Unity Bank PLC V. Kayode Olantunji Esq (2014)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

HABEEB ADEWALE OLUMUYIWA ABIRU, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the judgment of the Kano State High Court in Suit No K/537/2010 delivered by Honorable Justice Wada Abubakar Rano on the 14th of June, 2012. The action before the lower Court was commenced by the Respondent, as plaintiff, against the Appellant, as defendant, and the claims were for:

i. A declaration that the debriefing of the Plaintiff and termination of his contract for legal services in the recovery of the indebtedness of Alhaji Sabiu Bako and Sabiplast Nig. Ltd, the Defendant’s Kano City customers, in the circumstances of this case is wrongful, illegal and constitutes a breach of contract with the Plaintiff.

ii. A declaration that the Plaintiff is entitled to compensatory damages of 10% recovery fees of the total indebtedness of the Defendant’s customers in the judgment obtained by the Plaintiff in Suit No K/389/03 in the sum of N12 Million.

iii. An order for the immediate payment to the Plaintiff of 10% of the recovered sum of N38 Million from the Defendant’s customers, Alhaji Sabiu Bako and Sabiplast Nig. Ltd, in respect of the judgment obtained by the Plaintiff in Suit No K/389/03 in the sum of N3.8 Million.

iv. An order for the payment to the Plaintiff of 10% of the balance of the judgment sum of N74 Million which the Defendant’s customers have agreed to pay and have commenced instalmental payment in the sum of N7.4 Million representing 10% recovery fees being damages flowing from the Defendant’s breach of contract.

v. Court interest on the sums awarded from the date of judgment until liquidation and costs.

The case of the Respondent on the pleadings was that by a letter dated the 19th of May, 2003, the Appellant contracted his legal services for the recovery of the indebtedness of its customers, Alhaji Sabiu Bako and Sabiplast Nig. Ltd, and which was in the sum of N203,593,193.71 as at 30th of April, 2003 and that his stated fee for the brief was 10% of the sum recovered. It was his case that his law firm wrote several letters of demand to the customers and that when the repayment of the debt was not forth coming, he commenced an action in Suit No K/389/2003 on behalf of the Appellant against the said customers of the Appellant.

It was his case that the matter was keenly contested and that he subsequently obtained judgment against the customers of the Appellant, and in favour of the Appellant, in the sum of N112 Million. It was his case that the customers paid the sum of N25 Million in reduction of the judgment sum and they filed a motion for instalmental payment of the balance sum and that the motion was granted and they commenced the instalmental payments and had paid an additional sum of N13 Million.

It was the case of the Respondent that he was entitled to be paid 10% of the N38 Million that had been paid by the customers and that his law firm continued monitoring the instalmental payments of the judgment sum and that the matter was, to the knowledge of the Appellant, being handled by a Counsel in his law office, Felix Jones Osimerha Esq, and that his law office was willing, ready and able to conclude the recovery of the said indebtedness.

It was his case that, to his shock, he received a letter dated in November, 2008 from the Appellant debriefing him on the matter and assigning the brief to Felix Jones Osimerha Esq, who was by then still acting on behalf of his law office, and that this was done to deprive him of his earned fees and that he suffered injury and damages by reason of this action of the Appellant.

The Appellant in response admitted it contracted the legal services of the Respondent for the recovery of the indebtedness of its customers, Alhaji Sabiu Bako and Sabiplast Nig. Ltd, and which was in the sum of N203,593,193.71, as at 30th of April, 2003 and that the fee rate of the Respondent for the brief was 10% of the sum recovered but stated that it subsequently reduced the stated fee rate to 5% of the sum recovered.

The Appellant admitted that a suit in Suit No K/389/03 was indeed commenced on its behalf against its said customers for the recovery of the indebtedness but stated that the Respondent never took part in the said suit and neither did the Respondent take any steps towards realizing the judgment sum.

It was the case of the Appellant that the judgment entered in its favour in Suit No K/389/03 was for the sum of N82,971,565.16 and not N203,593,193.71 and that it had reduced the stated fee of the Respondent for the brief from 10% to 5% by its letter dated the 13th of January, 2004 and that this reduction of fee was accepted by the Respondent, as evidenced by his conduct in a letter dated 8th of November, 2006.