25/5/98.
12. All efforts to persuade the Defendant to adequate compensation have failed and the plaintiffs have suffered damages.

The Defendant filed Statement of Defence through Dejo Laminkanra, Esq., of counsel. The Defendant did not deny constructing the access road in 1991. That fact was expressly admitted. The Defendant, the present