Appeal Court orders UBA to pay over N4.5m damages to firm

The Federal Court of Appeal sitting in Ibadan has upheld the
judgment of Oyo State High Court and ordered United Bank for Africa
Plc to pay N2.7million as general damages to Siegner Sabithos
Nigeria Limited over negligence and breach of banker and customer
relationship.

The court, in a unanimous judgment delivered by Justice Haruna
Simon Tsammani, dismissed the appeal filed by United Bank for
Africa.

It averred the lower court had the right to award both special
and general damages to the appellant for breach of contract.

The High Court had earlier in its judgment ordered the appellant
United Bank for Africa (UBA) to pay Siegner Sabithos Nigeria
Limited a sum of N216, 555. 17 difference between exchange rate
within the transaction period, the time the money was deducted and
remitted.

The Court also ordered UBA to pay Siegner Sabithos a sum of N2,
716, 555, 17k as general damages suffered by the respondents’
foreign business and goodwill.

The appellant Court directed the appellant, United Bank for
Africa PLC, to pay to the respondent the sum of N2, 716, 555.17k
being general damages suffered by the respondent as a result of the
negligence handling of the respondent’s foreign business and bank
account resulting into loss of business, contract and goodwill with
foreign and local business partners and beneficiaries.

Siegener Sabithos Nigeria Limited had dragged Dugbe, Ibadan
branch of United Bank for Africa PLC before the court on the
account of negligence and a breach of the banker and customer
relationship.

United Bank for Africa failed to remit £10, 673 to the City of
London College, London for the payment of school fees of seven of
the plaintiff’s students until 17 days after the amount had been
deducted from the Siegner Sabithos Nigeria Limited’s account.

In a writ of summon, the claimant had sought a

“Declaration that the delay by the defendant in remitting the
sum of £10, 673 to the City of London College for the payment of
school fees of seven of its students until 17 clear days after the
said amount was deducted from the plaintiff’s account.”

UBA in its arguments explained that transaction between it and
the respondent was to be executed as quickly as possible, however,
said that the delay in remitting the money to the beneficiary was a
result of procedural and administrative constraints which must
observed as required by the Money Laundering (Prohibition) Act.

It also explained that the delay in transferring the funds was
further caused by the change of name of the Chief Executive Officer
of the Siegener Sabithos Nigeria Limited.

But, the Court of Appeal dismissed UBA appeal for lack of merit
and ordered the bank to pay the damages.

The court also over-ruled the preliminary objection of the
appellant and awarded N216, 555. 17 as exchange rate between
transaction period of when the money deducted from Siegener’s
account and remitted to the City of London College and N2, 716,
555. 17as general damages against the bank.

Related