Woodgrant Ltd. & Anor. V. Skye Bank Plc. (2011)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

CLARA BATA OGUNBIYI, J.C.A, (Delivering the Leading Judgment)

The appellants herein have appealed against the ruling of the High Court of Lagos State dated 14th of April, 2008 delivered by Honourable Justice R.T.B. Adebiyi which granted the Reliefs sought in the motion for summary judgment brought pursuant to order II of the High court of Lagos State civil procedure Rules 2004. The Ruling of the High Court is contained at pages 175 – 178 of the Record of Appeal while the motion for summary judgment is contained at pages 78 – 119 of the Record of Appeal. The Ruling appealed against had granted the following reliefs to the Respondent:-

(a) The sum of N48,792,787,96k (Forty eight million, seven hundred and ninety two thousand seven hundred and eighty seven Naira ninety six kobo) due to the claimant as at 31st of December, 2006 on the credit facility granted by the claimant to the 1st Defendant repayment of which was guaranteed by the 2nd and 3rd and 4th Defendants.

(b) Interest on the said sum at the rate of 22.5% from 31st of December 2006 until date of judgment.

(c) 10% interest on the judgment sum from the date of Judgment until the judgment sum is paid

(d) An order of sale of the property known as plot H III Road 44 Victoria Garden City Lekki Lagos which property was used by the defendants in securing the credit facility granted by the claimant to the 1st defendant.

Being dissatisfied with the said ruling, aforesaid, the 1st and 2nd Defendants/appellants filed a Notice of Appeal dated 23rd June 2008 after having withdrawn an earlier Notice of Appeal dated 15th April, 2008. The subsisting Notice of Appeal dated 23rd June 2008 was filed on the same day and contained at pages 224 to 232 of the Record of Appeal. The Notice contains twelve grounds of Appeal and with the appellants having abandoned grounds 2, 3, and 4 the said grounds are accordingly struck out.

The brief of the claimant’s case at the trial court as set out at paragraphs 16, 18 and 19 of the statement of claim is contained at page 5 of the record of appeal. With the reliefs sought for at paragraph 19 of the statement of claim having been granted as reproduced earlier, I would set out paragraphs 16 and 18 of the said statement of claim which state as follows:-

“16. The amount due on the credit facility as at 31st August 2006 is N48,792,787.96 (Forty eight million seven hundred and ninety two thousand, seven hundred and eighty-seven Naira ninety-six kobo) due to the claimant as at 31st December 2006 the credit facility granted by the claimant to the 1st defendant repayment of which was guaranteed by the 2nd, 3rd and 4th defendants. The claimant shall rely on the statement of Account of the 1st defendant at the trial of this action.

17. …………………………………………….
18. The defendants have refused and/or neglected to pay the outstanding sum of N49,792,797.96 (Forty eight million seven hundred and ninety two thousand, seven hundred and eighty-seven Naira, ninety-six kobo) due to the claimant as at 31st December 2006.”

In their response to the foregoing state of claim, the 1st and 2nd Defendants/appellants had thus to say at paragraph 9 of their Statement of Defence at page 146 of the record of appeal in total denial of the claimant/respondent’s claim.

“9. Paragraphs 16, 18 and 19 of the statement of claim are denied. The claimant is put to the strictest proof of the allegation that N48.792,787.96 was due to the claimant from the Defendant or any of them whether as at the 31st December 2006 or at ail. Further, the 1st Defendant denies the statement of Account alleged in paragraph 16 of the statement of claim and put the claimant to the applicability and each and every content thereof”.

The appeal was entered in this court pursuant to an order of court for an extension of time within which to compile record sought and obtained on the 26th January 10. In accordance with the practice and Rules of Court briefs were filed and exchanged by parties. While the appellants brief was dated and filed on 2nd February 2010 that of the respondent was, also by the order of court, deemed filed on the 22nd April, 2010.

On the 7th February, 2011 at the hearing of the appeal, the learned counsel Messrs A. Adewumi and M.O. Abudu representing the appellants and respondent respectively adopted their respective briefs of arguments. While the appellants’ counsel on the one hand urged that the appeal be allowed, the respondent on the other hand submitted in favour of the dismissal of the appeal.

From the nine surviving grounds of appeal, the four issues formulated on behalf of the appellants are as follows:-