United Bank for Africa Plc V. Emmanuel Olufemi Ogunsanya & Anor (2002)

LawGlobal-Hub Lead Judgment Report

AKINTAN, J.C.A.

T

he appellant is a commercial bank, with branches in many parts of the country, including Ibadan. The respondents were the plaintiffs in this action instituted at Ibadan High Court on 6/4/94 as Suit No. I/495/94, while the bank was the defendant. The first respondent was a businessman, trading under the name and style of Asaniaye Trading Stores, and he maintained a bank account at an Ibadan branch of the appellant bank. The second respondent is the father of the first respondent, and he is the owner of the house at SW4/736 Asaka’s Compound, Oke-Foko, Ibadan.

The 1st respondent, sometime in 1986, approached the appellant bank, for a loan to finance his business operations. The bank obliged him, but the 1st respondent had to give a security for the loan. The 2nd respondent surrendered the title deed of his house, at SW4/736 Asaka’s Compound, Oke-Foko, Ibadan, to his son, the 1st respondent, so that it could be used as security for the loan. The arrangement was acceptable to the bank, who accepted the document. All the necessary documents were duly prepared and executed and the bank granted the required loan.

The dispute that led to the institution of this action, arose after the 1st respondent had repaid the loan granted him by the bank. He thereafter, requested the bank for the release of his father’s title deed, which he deposited with the bank as security. The bank could not release the document, despite repeated demands. The respondents, as plaintiffs, had to institute the action in which they claimed as follows in paragraph 33 of their amended statement of claim:

“(1) Declaration that the defendant has been unlawfully detaining the plaintiffs title documents, in respect of the plaintiffs property, situate, lying and being at SW4/736 Asaka’s Compound, Oke-Foko, Ibadan, which title documents the plaintiffs deposited with the defendant in 1986, to secure a loan of N25,000.00 which loan the plaintiffs liquidated on 26th June, 1992.

(2) The sum of N3,000, 000 being special and general damages in detinue against the defendant for its continued wrongful and illegal detention of the plaintiffs title documents in respect of premises described in (1) above, since 26th June, 1992, when the plaintiff liquidated its indebtedness to the defendant.

(3) MANDATORY ORDER on the defendant to release the said title documents registered as Number 33 at page 33 in volume 674 of the Lands Registry, Ibadan, to the plaintiffs.

In the Alternative

The sum of N5,000,000 (Five Million Naira) only as compensation for the failure of the defendant to produce the said title documents.”

Pleadings were filed and exchanged and the trial took place before Oladeinde, J. The two plaintiffs gave evidence for the plaintiffs at the trial, while the case for the defence was presented by one Mrs. Aderonke Balogun, an official of the bank from its head office in Lagos. It is the plaintiffs’ case that after the 1st plaintiff/respondent had repaid the loan, he took from the bank, he (1st plaintiff) requested for the return of the title deed, he deposited with the bank, which he wanted to use as security for another loan from another financial institution. The defendant/appellant failed to deliver the document to the 1st plaintiff/respondent. In its place, a certified copy of the same document obtained by the bank from the Deeds Registry, was delivered to the 1st respondent. The certified copy was rejected by the 1st respondent. The appellant again offered N2,000 to the 1st respondent, so that he could obtain a certified copy in place of his missing title deed. Again, the 1st respondent also rejected the offer.

The case for the defence, as presented by the only defence witness, Mrs. Aderonke Alake Balogun, a manager at the bank’s headquarters, was that, the 1st plaintiff started banking with the bank in 1985. She confirmed that the 1st plaintiff applied for an overdraft from the bank in 1986, and used the title deed of the 2nd plaintiff’s house as collateral. The facility was granted. She also confirmed that the 1st plaintiff eventually paid off the loan and demanded for a return of the title deed. When the bank could not find the title deed, a certified copy of the same deed was obtained from the Deeds Registry, and sent to the 1st plaintiff as a replacement. That was, however, rejected by him. She also said that the bank offered him N2,000 to enable him procure another certified copy. That offer was also rejected by the 1st plaintiff.

The learned trial Judge delivered his reserved judgment in the case on 30/11/98. He held that the plaintiffs had proved their claim against the defendant bank. The learned Judge also held, inter alia, as follows in the concluding portion of the judgment:

“The 1st plaintiff gave evidence as follows-