Emostrade limited opened an account with 1st appellant. The account was previously known as Emostarde. The sole signatory to the account was the chairman of the respondent company who also maintained an account in his own name with the 1st appellant. In 1983, he noticed some withdrawals from his account and other accounts through forged cheques and demanded that the 2nd appellant (Branch manager of 1st appellant) furnish him with the statements of accounts and photocopies of the cheques with which the withdrawals were made as well as funding his accounts back with the sums fraudulently withdrawn. The 1st and 2nd appellants refused to oblige him.

Respondent instituted an action against the appellants for breach of contract and also claimed special and general damages totaling N5,000,000.00.

The trial court agreed that the appellants breached their contract with the respondent as their customer and awarded damages assessed at N2,500,000.00 against them. Aggrieved by the judgment the appellants appealed to the Court of Appeal.