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CaseLaw

Meril Guaranty S & L Ltd Vs. Worldgate Building Society Ltd (2012) CLR 3(m) (SC)

Judgement delivered on March 30th 2012
SC.178/2005

Brief

  • Jurisdiction
  • Pleadings
  • Section 230(1)(d) 1979 Constitution
  • Section 251(1)(d) 1979 Constitution

Facts

In an action instituted in the High Court, Lagos State, the respondent who was then the plaintiff claimed against the appellants jointly and severally the following reliefs:-

  • i
    "The sum of N553,013.69 being the principal sum and interest outstanding on the amount placed in the 1st defendant's high yield Certificate as at 31st December, 1993, which sum the defendant has refused and/or neglected to pay despite repeated demands.
  • ii
    Interest on the said sum of N553,013.69 at the rate of 21% per annum from 1st January, 1994, until the whole amount is totally liquidated."

Briefly, the plaintiff's case is that it is a limited liability company, while the 1st defendant is a finance company and the 2nd defendant is its Managing Director, who executed a personal guarantee in favour of the plaintiff on its investment of N500,000 on the defendants' merit high yield certificate at an interest rate of 8.5% per month for 90 days to fall due on 24th August, 1993, and the defendant issued a postdated Guarantee Trust Bank cheque to be presented on 24th August, 1993. The defendant however failed to redeem the plaintiff's investment despite several entreaties, hence it instituted this action against the defendants. After filing the plaintiff's statement of claim, the defendant filed a notice of preliminary objection, the ground of which reads in the following:-

  • "The Lagos State Court lacks jurisdiction to entertain this suit by virtue of the provision of Section 230 (l)(d) of the Constitution of the Federal Republic of Nigeria 1979 as amended by Section 1 (3) of the Constitution (Suspension and Modification) Decree No. 107 of 1993."

The trial court delivered its ruling in favour of the defendants/applicants by allowing the objection and struck out the action.

Dissatisfied with the ruling of the trial court, the plaintiff appealed to the Court of Appeal. In its considered judgment, the Court of Appeal held the view that the trial court was wrong in declining jurisdiction. Hence the appeal was allowed and the ruling of the trial court was consequently set aside while the respondents' preliminary objection was dismissed. The case was remitted back to the Chief Judge of Lagos State for reassignment to yet another Judge other than the Judge of the trial court that first heard it.

Being dissatisfied with the judgment of the Court of Appeal, the defendants/respondents appealed to the Supreme Court.

Issues

Whether the Lagos High Court had jurisdiction to determine civil causes and...

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