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CaseLaw

Worldgate Building Society Ltd Vs. Merril Guaranty S & L Ltd (2004) CLR 6(k) (CA)

Judgement delivered on June 9th 2004

Brief

  • Customer/banker relationship
  • S.230(1) (d) 0f Const (suspension & Modification) Decree 107
  • State High Court jurisdiction on financial matters

Facts

The appellant sued the respondents in the High Court of Lagos State claiming following reliefs:

  • i
    "The sum of N553, 013.69 (Five hundred and fifty three thousand, thirteen naira, sixty nine kobo) being the principal sum and inter¬est outstanding on the amount placed in the 1st defendant's high yield Certificate as at 31st December, 1993 which sum the defendant has refused and/or neglected to pay despite repeated demands.
  • ii
    Interest on the said sum of N553, 013.69 (Five hundred and fifty three thousand, thirteen naira, sixty nine kobo) at the rate of 21% per annum from 1st January, 1994 until the whole amount is to¬tally liquidated."

The writ of summons was accompanied by a statement of claim. On the 26th of September 1996, the respondent filed a notice of preliminary objection challenging the jurisdiction of Lagos High Court to entertain the suit on the ground that the two parties to the suit were financial institutions and the Federal High Court had exclusive jurisdiction to hearing the dispute between them by virtue of Section 230(1) (d) of the 1979 Constitution as amended by Section 1 (3) the Constitution (Suspension and Modification) Decree No.107 of 1993.

The preliminary objection was argued by both sides and the learned trial judge gave a ruling on the 7th of January, 1997 upholding the...

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