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CaseLaw

Ishola-Williams Vs. Hammond projects Ltd (1988) CLR 2(o) (SC)

Judgement delivered on February 26th 1988

Brief

  • Leases
  • Covenants
  • Breach of covenants
  • Remedies for breach

Facts

One Mr. J. Ishola Williams by Deed of Lease dated 28th March, 1977 granted a lease of his landed property at No. 15 Okesuna Street to the defendant company T.A Hammond Projects Ltd. for a term of 60 years commencing from the date of the said lease at an annual rental of N2,500.00. In the lease the defendant covenanted as follows:

  • i.
    To pay the rent reserved
  • ii.
    To develop the Demised Premises with an amount of not less than N750,000.00k and that the new Building should be called “Eso Ola House”
  • iii.
    To pay and discharge all water and Township rates and
  • iv.
    Not to assign sublet or part with the possession of the Demised Premises or any part thereof without the written consent of the Lessor but that the Lessor’s consent would not be necessary after the Demised Premises had been developed.

By 1982 the property has not been developed by the defendant. So the plaintiff felt the defendant was already in breach of its covenant to develop the land. The plaintiff also felt he had reasons to believe that there were other breaches by the defendant particularly the covenant by it not to assign, sublet or part with the possession of the demised premises or any part thereof without the written consent of the plaintiff. So the plaintiff instructed his Solicitors Messrs. E A Omo Odulana & Co. to give the defendant notice of the breaches complained of in compliance with the provisions of Section 14(1) of the Conveyancing Act 1881 a statute of general application in force in England on 1st January, 1900 and which is admittedly applicable in Lagos State.

The notice of breach relied upon in this case is that dated 5th July, 1982 tendered as exhibit B at the trial court.

On the 23rd day of the service of the notice upon the respondents. The appellant took out a writ of summons for the breach of covenant, and for forfeiture and for judgment.

Some 23 days after the date of the notice of breach, the plaintiff being of the opinion that he had received no satisfaction for the defendant in respect of the breaches complained of took, out a writ of summons in the High Court of Lagos State, in the Lagos Judicial Division against the defendant company

The Learned Trial Judge found there has been a breach of the covenant in question and that a lapse of time between 1977 and 1983 a more than reasonable one to allow for the development of the property to commence if there is any genuine desire or ability so to do.

The defendant was not satisfied with the judgment. So it appealed against it to the Court of Appeal, Lagos Division. The majority decision by Nnaemeka Agu, J.C.A. (as he then was) and Uthman Mohammed J.C.A., Kutigi, J.C.A. dissenting, allowed the defendant’s appeal.

The plaintiff further appealed to the Supreme Court.

Issues

  • 1.
    Whether Exhibit B the Notice of Breach of Covenant dated 5th July, 1982...
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