United Bank For Africa Plc V. Godm Shoes Industries (Nig.) Ltd (2010)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

AYOBODE OLUJIMI LOKULO-SODIPE J.C.A (Delivering the Leading Judgment)

This appeal is against the judgment delivered on 10th October, 2005 by Hon. Justice C.E. Iyizoba of the Onitsha Judicial Division of the High Court of Justice, Anambra State (as he then was), in SUIT NO. 0/829/1998 – GODM SHOES INDUSTRIES (NIG.) LTD V. UNITED BANK FOR AFRICA PLC. The learned trial Judge entered judgment for the Plaintiff, i.e. GODM SHOES INDUSTRIES (NIG.) LTD in the sum of N4,500,000.00 being the value of the a draft paid into the Plaintiffs account with the Defendant Bank with interest at the rate of 10% per annum from 16/4/96 until the date of judgment and thereafter at the rate of 5% on the judgment debt from the date of judgment and until the same is entirely liquidated. Costs assessed at N10,000.00 was also awarded in favour of the Plaintiff.

The brief facts of the case as gathered from the Amended Statement of Claim and Further Amended Statement of Defence respectively, of the parties filed before the High Court (hereinafter referred to as “the lower court”) are that the Plaintiff (hereinafter referred to as “the Respondent”) claimed the sum of N4.5 million from the Defendant Bank (hereinafter referred to as “the Appellant”). The said sum is the value of a draft of the Allied Bank Plc, which the Respondent claimed to have paid into its account with the Appellant on 4/4/96. The Respondent alleged that if the Appellant had presented the draft to the Allied Bank Oguta Road, timeously, the same would have been cleared and the value thereof credited into its (i.e. Respondent’s) account within four working days. It is also alleged by the Respondent that the Appellant had a duty of immediately returning its draft by means of an advice slip even if Allied Bank was sent out of the clearing house on 10/4/96 and that the Appellant did not do this.

The Respondent alleged that the Appellant on becoming aware that Allied Bank had been sent out of the clearing house ought to have promptly retrieved the draft to enable it (i,e. Respondent) proceed to Abuja (from where the draft was raised) to obtain cash therefore. The Respondent further claimed interest on the value of the draft at the rate of 21% per annum or the prevailing Central Bank of Nigeria interest rate from 16/4/96 until judgment and thereafter at the rate of 5% per annum on the judgment debt. Though the Respondent initially had a claim for N10 million aggravated or exemplary damages, the said claim was later withdrawn and duly struck out by the lower court.

The Appellant did not deny the lodgment by the Respondent of the Allied Bank Plc draft in the sum of N4.5 million into its account with it (i.e. Appellant). The Appellant however claimed that it was on 9/4/96 that the draft was paid in and not 4/4/96 as claimed by the Respondent. The Appellant further claimed that it timeously dealt with the draft paid in by the Respondent by presenting it for clearing on 10/4/96 but that the draft could not be cleared because Allied Bank Plc was sent out of the clearing house on the said 10/4/96. The Appellant in the main denied that it breached any duty of care it owed the Respondent in respect of the draft.

The Respondent called three witnesses in the proof of its case at the lower court; while the Appellant called one witness. The lower court after reviewing and evaluating the evidence adduced by the parties as well as the addresses of their respective counsel, entered judgment in favour of the Respondent in the terms hereinbefore stated.

The Appellant being dissatisfied with the judgment of the lower court lodged an appeal against the same by a Notice of Appeal dated 12/10/2005 and filed on 14/10/2005. The Notice of Appeal contains four grounds of appeal. The grounds of appeal shorn of their respective particulars read thus:

“GROUNDS OF APPEAL

(i) MISDIRECTION:

The Learned Trial Judge misdirected himself by delivering Judgment in favour of the Plaintiff after taking cognisance of the public holidays between the 4th day of April, 1996 and the 10th day of April, 1996 when Allied Bank Plc went out of the Central Bank of Nigeria clearing house.

(ii) MISDIRECTION:

The Learned Trial Judge misdirected himself by holding that the Plaintiff sufficiently proved that it lodged the bank draft with the Defendant on 4/4/96 and thereby resolved the issue as to the date of lodgment of the draft in favour of the Plaintiff.

(iii) ERROR IN LAW:

The Learned Trial Judge erred in law by holding that the particulars set out in paragraph 14 and especially in paragraph 14(a) of the Plaintiffs Amended Statement of Claim dated 7/11/2001 constitutes (sic) sufficient particulars and cover or mean that the Defendant was negligent in not presenting the draft for clearing on 9/4/96 and by holding that the Defendant was negligent in not presenting the draft on 9/4/96 which does not form part of the Plaintiffs case thereby formulated a case for the Plaintiff.