In a publication of the Daily Sketch newspaper dated 25th day of November, 1977 at the time when 1st appellant was its editor, it was inter alia written of the respondent as follows: “Ogun State Price Board has announced that the sales of commodities worth N29, 133.68 will take place today at the stores of Kelly Ogunbayo and Sons Ltd No. 2 Ibadan Road, Iperu Remo, near Sagamu and starting at 9.00 am (sic)

The publication was headed in bold letters “PRICE CONTROL TO SELL N29, 000.00 HOARDED BEER”. The respondent wrote to the fist appellant demanding an apology claiming that the said publication complained of was defamatory. That was on 21st day of December, 1977, and by 11th January, 1978 the final reply of the appellants was that the publication was not defamatory as they contended, it was a true reproduction of public announcement by Ogun State price Control Board.

The respondent company felt defamed and sued for damages in the High Court at Sagamu.

At the time of the publication, appellant had not seen any such announcement by the Price Control Board. The respondents indeed had been tried for hoarding beer, but were discharged and acquitted. The appellants pleaded qualified privilege in their defence.

The trial judge found of the plaintiff/respondent on the ground that libel had been proved and awarded N50,000.00 for natural grief and distress and N100,000.00 as general damages.

Appellants appealed to the Court of Appeal which dismissed the appeal and reduced the sum of N100,000 award as general damages to N20,000. It struck out the award for natural grief and distress.

An appeal was launched to the Supreme Court.