Union Bank of Nigeria Plc V. Mr N. M. Okpara Chimaeze (2006)

LawGlobal-Hub Lead Judgment Report

U.M. ABBA AJI, J.C.A.

This appeal is against the judgment of Edo State High Court sitting in Benin presided over by Hon. Justice V.A.O. Omage J (as he then was) delivered on the 31st day of May 1996.

The Respondent as the Plaintiff sued the Appellant as the Defendant claiming the following reliefs:-

“The Plaintiff claims against the Defendants jointly and severally the sum of thirty million Naira (N30,000,000.00K) being special and general damages for breach of contract in that on or about the 10th day of May, 1994, the Defendants at its Benin City branch, dishonoured the Plaintiff’s cheque No. 85053 of 5/5/94 for N205,936.50k in favour of Lever Brothers Nigeria Plc without cause.”

In the amended statement of claim filed by leave of court on 11th October, 1994, the plaintiff claimed as “particulars of special damages” as follows:-

Money deducted from Plaintiffs account N206,000,00k

Loss of profit for 1994/95 N10,000,000.00k

Solicitors fees N250,000.00k

General Damages N19,544.00k

Total N30,000,000.00k

Pleadings were duly filed and exchanged. The Respondent testified and called two other witnesses and the Appellant called four witnesses. The facts of the case as can be deduced from the pleadings and the evidence of the witnesses are clear and unambiguous.

The Plaintiff/Respondent is a businessman and a trader based in Benin City and an appointed distributor of all Lever Brothers Nigeria Plc products in Edo, Delta, and Kwara States. He also holds a current account No. 1971261605 with the appellant bank at its Mission Road, branch office, Benin City. The Respondent on 9/5/94 lodged a total sum of N206,000.00k into his said account through Miss D. Nwakaeze, a sales girl and cashier with the Respondent. The Respondent on 5th/5/94 issued cheque No. 85053 for N205,966.50 (Two hundred and five thousand, nine hundred and sixty six naira, fifty kobo) to Lever Brothers Nigeria Plc (LBN) to cover credit purchase of its products. When the said cheque was presented to the Appellant for payment on 10th/05/94, it was returned unpaid, with the endorsement “Drawer’s Attention Required”. The Respondent’s case was that at the time this cheques to Lever Brothers Nigeria plc was returned unpaid by the Appellant, he had a credit balance of N207,978.00k (Two hundred and seven thousand, nine hundred and seventy eight Naira) in his account and that a sum of N206,000.00(two hundred and six thousand Naira) was wrongly debited from his account. It was also the Respondent’s case that the Appellant’s dishonour of his cheques caused him special and general damages.

The Appellant’s case was that the so called cash lodgment of N206,000.00k claimed by the Respondent was fictitious in that Miss D Nwakaeze did not lodge any physical cash in the plaintiffs account. That any document evidencing such lodgment was fraudulent and fictitious book entries. It was the Appellants’ case that there was a conspiracy between the Respondent’s staff and one of its own staff to perpetuate the fraud. That when the Appellant discovered the fraud, it had no other option than to reverse the fictitious entries.

At the close of evidence, the learned trial judge in a considered judgment gave judgment to the Respondent as follows:-