Supreme Court Orders Stanbic IBTC Bank To Pay Customer N2.5billion Damages

The Supreme Court of Nigeria has affirmed the judgement of a
Federal High Court sitting in Lagos, Southwest Nigeria that ordered
Stanbic IBTC bank Plc to pay one of its customers, Mr Patrick
Akinkuotu and his company Long Term Global Capital Limited the sum
of N2.5 billion for breach of contract.

The judgement of the apex court arose from the judgement of a
Federal High Court in Lagos, who had earlier awarded the N2.5
billion as damages against the bank.

The case of Akinkuotu and his company against Stanbic IBTC bank
Plc as presented by their lawyer, Chief Felix Fagbohungbe SAN was
that, the bank granted overdraft facility of N600 million to Long
Term Capital Ltd on the 11th of April, 2007.

The bank also granted two additional facilities of N400 million
and N250 million to Akinkuotu on the 11th of May, 2007 and 17th of
July, 2007 respectively. The facilities were for a term of 365 days
with an option of rollover among other terms.

Upon application by Akinkuotu, the facilities granted them were
merged and same were secured with shares held by them in various
companies. The bank, upon instruction received via e-mail sold
28,745,400 units of GTB PLC shares held by Akinkuotu and his
company at the sum of N267,775,799.21.

The Plaintiffs became aggrieved and contended that the proceed
of the shares sold by the bank was very low. They also contended
that they have liquidated the overdraft facilities granted them by
Stanbic IBTC bank Plc, consequently they sued the bank for breach
of contract and claimed damages for loss of business
opportunity.

Fagbohungbe, SAN on his part, argued that the case of his client
was that of gross negligence and unprofessionally selling the
shares separately owned by Mr Akinkuotu and his company at
significantly lower and unauthorized prices whilst purportedly
acting on Mr Akinkuotu’s unsigned e-mail alone between him and the
officer of the bank Mr.N.Udoh while ignoring entirely the specific
terms of the sale mandate officially issued by his clients

The trial court while entering judgement in their favour awarded
them N2.5 billion damages, and said “The law stipulates that court
should discountenance an unsigned document as its contents cannot
override a duly executed mandate in the circumstances”

Dissatisfied with the judgement of the court, Stanbic IBTC bank
Plc appealed the judgement, however, its case was dismissed by the
Court of Appeal.

Thereafter, the bank took its case to Supreme Court, the court
after appraising the facts and submission of Fagbohungbe appearing
with Barrister Abayomi Adeniran as presented on behalf of Akinkuotu
and his company and O. Ayanlaja, SAN appearing with Tayo Oyetibo,
SAN for Stanbic IBTC Plc, in a judgment delivered by five panel
members of judges dismissed the appeal of the bank for lacking in
merit and awarded cost of N50,000 in favour of Akinkuotu and his
company and against Stanbic IBTC Bank Plc .