WHETHER THE JURISDICTION OF THE FEDERAL HIGH COURT PERTAINS TO CASES OF SIMPLE CONTRACTS

CASE TITLE: ELIPSE INTL EXPLORATION LTD & ANOR v. MUWA FUQA TIN FIELDS LTD & ANOR (2021) LPELR-55146(CA)

JUDGMENT DATE: 23RD JULY, 2021

PRACTICE AREA: CONTRACT

LEAD JUDGMENT: ITA GEORGE MBABA, J.C.A.

SUMMARY OF JUDGMENT:

INTRODUCTION

This appeal borders on contract.

FACTS

This appeal is against the decision of the Plateau State High Court in Suit No. PLD/J535/2019, delivered on 1st July, 2020 by Hon. Justice N.L. Musa.

The facts of the case are that sometime in November, 2017, the Respondents and Appellants had entered into a simple contract of supply of lead oxide (solid material) of 2 trucks at the sum of N5,100,000. After the agreement was signed, the Respondents paid (by installments) a total sum of N2,950,000 to the Bank Account of the 2nd Appellant and yet, the Appellants failed and refused to supply the materials and would not refund the money paid. The 2nd Appellant was the Managing Director of the 1st Appellant and operated the said account wherein the N2,950,000.00 was paid in. After some reasonable time, agreed for the supply of the materials and Appellants could not supply same, the Respondents wrote letters of demand for a refund of the money, which Appellants did not reply to. The Respondents filed an action at the High Court in a case of simple contract brought under the undefended list, claiming the sum of N2,950,000.00 being money for part payment received by the Appellants from the Respondents for the contract of supply of lead oxide material which the Appellants did not supply to the Respondents and have refused to refund the Respondents’ money; 30% pre-judgment interest on the sum of N2,950,000 from January, 2018 till judgment is delivered and 5% post-judgment rate until the whole sum is finally liquidated, having used the Respondents’ money since January, 2018 till date.

The Appellants in a response filed a preliminary objection and a notice of intention to defend the suit which was both dismissed by the High Court.

The High Court heard the case and entered judgment for the Respondents as per their claims.

Dissatisfied, the Appellants appealed to the Court of Appeal.

ISSUES FOR DETERMINATION

The Court determined the appeal on the following issues

(1) Whether the trial Court had the jurisdiction to entertain the suit, having earlier dismissed it, and in view of Section 251(1)(n) of the Constitution of the Federal Republic of Nigeria 1999 (as amended).

(2) Whether the trial Court was right to grant the relief sought by the Respondents, including pre- and post-interests, as it granted.

(3) Whether the 1st Appellant was a juristic person, capable of being sued and bound by the judgment of the Court.

DECISION/HELD

In the final analysis, the Court of Appeal held that the appeal lacked merit and it was dismissed.

RATIOS:

• JUDGMENT AND ORDER – FUNCTUS OFFICIO: Whether a Court can be functus officio to relist a suit that was dismissed for want of diligent prosecution
• JUDGMENT AND ORDER – AWARD OF INTEREST: Instance(s) when a pre-judgment interest will be awarded
• JURISDICTION – JURISDICTION OF THE FEDERAL HIGH COURT: Exclusive jurisdiction of the Federal High Court to determine civil matters pertaining to mines and minerals
• JURISDICTION – JURISDICTION OF THE FEDERAL HIGH COURT: Whether the jurisdiction of the Federal High Court pertains to cases of simple contracts.