Bank Of Industry Ltd. V. Obeya (2021)

LAWGLOBAL HUB Lead Judgment Report

HELEN MORONKEJI OGUNWUMIJU, J.S.C. 

This is an appeal against the judgment of the Court of Appeal Abuja Division delivered 14th August 2020 Coram: Peter Olabisi Ige, Emmanuel Akomaye Agim, Yargatar Byenchi Nimpar (JJCA) which set aside the decision of the High Court of the Federal Capital Territory delivered 16th November, 2017 by Hon, Justice S. B. Belgore.

The Respondent as Plaintiff at trial is a legal practitioner while the Appellant is a development finance institution substantially owned by the Federal Government. The Respondent commenced this suit by a Writ of Summons under the Undefended List against the Appellant. His claims against the Appellant are as follows:

(a) The sum of N55,245,625.00 (Fifty-Five Million, Two Hundred and Forty-Five Thousand, Six Hundred and Twenty-Five Naira only) representing half of the sum in the invoice dated 10th March, 2016 being balance of professional fees due to Plaintiff under Part 1 of the Schedule to the Legal Practitioners (Remuneration for Legal Documentation and other Land Matters) Order 1991 made pursuant to the Legal Practitioners Act, CAP L 11 LFN 2004 for services rendered by virtue of the instructions contained in the letter of instruction dated April 5th, 2011.

(b) 10% interest on the said sum of N55,245,625.00 (Fifty-Five Million, Two Hundred and Forty-Five Thousand, Six Hundred and Twenty-Five Naira only) from 21st April, 2016 till the day of judgment in accordance with the Legal Practitioners Act; and

(c) 10 % interest on the said sum N55,245,625.00 (Fifty-Five Million, Two Hundred and Forty-Five Thousand, Six Hundred and Twenty-Five Naira only) together with interest as in (b) above from the date of judgment till the sum is liquidated.

In response, the Appellant filed a Memorandum of Conditional Appearance and a Notice of Preliminary Objection on the grounds that the service of the Writ of Summons issued on the office of the Respondent at Abuja is not valid, the venue not being the registered office of the Appellant and that the trial Court had no jurisdiction to entertain the subject matter of the suit against the Appellant. The trial Court upheld the Preliminary Objection and struck out the case.

​The Respondent being dissatisfied with the decision filed an appeal to the Court below for the determination of the issues whether the service of the Writ of Summons issued on the office of the Respondent at Abuja was improper, whether the trial Court was bereft of jurisdiction to entertain an action for recovery of professional fees against the Appellant, the latter being an agency of the Federal Government, whether the Court of Appeal can grant the reliefs sought by the Respondent as no notice of intention to defend was filed by the Appellant. The Court below allowed the appeal and set aside the decision of the trial Court. It granted the claim of the Respondent except the pre judgment interest.

The Appellant herein is dissatisfied with the judgment of the Court below and has appealed to this Court vide a Notice of Appeal containing four (4) grounds filed on 15th September, 2020.

The Appellant’s counsel in its brief settled by Aliyu Saiki Esq., formulated two issues for determination as follows:

a. Whether the Honourable lower Court was right in setting aside the decision of the High Court of the Federal Capital Territory, Abuja which declined jurisdiction to entertain the suit on the grounds that the originating Court process was served by the Respondent on the Appellant at its branch office in Abuja instead of its Headquarters in Lagos and the fact that the Appellant being an agency of the Federal Government of Nigeria, the Federal High Court ought to assume jurisdiction in circumstance of the case.

b. Whether it was proper for the Honourable lower Court to exercise original jurisdiction in favour of the Respondent in respect of his claim which the Honourable lower Court did not heat the basis of lack of jurisdiction.

The Respondent in his brief also formulated three issues for determination which are essentially similar to those submitted by the Appellant even though grouped and couched differently. I will adopt the Appellant’s issues to determine the appeal.

ISSUE ONE