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O.O.M.F Ltd Vs. NACB Ltd (2008) CLR 4(m) (SC)

Judgement delivered on April 11th 2008

Brief

  • Counter claim
  • Record of appeal
  • Counsel withdrawal of representation

Facts

From the pleadings of the parties, it is very obvious that there was a loan/credit facility transaction between the Plaintiffs and the 1st Defendant which later resulted in a dispute between the parties following the failure of the Plaintiffs to repay same. However, at the stage in which judgment was entered by the trial Court in the counter claim against the Appellants, evidence had not been called. It is also very important to note, at this stage, that at the time judgment was so entered, there is no evidence on record to show that the Respondents motion on notice to file a Statement of Defence out of time and to deem what had been filed and served as properly filed and served, which was fixed for hearing in December, 1995 was ever heard and granted on or before the 23rd day of January, 1996 when judgment was entered on the said counter claim on the ground that the Appellants failed and or neglected to file any defence thereto despite service of same on them.

Before the judgment was entered, S. O. ITODO Esq., of counsel for the Plaintiffs applied to the Court to be discharged from the case on the ground that his clients had ceased to further instruct him on the matter, to which application learned counsel for the Defendants, OMENGALA Esq., did not oppose as a result of which the learned trial Judge ruled, (inter alia, as follows:-

  • "............. I believe Mr. Itodo that he had made several abortive efforts to get his clients interested in the due prosecution of the suit. In the circumstance the suit is hereby struck out. This order shall forthwith be served on the Plaintiffs.''

From the above, it is very clear that what started as an application of counsel to be relieved of his obligation to further appear and conduct his professional duties to his clients ended up with the striking out of the suit. The Plaintiffs were not present in Court on that day but there is an order by the Court that they be notified of the striking out of the suit.

The proceeding of that day became more dramatic when soon after making the above order, the following recordings were made by the learned trial Judge:

  • "Omengala: We have a counter claim. No defence was filed to the counter claim which we claim N825,046.66 as at 30/9/95 and interest thereon at 13.5% P.A. from 1/10/95 until the judgment is satisfied
  • By Order 27 Rule 2(1) of this Court, we are entitled to judgment since there is no defence to the counter claim. We ask for the judgment in the counter claim as per our statement of defence.
  • By Order Court: Mr Itodo, what do you say?
  • By Order Itodo: I am out.
  • JUDGMENT

    • In the counter claim the Defendants claim that the Plaintiffs are/were indebted to the 1st Defendant in the sum of N825.046.66. That is the state of account as at 30/9/95. the Defendants also claim, an order directing the Plaintiffs to pay interest at 13.5% P.A. from 1/10/95 until the judgment debt is fully and finally liquidated. There is no defence to the counter claim whereupon Mr. Omengala invoking Order 27 Rule... 1) of the Rules of this Court to ask for judgment in the amount plus interest at 13.5% P.A........judgment is hereby entered in favour o fthe 1st Defendant for the sum of N825.046.66 plus interest at 13.5% per annum commencing from 1/10/95 until the judgment debt or part shall have been fully and finally paid. The judgment shall forthwith be served on the Plaintiffs."

    The Appellants were not happy with the above judgment of the Court and appealed to the Court of Appeal, which as stated earlier in this judgment, dismissed their appeal resulting in the further appeal to this Court

Issues

  • Were the learned Justices of the Court of Appeal in their majority decision...
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