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DAMAGES FOR BREACH OF CONTRACT IS BASED ON RESTITUTIO IN INTEGRUM

Dictum

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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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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TRESPASS: SPECIAL VS GENERAL DAMAGES

In an action for damages for special damages for trespass, special dam-ages must be pleaded and strictly proved, the value pleaded being normally a reflection of the prevailing market prices. The vital difference between a claim for compensation under the Land Use Act and compensation in trespass Is that general damages is only claimable in trespass.

— Obaseki, JSC. Foreign Finance Corp. v Lagos State Devt. & Pty. Corp. & Ors. (1991) – SC. 9/1988

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DAMAGES – WHEN APPELLATE COURT WILL INTERFERE WITH DAMAGES AWARDED

Damages are awarded at the discretion of the trial Court, and so an appeal Court is reluctant to interfere with how the trial Court exercises its discretion unless: a) The exercise is tainted within illegality or substantial irregularity. b) If it is in the interest of justice of interfere. c) The discretion is wrongly exercised. See C.B.N vs. Okojie (supra) and University of Lagos vs. Aigoro (1985) 1 NWLR (part 1) 43 and Salu Vs Egeibon (1994) 6 NWLR (part 349) 23. An appellate Court would also interfere when it is satisfied That: a) The trial Court acted under a mistake of law; or b) The trial Court acted in disregard to some principles of law; or c) The trial Court acted under a misapprehension of facts; or d) The trial Court took into account irrelevant matters or failed to take into account relevant maters, or e) Injustice would result if the appellate Court does not interfere, or f) The amount awarded is ether ridiculously low or ridiculously high, that it must have been a wholly erroneous estimate of the damages – British Airways vs. Atoyebi (2014) 13 NWLR (part 1424) 253 at 265 266; African Newspapers (Nig.) Plc vs. Useni (2015) 3 NWLR (part 1447) 464 at 475 476 and Guardian Newspapers Ltd vs. Ajeh (2011) 10 NWLR (part 1256) 574.

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APPELLATE COURT WILL NOT DISTURB DAMAGES OF LOWER COURT SIMPLY BECAUSE IT WOULD HAVE AWARDED A DIFFERENT FIGURE

Although an appellate Court admittedly can disturb an award of damages if such award is excessively high or unreasonably low, it is settled that a Court of Appeal will not disturb an award of damages made by the lower Court merely because it would have come to a different figure if it had heard the case itself. See Per NNAMANI, JSC in DUYILE & ANOR V. KELLY OGUNBAYO & SONS LTD (1988) LPELR-975(SC) (P. 17, PARAS. D-G).

— U.M. Abba Aji, JSC. Cappa v NDIC (2021) – SC.147/2006

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COURT OF APPEAL CAN ASSESS DAMAGES

As such is the position, there is now no need for this court or the Court of Appeal to look at an issue of damages as if it were a sacred cow reserved for the court of trial. The correct approach ought to be that unless an issue of credibility of witnesses as to damages arises in the proceedings, the appellate court ought, on entering or affirming a judgment in favour of the plaintiff, to assess and award damages to which he is entitled.

– Pats-Acholonu, JSC. C & C Constr. v. Okhai (2003) – SC.8/1999

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GENERAL VS SPECIAL DAMAGES

It is the law that general damages such as the law will presume to be the natural or probable consequence of the defendant’s act need not be specifically pleaded. It arises by inference of law and need not therefore be proved by evidence and may be averred generally. On the, other hand, special damage is such loss as the law will not presume to be the consequence of the defendant’s act but which depends in part, on the special circumstances of the case. Special damages must be specifically pleaded and strictly proved.

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

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