Appeal Court upholds N7m punitive award against bank THE Appeal of Court, Owerridivision has dismissed the appeal filed by First Bank (Nigeria) Plc and upheld the judgment of a lower court which awarded N7m damages in favour of a medical doctor who suffered some damages as a result of the Bank’s actionable negligence. Justice N. Okoronkwo of Imo State High Court had earlier found the bank guilty of ‘actionable negligence’ in the way and manner it handled transaction involving the doctor. Dr. Arinze Magnus Anyagham had in 2010 dragged the Bank before the trial court alleging negligence of duty on the part of the bank. Represented by his counsel, Emeka Ozoani, Anyagham had told the lower court that he was a medical doctor engaged by the Federal Medical Centre, Owerri to undergo a Residency Programme for a period during which time he was expected to prepare for, sit and pass a Primary Fellowship Examination conducted by the West African College of Surgeons (WCOS) as a condition for his continued employment by the Federal Medical Centre. According to him, candidates seeking to participate in the examination were expected to pay subscription or examination fee of N14,000 into (WCOS) current account operated by First Bank. He said on January 25, 2006, he paid the above stated sum into WCOS account number 3162010038711 maintained by the bank as his registration fee for the April 2006 examination and was issued with a deposit slip in line with usual banking practices. Anyagham further contended that at the examination centre in April 2006, he was barred from writing the exam “because the WCOS has no proof of my payment”. The medical doctor said that on the advice of some WCOS officials, he used the same payment slip to apply for the exams fixed for October 2006. He said he had to first request the bank to re-issue him with another payment slip in respect of the same payment. Anyagham further contended that on June 21, 2006, WCOS via a letter sought clarification from him concerning the question of his payment for the examination scheduled for October 2006. He said a week to the examination and while checking on the website of WCOS, he discovered that his name was not shortlisted amongst those expected to take the exam. He said though he wrote the exam after strenuous efforts made at the venue of the exam to procure funds from by-standers, but that before he could write enough to make him pass, the order to stop was made having wasted enormous time soliciting for fund. At the release of the result of exam, he expectedly failed. He said his employer, Federal Medical Centre, on account of the conditions of service, terminated his employment. WCOS thereafter sought clarification from the bank. It was until November 3, 2006 that appellant wrote to the WCOS to acknowledge that respondent paid the examination fee. He had therefore claimed N49, 982.00 as special damages, the refund of N14, 000.00 paid into the said account and N200million as general damages. The lower court found First Bank liable and held that, “the failure of the plaintiff to take the examination of April, 2006 is a major setback for the plaintiff as a young medical doctor just climbing the ladder of his professional career and this was occasioned by negligence of the defendant in making the requisite entry.” The judge said: “As I indicated earlier on the remoteness of damage, I cannot place reliance of (sic) the misfortune of the plaintiff in relation to the October 2006 examination occasioned by the plaintiff (sic) being inept on the matter in issue. Notwithstanding this damage to the plaintiff brought about by the defendant’s negligence can only be presumed but no doubt enormous. “I shall and do hereby award general damages of N7million to the plaintiff for negligence of the defendant and resultant damages. Cost of N20, 000 is also awarded to the plaintiff.” However, dissatisfied with the decision of the lower court, First Bank approached the appellate court insisted that the lower court erred in law when it held that it was negligent by non-remittance of Dr. Anyagham’s payment to the college. The bank also insisted that the lower court erred by awarding N7million to the medical doctor. However justices of Court of Appeal including Justice Raphael Chikwe Agbo (presiding), Justice Peter Ige and Justice Frederick O. Oho, in their unanimous decision agreed entirely with the court below. According to them, it is elementary or rather commonsensical to observe in the circumstances of this case that payment into a designated account such as the one provided to the general members of the Nigerian Medical Association which had the names of other medical doctors completely written out but clearly omitting that of Dr. Anyagham shows negligence on the part of First Bank. “I am in agreement with the learned trial judge in his findings at page 94 lines 14 to 21 of the printed records of appeal where he concluded that by omitting to include the name of Dr. Anyagham in Exhibit “L” is indicative of negligence on the part of the bank. The decision of the lower court was upheld in its entirety. The appellate court also awarded a cost of N50, 000.00 only as cost against First Bank”, the lead judgment declared.
Posted on: Tue, 09 Dec 2014 07:27:55 +0000
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