Court orders UBA to compensate firm with over N4million
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 and also averred that 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 in its judgment upholding the ruling of the lower 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 has 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.”
United Bank for Africa, 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 the 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. 17 as general damages against the bank.