The Appellants were the Plaintiffs before the Federal High Court, Lagos where they claimed against the Respondents, as Defendants, the sum of US$103,050,87, being damages "or loss or non-delivery of the voyage from Tallin to Lagos in or about May, 1993, sustained by reason of the Defendants' breach of contract and /or duty and/or negligence in and about the carriage thereof".

As made manifest in the claim, the Plaintiffs had a contract for carriage of goods with the Defendants. The goods consisted of 658 boxes of Electric Water heaters. According to Plaintiffs, the Defendants failed to deliver the goods.

In its judgment, the trial court found that there was no evidence of tampering with containers in transit and in the custody of the respondent. It consequently dismissed the appellants' suit.

Appellants, dissatisfied with the decision appealed to the Court of Appeal.