3PLR – NEW NIGERIA BANK LTD V. ODIASE
POLICY, PRACTICE AND PUBLISHING, 3PLR, LAW REPORTS
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NEW NIGERIA BANK LTD
V.
ODIASE
COURT OF APPEAL
(BENIN DIVISION)
14TH MAY 1993
CA/B/168/91
3PLR/1993/80 (CA)
OTHER CITATIONS
8 NWLR (PT. 310) 235
BEFORE THEIR LORDSHIPS
OGUNDERE ADOO AND AKPABIO JJ.C.A.
MAIN ISSUES
BANKER AND CUSTOMER RELATIONSHIP: Nature of – How created -Whether the relationship is governed by the principles of simple contract – Qualification of a customer
The respondent (plaintiff at the trial court) said the appellant for damages on the ground that in 1982 the respondent and his mother applied to the Central Bank of Nigeria through the account of one Dr. Aimuwu with the appellant bank for approval for the issue of foreign exchange for the sum of $4,000.00 to enable him continue his study in Turkey. The use of the account of the said Dr. Aimuwu was on the advice of the appellant because the respondent nor his mother had an account with the appellant, and the application must be processed through the account of any existing customer.
The application was processed and forwarded to the Central Bank of Nigeria but no approval was received even after years had lapsed, although the approval was expected within three months. The respondent who was and forced to abandon his study for lack of fund returned home and made enquiries at the appellant’s office. It was then discovered that the Foreign Exchange approval had been granted by the Central Bank of Nigeria, but the appellant used it for the benefit of another person.
Pleadings were exchanged but instead of allowing the matter to go on trial, the appellant filed an application for certain preliminary parts of law to be determined:- that the plaintiff/respondent has no locus standi in that there was no priority of contract between the parties and that the action is not maintainable in Law.
The learned trial judge dismissed the application. The appellant appealed to the Court of Appeal contending principally that the statement of claim did not disclose banker/customer relationship and thereafter the respondent lacked the standing to sue.
HELD (Unanimously dismissing the Appeal) inter alia.
- The relation of Banker to Customer is one contact which is basic to all transactions, with special contracts such as borrowing or lending which arise only as they are brought into being by the express acts or implied intentions of the parties.
- Generally a customer is someone who has an account with a bank, or without having an account the relationship of banker and customer exists.
- The length or duration of time in relationship between Commercial Bank is no longer an essential element. A person is a customer even if the bank performs a Casual Service, such as cashing a cheque for a person introduced by one of the customers, as well as a person who has an account of his own at the bank.
