In 1984, the Cross River State Government acquired land(s) belonging to the Ekagha Ekong village Atiba Road, Calabar for the purpose of constructing a Navy Barracks and Workshop.

The Government directed that all those affected by the revocation should submit their claims for compensation. In response to this, a group appointed Rev. Otu Udofia, a principal partner in the firm of Agwarangbo Otu Udofia & Partners a firm of estate surveyors and valuers, as their agent to conduct the enumeration and evaluation of their farm crops and houses affected and negotiate for adequate compensation with the government.

Another group appointed the respondent - Winston Nakande & Company - as their agent. Thereafter, a list of those entitled to compensation was drawn up. In order to quicken the compensation payments, Rev. Otu Udofia appointed another agent in Lagos, viz Faja Alufohai & Co. to follow up the claims with the Ministry of Defence. Rev. Otu-Udofia unfortunately died which then prompted the two groups of claimants to appoint the respondent as agent to demand and receive the compensation money.

In September, 1992 a cheque was released covering the total compensation to Dr. P.A.C. Agwarangbo, the 1st appellant – the surviving partner of the firm of Agwarangbo-Otu Udofia. Prior to payment, the ministry sought clarification from the Governor of Cross River State as to the real claimants and their proper agent to collect the cheque. The Governor confirmed that the proper representative/agent was the firm of Agwaramgbo-Otu-Udofia and Partners.

The Ministry of Defence nevertheless obtained an indemnity from the surviving partner Dr. P.A.C. Agwarangbo, the 1st appellant above covering the total compensation. The cheque was collected and paid in to a UBN account of Agwaramgbo-Otu-Udofia. However, the respondent filed an originating summon claiming that he is the proper person to act for the claimants and that the respondents be advised to transfer the compensation paid to him for disbursement to the two groups of claimants. The 4th and 5th appellants were on 14/12/92 joined as representatives of the whole claimants of Ekagha Ekong Village. And on 23/6/95, the 6th respondent one of the widows of Rev. Udofia who claimed to be the administratix of his estate was on her application also joined in the suit.

The trial court entered judgment in favour of the respondent. Dissatisfied with the judgment, the appellants appealed to the Court of Appeal.