CaseLaw
UBN Vs. Emole (2001) CLR 12(e) (SC)
Judgement delivered on December 14th 2004
EDITORS NOTE
The Court of Appeal decision in this case is also reported in COMPULAW with citation (1991) CLR 7(h) (CA)
Brief
Facts
The Plaintiff/Respondent was at all times relevant to this appeal a customer of the Defendant/Appellant Bank. He maintained a current account at the Factory Road, Aba branch of the Defendant Bank. Sometimes in November 1984, he requested the Bank to open some letters of credit in favour of his overseas supplies of goods. One of such letters was LC No.72/84 for 92,391.78 (ninety- nine thousand, three hundred and ninety-one pounds, seventy-eight pence). At the request of the Bank plaintiff deposited a sum of N99,793.15 (ninety- nine thousand seven hundred and ninety-three Naira, fifteen Kobo) as the full cover for the said letter of credit, based on the exchange rate prevalent on 6th November 1984. The letter of credit was opened by the bank. In April 1985 Plaintiff went to the Aba branch office of the defendant Bank to collect the shipping documents relating to the letter of credit. These he was told that due to foreign exchange fluctuations at the time the Defendants Bank's correspondent bank cabled instructions that the supplier had been paid he is to pay an extra amount of N16,224.29 (sixteen thousand two hundred and twenty-four Naira twenty -nine Kobo) before he could collect the shipping documents. Plaintiff paid the said sum, cleared the goods and sold them in 1985. That could have been the end of the matter. But it was not. On 11/12/86,31/12/86 and 21/7/88, the Defendant Bank debited Plaintiff's account with the sums of N77,578.18; N25,727.19 and N42,138.98 respectively which the Defendant claimed were foreign exchange fluctuations arising form the letter of credit transaction in respect of the LC No. 72/84. The Plaintiff protested to the Defendant against these debits.
Sometimes in 1985 the Defendant Bank granted the Plaintiff an overdraft facility of N140,000.00 in addition to a further sum of N200.000,00 facility granted to cover documentary credits. The Plaintiff executed a deed of mortgage in favour of the Defendant Bank over his property situate at 15C Chief Paul Nkoro Avenue, Aba, as security for the facilities granted him.
It was Plaintiffs complaint that the Defendant Bank took advantage of the mortgage to inundate his account with arbitrary debits resulting in the account being paralysed. As it was the only business account he had with any bank, his business suffered.
Plaintiff brought this action claiming declaratory and injunctive reliefs along with general damages of N500, 000.00 for negligence.
The learned trial judge found for the Plaintiff/Respondent. And awarded General damages of N200,000.
The Appellant's appeal was dismissed.
The Appellant further appealed to the Supreme Court.
Issues
Whether, having found that the Respondent did not prove the...