Michael Olatunji Famuyide Vs R.c. Irving And Co. Ltd. (1992)

LawGlobal-Hub Lead Judgment Report

G. KARIBI-WHYTE, J.S.C

This appeal is against an interlocutory decision of the High Court of Lagos State ordering the Appellant as defendant to answer the interrogatories served on him by the Plaintiff. The Court of Appeal, Lagos Division affirmed the order of the High Court.

The facts of the case are quite simple and are not disputed. The Respondent, who is the Plaintiff, is a limited liability company. It carries on business in this country at 4 Keffi Street, Lagos. as Project Development and Finance Consultants, The Appellant who is the Defendant requested the Respondent by letter dated 16th November, 1980, to arrange either a mortgage or a contractor finance for the development of his land situate and lying at 136 Lewis Street, Lagos, into an office block.

By an agreement in writing dated 25th May, 1981, made between the parties, Appellant appointed Respondent as his sole and exclusive project co-ordinator in respect of the development of the said property. Pursuant to this agreement, Respondent held negotiations with Messrs. Coopers and Lybrand who were interested in the development of the property. Respondent obtained quotations for the development of the property and prepared a viability report in respect thereof. The viability report was sent to a number of Respondent’s clients including Messrs. Coopers and Lybrand on the 10th February, 1981. Messrs. Coopers and Lybrand by letter dated 23rd February. 1981 made certain proposals to the Respondent and confirmed their interest in the development of the property. Respondent pleaded that Messrs. Coopers and Lybrand, knew at all material times that the said property belonged to the Appellant. Respondent subsequent to the Agreement of the 25th May, 1981 held negotiations with Messrs. Coopers and Lybrand which resulted in a revised basis for the development of the property and informed Appellant accordingly in a letter dated 21st May, 1981.

By a letter dated June 5, 1981. Messrs. Coopers and Lybrand informed Respondent that they had accepted a more attractive proposal for the development of the property. Respondent came to know in August, 1981 that the offer was through Messrs. Knight. Frank and Rutley and that Appellant had all along been conducting negotiations with Messrs. Coopers and Lybrand through Messrs. Knight, Frank and Rutley, notwithstanding the Agreement of 25th May, 1981.

In a letter dated 7th August, 1981, the Respondent wrote to the Appellant to confirm the Agreement of 25th May, 1981. Respondent claims to have done much work and spent much time with respect to the said Agreement. It is claimed that Appellant is in breach of the said Agreement and intends to continue to breach it unless restrained by court. Respondent will suffer loss or damage of the commissions and fees which the Respondent would otherwise have earned.

The particulars of Damage claimed is as follows:-

Fees in accordance with the 4th Schedule of the said Agreement of 25th May, 1981.

For initial inspection of site plans and

preparation of preliminary feasibility and

viability report at 1% = N30,000.00

Procuration fee at 2% = N60,000.00

For attendance during construction

and certificate of work progress