Wema Bank Plc V. Olotu & Anor (2022)

LAWGLOBAL HUB Lead Judgment Report

TIJJANI ABUBAKAR, J.S.C. 

This appeal is an off-shoot of the decision of the Court of Appeal Ibadan Division delivered on the 2nd day of December, 2015, affirming the decision of the Oyo State High Court, wherein the trial High Court granted the reliefs prayed for by the Respondent in part and awarded N20,000,000 as damages and further sum of N234,275.79.

The Respondents as plaintiffs in suit No. 1/417/2005 commenced by a Writ of Summons in High Court of Justice Ibadan, where the following reliefs were sought for against the Appellant, who was the defendant at the trial Court.;

I. “A declaration that the 1st defendant’s purported termination of the two contracts agreements, both dated 20th December, respectively, with the plaintiffs is wrongful, improper and constitute breaches and/or repudiation of its obligations to the plaintiff.

ALTERNATIVELY

A DECLARATION that the 1st defendant is in breach of its obligation to implement the terms of the arbitral award of Adegbola Adeniyi, Esq. dated 8th December, 2004 in the matter of an arbitral reference between the plaintiffs and the defendants.

II.

AN ORDER directing the defendants to pay the plaintiffs forthwith consequential damages for breach of contract/repudiation of contractual and other obligations under the terms of the two ROT contracts in respect of Ramat and Olori Hostels of 20th December, 2021, as the arbitral award of Adegbola Adeniyi, Esq dated 8th December, 2004 between the plaintiffs and 1st defendant

(a) Loss of anticipated profit from the benefit of the two ROT Contracts of 20th December 2001 for the term often (10) years – N200,000,000.00

(b) Damages being loss of sums invested in the execution of the two ROT Contracts of 20th December 2001 for total failure or want of consideration – N32,000,000.00

Two Hundred and Thirty Two Million Naira N232,000,000.00

III. Interest on the sum of N232 million from 8th December, 2004 at 19% per annum being commercial banking lending rate till the date of the judgment and thereafter at the rate of 10% per annum until that part of the judgment debt is liquidated

IV. A DECLARATION that the plaintiffs do not owe, are not indebted, or howsoever liable to the 2nd defendant either in the sum of N16,248,989.21 (Sixteen million, two hundred and forty eight thousand, nine hundred and eighty nine Naira and twenty one Kobo) as at 1st February, 2005 or at all.

V. A DECLARATION that the 2nd defendant is liable to the plaintiffs to the sum of N4,944,535.74 (Four million nine hundred and forty-four thousand, five hundred and thirty-five Naira and seventy-four Kobo) being money had and received for lack/total failure of consideration in the 2nd defendant’s maintenance of account No. 02644 and loan account in the names of the plaintiffs at their Polytechnic Ibadan branch.