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CaseLaw

Societe Bancaire (Nig) V. De Lluc (2004) CLR 12(d) (SC)

Judgement delivered on December 10th 2004

Brief

  • S.251(1)(d) 1999 Constitution
  • Fed and State High Court jurisdiction
  • Banking

Facts

The Respondent (the Plaintiff) entered into a business relationship with one Francis Philips whereby the latter promised to secure a contract for the Respondent worth $55m for the construction of the Central Bank of Nigeria between, 1992/94. The Plaintiff/Respondent claimed that she was induced to part with the total sum of $500,000 which was later paid into the Appellant's Bank.

The Respondent heard nothing else from the said Francis Philips and to her greatest chargin and shock she realised too late that she had been made to part with her money under false pretences as it turned out. The money was paid into the joint account of Anthony Jiwueze and Francis Philips in the Appellant's Bank. The Respondent averred that the Appellants were negligent in opening an account for Mr. Philips and Jiwueze without keeping to or observing the laid down standard of care and procedure in the opening and operation of an account, and that the bank did not behave in a manner expected to be followed by a prudent Bank by so readily allowing Mr. Philips and Jiwueze to open an account.

At the High Court the Appellant raised a preliminary objection to the fact that the State High Court has no jurisdiction stating that the subject matter of the action is a banking matter but not being one of Bank and customer relationship. The High Court per Akinsanya J. after listening to the arguments of both counsel, dismissed the suit for lack of jurisdiction, whereupon the Appellant appealed to the Court of Appeal. The Appellate Court found merit in the appeal and allowed it and set aside the ruling of Akinsanya J. holding that the State High Court is competent to adjudicate on the claims on this matter.

Issues

Whether the Court of Appeal was right in holding that the High Court of Lagos...

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