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CaseLaw

Laluco (Nig.) Ltd V. Kariam (1993) CLR 3 (D) (CA)

Brief

  • Repudiation of contract by one party,
  • Award of damages,
  • Special damages

Facts

The defendants/appellants were at the trial court sued jointly and severally for the sum of N82,500 being special and general damages arising from a breach of contract of employment between the parties. The sum also included money claimed by the plaintiff/respondent to have been advanced to the 2nd defendant/appellant for the purchase of furniture machines and raw materials which amount had not been refunded to the plaintiff/respondent by the appellants. Pleadings were exchanged by the parties. After a long interval occasioned by interlocutory applications, the case proceeded to trial. The plaintiff/respondent gave evidence in support of his claim and closed his case thereafter.

In his evidence the respondent who was employed as a Production Manager in the employment of 1st appellant which had the 2nd appellant as its Managing Director tendered Exhibit 1 as document governing his contract of employment. He testified that his salary of N900 was being irregularly paid and that even though he worked from 16/6/80 to 5/6/81 he was only paid his salary en bloc on 27/7/81. He contended that this was why he repudiated the contract and fixed its breach to the appellants. Under cross examination the respondent admitted that he did not work for 18 months or the agreed period and that the appellants never asked him to leave but he left as his salary was not being paid as agreed. The respondent thereafter closed its case. Thereafter, the 2nd appellant testified for himself and on behalf of the 1st appellant. He confirmed employing the respondent in terms of Exhibit 1. He testified that on one Friday in June 1981, the respondent drove out all the workers and closed the factory for one year taking with him all documents and receipts. He confirmed giving money to respondent to purchase both the machines and raw materials even where receipts were made in his name, save 2 machines purchased with respondent's money. According to him respondent was asked to produce the receipts for reimbursement but to date he refused. The appellants called 3 witnesses who confirmed and corroborated the evidence of the 2nd appellant. At the end of his evidence both counsel to the parties addressed the court.

At the end of the trial, the learned trial Judge found the defendants/appellants liable for the breach and awarded damages. In addition, the court also found that the plaintiff proved his claim relating to the purchase of machines and spare parts and ordered the defendants/appellants to pay a total of N30,162.32k to the plaintiff/respondent.

Dissatisfied with this judgment both defendant/appellants have appealed to this Honourable Court. The plaintiff/respondent has also cross-appealed on question of special damages awarded by the learned trial Judge.

Issues

  • 1.
    Who breached the contract of employment in this suit?...
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