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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? SPECIAL AND GENERAL

What then is damages generally? Damages are money claimed by or ordered to be paid to, a person as compensation for loss or injury. In other words, damages are the sum of money which a person wronged is entitled to receive from the wrongdoer as compensation for the wrong. General damages are damages that the law presumes follow, from the type of wrong complained of and do not need to be specifically claimed. While special damages are damages that are alleged to have been sustained in the circumstances of a particular wrong. To be awardable, special damages must be specifically claimed and proved.

– ARIWOOLA J.S.C. Union Bank v. Chimaeze (2014)

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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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SPECIAL DAMAGES VS GENERAL DAMAGES

It is no longer a matter for contention that the principle in regard to the assessment and award of special damages is different from that of general damages: see Ijebu-Ode Local Govemment v.Adedeji Balogun & Co (1991) 1NWLR(Pt.166) 136 at p. 158; Eseigbe v.Agholor (1993) 9 NWLR (Pt.316) 128 at p. 145. In the former, damages are specially pleaded, strictly proved and accordingly awarded; in the latter, they are averred, if necessary under specific heads of claim, presumed in law to be the direct and natural consequence of the act complained of and awarded at large as a jury question.

— Uwaifo, JSC. Rockonoh v. NTP (2001) – SC.71/1995

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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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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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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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