The Plaintiffs Orpheo Nigeria Limited and Dr. Sama Ekpo Sama (who are Respondents in this appeal) and the Defendants Bassey Edem and Pamol Nigeria Limited (now Appellants) had business relationship. The 2nd Defendant owned a cottage hospital on its plantation which it sold to the 1st Plaintiff. The Hospital became known as “Health Farm Clinic Dr. Sama" and was being run on behalf of the 1st Plaintiff by the 2nd Plaintiff, the Medical Director of the Hospital. By an agreement between the 2nd Defendant and 1st Plaintiff, employees of the former were being treated, for agreed fees, at the Hospital. On the expiration of the agreement the Defendants intimated the Plaintiffs of their intention not to renew it. The 2nd Defendant had by then converted a part of its premises into a clinic and equipped same, for the use of its staff. There was an opening ceremony of this clinic attended by many people, including members of the press. At this opening ceremony the 1st Defendant, who at all times relevant to this action was the Managing Director of the 2nd Defendant, made a statement which the Plaintiffs complained was libellous of them. The full text of the statement was published in "Pamol News" the staff newspaper of the 2nd Defendant. In consequence of this statement the Plaintiffs sued the Defendants claiming N2m. general damages for the libel.

Pleadings were filed and exchanged and the case went to trial on Plaintiffs' statement of claim and Defendants' amended statement of defence. At the trial evidence was led on both sides. After addresses by learned counsel for the parties, the learned trial Judge in a reserved judgment found for the Plaintiffs and entered judgment in their favour in the sum of N400.000.00 as general damages.

Being dissatisfied with this judgment the Defendants appealed to the Court of Appeal which Court dismissed the appeal and affirmed the judgment of the trial Court. The Defendants have now appealed to this Court.