The appellant Company employed the respondent, who started work with the appellant on 1/8/1978. Initially the employment was on probation. After one year his appointment, the conditions of service of the respondent were enhanced, covering various allowances apart from his basic salary. His duty station was Calabar as Store Manager.

On 6/6/84, the respondent was handed a letter, the contents of which turned out to be termination of the appointment of the respondent with effect from 15/6/84. The respondent wrote some representations, but he did not receive any favourable response. He then instituted an action against the appellant in 1986 for "wrongful dismissal" and claimed N500,000.00 as special and general damages, which include his salaries, rent allowance, leave allowance, retirement scheme, Christmas bonus, productivity bonus, gratuity - all to compulsory retirement in the year 2002, being the year he would have compulsorily retired at the age of 55 had he continued in the employment.

Pleadings were ordered and were accordingly filed, exchanged and served. The respondent gave evidence in support of his claims and called no other witness. The appellant called two witnesses in its defence.

The appellant however maintained that the respondent's appointment was terminated in accordance with the terms and conditions of the contract of employment between the two parties.

The learned trial Judge entered judgment in favour of the respondent in the sum of N8,539.18 as special damages and N30,000.00 as general damages. He also awarded N1,500.00 costs against the appellant.

Dissatisfied, the appellant appealed to the Court of Appeal