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DAMAGES – DAMAGES FOLLOW EVENT

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Dictum

Damages are the sum of money which a person who has been wronged is entitled to receive from the wrong doer as compensation for loss or injury, hence, no loss or injury, no award of damages. It is clear that the award of damages follows events. See, MUSTAPHA v. ABUBAKAR & ORS. (2022) LPELR 41830 (CA), FBN v. OJO (2022) LPELR-57503 (CA), KEYSTONE BANK LTD. v. ABDULGAFARU YUSUF & CO. LTD (2021) LPELR-55646 (CA), CRC CREDIT BUREAU LTD v. LONGTERM GLOBAL CAPITAL LTD & ANOR (2021) LPELR 55574 (CA), MRS OLUFUMILAYO ESTHER & ANOR v. TOPNOTCH PROPERTIES LIMITED (2017).

— A.O. Obaseki-Adejumo, JCA. FRSC v Ehikaam (2023) – CA/AS/276/2019

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WHAT IS DAMAGES

Damages have been defined as: “that pecuniary compensation which law awards to a person for the injury he has sustained by reason of the act or default of another whether that act or default is a breach of contract or tort”, see Iyere v. B.F.F. M Ltd (2008) 18 NWLR (Pt. 1119) 300 at 345, per Muhammad, JSC; Umudje v. SPDCN (1975) 841 SC 155 at 162; Neka B.B.B. Mfg. Co. Ltd. v. A.C.B. Ltd (2004) 2 NWLR (Pt.. 858) 521.

— O.F. Ogbuinya JCA. Stanbic IBTC Bank Plc v. Longterm Global Cap. Ltd. & Ors. (September 20 2021, ca/l/1093/2017)

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RATIONALE FOR DAMAGES AWARD

The primary object of an award of damages is to compensate the plaintiff for the harm done to him or a possible secondary object is to punish the defendant for his conduct in inflicting that harm. The rationale behind the compensatory theory for the award of damages is found in the maxim restitutio in integrum. In other words, to restore the injured party to the position he or she was in prior to the injury.

– Kekere-Ekun JSC. British v. Atoyebi (2014) – SC.332/2010

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WHEN APPELLATE COURT WILL INTERFERE IN DAMAGES AWARDED

An award of damages is within the discretionary powers of the court. An appellate court would not usually interfere with a previous award unless satisfied (a) that the trial court acted under a mistake of law; or (b) where the trial court acted in disregard of some principle of law; or (c) where it acted under a misapprehension of facts; or (d) where it has taken into account irrelevant matters or failed to take into account relevant matters; or (e) where injustice would result if the appellate court does not interfere; or (f) where the amount awarded is either ridiculously low or ridiculously high that it must have been a wholly erroneous estimate of the damage.

– Kekere-Ekun JSC. British v. Atoyebi (2014) – SC.332/2010

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DAMAGES FOR SUFFERING, PAIN, ANXIETY SHOULD BE ASSESSED ON REASONABLE BASIS

Sellers, L. J. in Wise v. Kaye (1962) 1 All ER 257 and which states thus: “It has always been accepted that physical injury and the personal experience of pain, and also of suffering, including worry and anxiety for the future and apprehension of an operation, or of nursing or deprivation of activity owing to disablement or embarrassment or limitation felt by reason of disfigurement, cannot in any true sense be measured in money… Damages for such injuries, originally almost invariably assessed by juries, were said to be ‘at large’, and had to be assessed on a reasonable and fair basis between party and party. There can be no restitution for the loss of a limb or loss of faculty but the law requires adequate compensation to be assessed.”

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DAMAGES FOR BREACH OF CONTRACT IS BASED ON RESTITUTIO IN INTEGRUM

In awarding damages in an action founded on breach of contract, the rule to be applied is restitutio in integrum that is, in so far as the damages are not too remote, the plaintiff shall be restored as far as money can do it, to the position in which he would have been if the breach had not occurred.

– ADEKEYE, J.S.C. Cameroon v. Otutuizu (2011) – SC.217/2004

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INSTANCES WHEN APPEAL COURT WILL INTERFERE WITH DAMAGES GRANTED BY TRIAL COURT

The appellant’s learned senior counsel had submitted that it had shown reasons for this Court to interfere with the award of damages. An appellate Court does not usually interfere with award of damages unless: (a) the trial Court acted under a mistake of law; or (b) where the trial Court acted in disregard of some principles of law: or (c) where the trial Court acted under misapprehension of facts; or (d) where it has taken into account irrelevant matters or failed to take into account relevant matters; or (e) where injustice would result if the appellate Court does not interfere; or (f) where the amount awarded is ridiculously low or high that it must have been a wholly erroneous estimate of the damages, see SPDCN v. Tiebo VII (supra); Cameroon Airlines v. Otutuizu (supra); British Airways v. Atoyebi (2014) 13 NWLR (Pt. 1424) 253; Agu v. General Oil Ltd. (2015) 17 NWLR (Pt. 1488) 327.

— O.F. Ogbuinya JCA. Stanbic IBTC Bank Plc v. Longterm Global Cap. Ltd. & Ors. (September 20 2021, ca/l/1093/2017)

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