B. O. Lewis V United Bank For Africa Plc (2016)

LAWGLOBAL HUB Lead Judgment Report

MARY UKAEGO PETER-ODILI, J.S.C.

This is an appeal against part of the judgment of the Court of Appeal, Lagos Division delivered on the 22nd of June, 2004 affirming the decision of the High Court of Lagos State entering a summary judgment against the Appellant under Order 11, Rules 1 and 2 of the High Court of Lagos State (Civil Procedure) Rules, 1994.

Dissatisfied With the decision, the Appellant has through a Notice of Appeal filed on the 21st of September, 2004 appealed to this Court.

FACTS

By an Amended Statement of Claim dated 4th January, 2001, the Respondent as Plaintiff sued the Appellant as Defendant in the Lagos Court for among other things the sum of N1,349,671.54 being the total outstanding principal and interest in respect of loans granted to the Appellant by the Respondent, The claim is that a loan of N1,550,000.00 was granted to the Appellant in the course of his employment to purchase a car. The Respondent asserted that monthly deductions were made from the Appellant’s salary to repay the loan and the sum of N1,116,293.15 was outstanding at the time the Appellant’s employment was

1

terminated. Also that an ordinary/personal loan of N300,000.00 was granted to the Appellant in the course of his employment and monthly deductions were being made from his salary to repay the loan and at the time his employment was terminated, the sum of N233,378.39 was outstanding making the outstanding sums total of N1,349,697.54.

The Appellant filed a Statement of Defence and Counter-Claim (See pages 9 – 11 of the record) and the Respondent filed a Defence to counter claim (See pages 12 – 14 of the record). The respondent then filed a summons for judgment under Order 11, Rules 1 and 2 of the High Court of Lagos State (Civil Procedure) Rules 1994, for summary judgment. The terms and conditions of the purported loans are contained in Exhibits B, C, D, E1, E2 and E3 attached to the Respondent’s application.

The Appellant then filed an Affidavit Showing Cause. In the affidavit the appellant raised, among other facts that the car was purchased under a transportation scheme for officers in his cadre and that neither he nor any beneficiary under the scheme was required to make any monetary payments to the Respondent for cars obtained under the transportation

2

scheme and that no deductions were being made from the Appellant’s salary to repay the purported car loan except the sum of N4,363.25 representing the extra amount paid to him over and above his entitlements under the scheme. He tendered Exhibit AA3 his monthly slip to show that no money was being deducted from his salary as alleged in respect of the car loan.

He stated that by agreement, the Respondent had an absolute lien on the car and the respondent did not exercise its absolute lien when his appointment was determined.

With respect to the ordinary/personal loan, he stated that by agreement, the Respondent was deducting monthly payments from his salary but that when the Respondent terminated his employment, the payment of the loan from his salary became impossible of performance thereby frustrating the agreement and discharging him there from. The Appellant has not secured any other employment since leaving the services of the Respondent and the Hyundai Sonata (2.0 litres) car is still in his possession.

The Appellant also claimed damages for wrongful termination because the Respondent terminated his employment without giving him the required