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CaseLaw

UBN Plc V. Chimaeze (2014) CLR 4(h) (SC)

Judgement delivered on April 11th 2014

Brief

  • Perverse Decision – Nature of
  • Special Damages – Proof of and duty on claimant
  • Award of Damages
  • Cheque – Entitlement to damages where dishonoured

Facts

The appellant was a defendant in the action initiated by the respondent at the trial Court in Edo State High Court, claiming the sum of thirty million Naira (N30m) special and general damages for the wrongful dishonour of the cheque he drew on his account with the appellant in favour of Lever Brothers Nigeria Plc. It was the respondent's case that he had enough credit in his bank account to accommodate the cheque he had drawn. He was a general trader and a major distributor for the Lever Brothers Nigeria Plc.

In defence, the appellant had alleged fraud on the part of the respondent and had contended that the respondent had no credit enough in his bank account to accommodate the amount on the cheque drawn in favour of the Lever Brothers Plc, hence the cheque was dishonoured. Indeed, the appellant gave a general denial to the respondent's averments in his pleadings.

The trial Court had in my view, rightly found in favour of the respondent against the appellant and held that the respondent's cheque was wrongly dishonoured by the appellant. The sum of two hundred and fifty thousand Naira (N250,000) and one hundred thousand Naira (N100,000) special and general damages respectively, were awarded in favour of the respondent.

Dissatisfaction with the decision of the trial Court led to the appeal to the Benin Division of the Court of Appeal, hereinafter referred to as the lower Court, by the appellant to which the respondent cross appealed on the damages awarded.

The appellant's appeal was found lacking in merit and was dismissed in its entirety while the cross appeal succeeded and was allowed in part. The sum of one hundred thousand Naira (N100,000) awarded as general damages was increased to one million Naira (N1million). The respondent/cross appellant has prayed for further increase of the damages awarded in his favour.

Issues

  • 1
    Whether or not the court below was right in affirming the award of the sum...
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