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J obi Trade Investment Ltd v. Olubisi

JOBI TRADE INVESTMENT LTD

MR. OGUNJOBI OLUSEGUN

     V

ADELEKE OLUBISI

( Trading under the name of Qualum Building Product Enterprises)

                   COURT OF APPEAL

     EKITI DIVISION

JIMI OLUKAYODE BADA JCA (Presided and Read the Lead Judgment)

MASSOUD A. OREDOLA JCA

UCHECHUKWU ONYEMENAM JCA

CA/EK/37/2012

WEDNESDAY, 28 FEBRUARY 2013

APPEAL - Appellate court - Attitude of to decision of lower court which is right

CONTRACT - Breach of contract - Nature of - Damages therein - Quantum of

CONTRACT - Nature thereof

COURT -  Appellate court - Attitude of to decision of lower court which is right

PRACTICE AND PROCEDURE - Appellate court - Attitude of to decision of lower court which is right

PRACTICE AND PROCEDURE - Counterclaim - What it is

WORDS AND PHRASES - Counterclaim - What it is

Issues:

  1. Whether the lower court was right in declaring the nonpayment of the sum of  N470,000.00 (Four hundred and seventy thousand naira) as wrong, unreasonable and unlawful.
  2. Whether the lower court was right in directing the  appellant to pay the sum of  N470,000.00  (Four hundred and seventy thousand naira) and 5% interest therein in favour of the respondents being the balance of the payment for the contract.
  3. Whether the lower court was right in dismissing the 2nd appellant’s counter claim.

Facts:

The respondent was contracted by the 2nd appellant on behalf of the 1 st appellant to carry out  the roofing of the theatre and children ward at the State Hospital,  Ado Ekiti. Parties agreed on a contract sum of  N2,175,000.00 ( two million, one hundred and seventy-five  thousand naira ). At the conclusion of the contract, the appellants paid the sum of N1,705,000.00 (One million, seven hundred and  five thousand naira), leaving an outstanding sum of  N470,000.00 (four hundred and seventy thousand naira).

Following its persistent demands for the outstanding sum which did not yield results, the respondent instituted an action before the High Court of Ekiti State, wherein he sought the order of court directing the appellants to pay the sum outstanding on the contract sum and interest thereon at 21% per annum from the date of the indebtedness and thereafter, at 10% till the judgment debt  is fully liquidated.

The trial court considered the suit, struck out the 2nd appellant’s counter-claim and his name from the suit, and also found for the respondent as claimed. The court also awarded interest at the rate of  5% per annum thereon.

Dissatisfied, the appellants appealed to the Court of Appeal.