TWO CIRCUMSTANCES WHERE INTEREST MAY BE AWARDED

Interest may be awarded in a case in two distinct circumstances, namely: (i) As of right: and (ii) Where there is a power conferred by statute to do so, in exercise of the Court’s discretion. Interest may be claimed as a right where it is contemplated by the agreement between the parties, or under a mercantile custom, or under a principle of equity such as breach of a fiduciary relationship. Where interest is being claimed as a matter of right, the proper practice is to claim entitlement to it on the writ and plead facts which show such an entitlement in the statement of claim. See Per NNAEMEKA-AGU, JSC in EKWUNIFE V. WAYNE WEST AFRICA LTD (1989) LPELR-1104(SC) (PP. 33-42, PARAS. C-A).

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

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CHANGE IN THE RATE OF INTEREST MUST BE COMMUNICATED

Any change in the rate of interest should be brought to the attention of the customer by the banker as a condition for the banker to change the agreed rate of interest. [Okolo v. U.B.N.Ltd (1998) 2 NWLR (Pt. 539) 618 referred to]

– L.A. Ayanlere v. Federal Mortgage Bank of Nig. Ltd. (1998) – CA/K/186/96

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SUPREME COURT JUDICIAL NOTICE ON INTEREST RATE

The matter is not made easy by their claiming that they agreed on the interest rate of 13% when there was no such clause in the deed of legal mortgage and when it is a well-known fact which this court takes judicial notice of that interest rates are dependent of the policy on the Central Bank. No interest rate is static. It is not immutable. It varies depending on the nature of Government policy which follows the state of the economy.

– Pats-Acholonu, J.S.C. Pinder v. North (2004)

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REVERSIONARY INTEREST CANNOT BE SOLD WHEN ANOTHER IS IN POSSESSION

It appears to me to be the law that a reversioner, such as the 2nd respondent, cannot sell his reversionary interest, that is his particular estate, as fee simple while another person is in possession of the land. He must first either first recover possession from that other person in possession or sell his reversionary interest subject to that person’s possession. For what the reversioner has in such a case is the freehold reversion subject to the possession in another person and not a fee simple absolute free from incumberances. It must be noted that interests in land, whether legal or equitable, are carved out as it were on a plane of time. Any holder of a particular interest or estate who attempts to sell more than the quantum of his estate will be caught by the maxim: nemo dat quod non habet (no one can give or sell what he has not).

– Nnaemeka-agu, JSC. Ude v. Nwara (1993)

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HOW TO ARRIVE AT RATE OF INTEREST IN COMMERCIAL CASES

In TATE and LYLE FOOD AND DISTRIBUTION LTD. V. GREATER LONDON CONOI AND ANOTHER. 1981 3 All E.R. 716 Forbes J on how to arrive at the rate of interest in Commercial cases held that one must not look at the profit which the Defendant wrongfully made out of the money he withheld but at the cost to the plaintiff of being deprived of the money which he should have had. In my view interest in commercial cases of this nature is not awarded against the Defendant as a punitive measure for having kept the plaintiff out of his money but as an attempt to achieve restitution in intergrum.

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INTEREST WILL BE AWARDED WHERE PROVED EVEN IF NOT CLAIMED

In fact, where interest is not even claimed on the Writ, but the facts are pleaded as did the Appellant in its amended Statement of Claim and evidence was given which showed entitlement thereto, the Court may award interest as a general rule. See EKWUNIFE V. WAYNE (W/A) LTD (1989) 5 NWLR (PT.122) 428.

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

WHERE INTEREST IS NOT FOUNDED ON ANY RATIONALE, APPEAL COURT MAY SET IT ASIDE

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TWO CIRCUMSTANCES WHERE INTEREST MAY BE AWARDED

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CHANGE IN THE RATE OF INTEREST MUST BE COMMUNICATED

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SUPREME COURT JUDICIAL NOTICE ON INTEREST RATE

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REVERSIONARY INTEREST CANNOT BE SOLD WHEN ANOTHER IS IN POSSESSION

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HOW TO ARRIVE AT RATE OF INTEREST IN COMMERCIAL CASES

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INTEREST WILL BE AWARDED WHERE PROVED EVEN IF NOT CLAIMED

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