The defendant was/is an insurance company. The plaintiff insured with the defendant a Peugeot 504 saloon car No. LA 9574 for N40, 000.00. While the car was so insured, it was destroyed by fire. The plaintiff duly informed the defendant. The defendant initially showed signs that it would settle the plaintiff’s claim. It claimed the wreck of the car and sold it for N1, 000.00 Later, however, the defendant refused to settle. It had discovered that the car insured with it by the plaintiff was stolen from the place where D.W.I’s had parked it. The car belonged to D.W.I. The plaintiff in the circumstances sued asking for an indemnity of N40, 000.000

The parties filed and exchanged pleadings. On conclusion of trial the trial court found in favour of the respondent and awarded N39, 000.00 against the appellant.

Aggrieved with the decision, the appellant appealed to the Court of Appeal.