CaseLaw
Standard Eng. V. NBCI (2006) CLR 3(a) (SC)
Judgement delivered on March 10th 2006
Brief
Facts
The 1st Plaintiff/Appellant carries out the business of servicing/repairs of Automobiles and heavy duty trucks. The Defendant/Respondent is a financial institution.
In February 1987, an agreement was reached between the parties to the effect that a loan of N1,620,000.00 or its equivalent in foreign currency would be provided to enable the Appellants finance an Automobile Servicing Workshop. It was agreed that part of the said loan amounting to £226,000.00 (later reviewed to 245,860.32 pounds sterling) was to be made available in foreign exchange for the purpose of opening a letter of credit in favour of any company nominated by the Appellants to import the machinery required by the Appellants.
Appellants with the consent of the Respondents nominated a London based Company to supply the machinery while Midland Bank of London was nominated as the confirming Bank.
The Appellants were notified of efforts been made by the suppliers to supply substandard equipment and this led to them directing the Respondent not to pay or have any dealings with the nominated suppliers. The Appellants sought to substitute the supplier with a new supplier, C.J Services Ltd, but the Respondent refused. The refusal resulted in an action instituted by the Appellants in which declaration, specific performance and damages were claimed.
Appellants succeeded in the High Court. Respondent’s appeal to the Court-of Appeal was allowed while the Appellants Cross-Appeal was dismissed by the Court of Appeal. The Appellants farther appealed to the Supreme Court.