chief s.p.a. ajibade judgment of 27th nov. 2017 · the 2 nd plaintiff dr. b.a.m. ajibade (san)...
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IN THE HIGH COURT OF JUSTICE FEDERAL CAPITAL TERRITORY
IN THE ABUJA JUDICIAL DIVISION
HOLDEN AT MAITAMA – ABUJA
BEFORE HIS LORDSHIP: JUSTICE SALISU GARBA
COURT CLERKS: JIMOH I. SALAWU & OTHERS
COURT NUMBER: HIGH COURT TWO (2)
CASE NUMBER: FCT/HC/CV/1411/2013
DATE: 27TH NOVEMBER, 2017
BETWEEN:
CHIEF S.P.A. AJIBADE
DR. B.A.M. AJIBADE, SAN
(Trading under the name and Style - PLAINTIFFS
(S.P.A. AJIBADE & CO.)
AND
1. POWER HOLDING CO. NIG. LTD
2. NIG. ELECTRICITY LIABILITY - DEFENDANTS
MANAGEMENT COMPANY LTD
Parties absent.
Bolaji Gabari (Mrs) appearing with Ayodele Adeniyi (Mrs) for the
Plaintiff.
Emeka Mozie for the 1st Defendant.
Uche Uwazuruonye appearing with Esther Egoche (Miss) for the
2nd Defendant.
J U D G M E N T
By a writ of summons dated 7/1/2013, the Plaintiffs instituted this
suit against the Defendants and by an amended statement of
claim dated 22/3/2016, the Plaintiff claim against the Defendants
jointly and severally as follows:
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1. A Declaration that the 1st and 2nd Defendants are jointly and
severally liable to pay to the Plaintiffs any sums found due
and outstanding from the 1st Defendant to the Plaintiffs.
2. The sum of N30,492,616.61 (Thirty Million, Four Hundred and
Ninety Two Thousand, Six Hundred and Sixteen Naira, Sixty
One Kobo) being outstanding professional fees, VAT and
expenses due from the 1st Defendants to the Plaintiffs which
the 1st Defendant has refused to pay.
3. Interest on the said sum owed to the Plaintiffs at the rate of
21% (Twenty One Percent) per annum from 9th November
2012 up till the date judgment is granted and at the rate of
10% (Ten percent) per annum till final liquidation of the
judgment debt.
4. Cost of instituting this action.
In prove of this claim, the Plaintiffs filed a 46-paragraph amended
statement of claim, a 25-paragraph Plaintiff’s consequential
amended reply to 2nd Defendant’s amended statement of
defence; the said amended reply is dated 14/5/15 and called two
witnesses.
The 2nd Plaintiff Dr. B.A.M. Ajibade (SAN) testified as the PW1. In his
evidence-in-chief, he adopted a 47-paragraph witness statement
on oath dated 7/1/13 and a 49-paragraph Further additional
witness statement on oath dated 14/5/15 as his evidence. The
two PW1’s statement on oath is accordingly adopted as forming
part of this judgment.
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The gist of the Plaintiff’s case is that by a letter dated 7/4/2009, the
1st Defendant instructed them to defend it and other persons in
Suit No. FAC/L/CS/206/2009 instituted against them by the Lagos
State Government.
Upon the Plaintiff’s acceptance, a negotiation was made and it
was agreed that the Plaintiff’s professional fees would be the sum
of N16 Million exclusive of VAT and out of pocket expenses and
the 1st Defendant made a part payment of the sum of N10 Million,
leaving the sum of N6 Million plus VAT and accumulated out of
pocket expenses of N1,080,266.61 outstanding.
It is also the case of the Plaintiffs that the 1st Defendant further
instructed them for representation in Appeal No. CA/L/335/2010
and in the Arbitral Proceedings between it and the Lagos
Statement Government.
The PW1 avers in paragraph 16 of statement on oath of 7/1/13
that the agreed professional fees for conducting the 1st
Defendant’s defence at the Arbitral Tribunal would be the sum of
N30 Million, excluding out of pocket expenses; that the 1st
Defendant made a part payment of the sum of N24 Million
leaving the sum of N6 Million outstanding as the balance for
professional fees and N18,600.00 as out of pocket expenses yet to
be paid.
It is the testimony of PW1 that the 1st Defendant did again
instructed the Plaintiff to represent it in Suit No. M/367/2012 before
the Lagos State High Court vide a letter dated 23/5/12. The
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professional fees was agreed to be N20 Million, but the 1st
Defendant advised that it would only be willing to recommend
about 50 – 60% of the professional fees of the N20 Million.
In paragraph 28, PW1’s statement on oath under consideration,
he stated that the 1st Defendant being dissatisfied with the
decision of the Lagos State High Court in Suit No. M/367/2012
instructed the Plaintiff to file an appeal on its behalf against the
decision. The Plaintiffs made an offer of N20 Million to prosecute
the said appeal, by a letter dated 10/7/2012. The 1st Defendant
accepted the said offer but advised that it would only be willing
to recommend payment of the sum of N13,500,000.00 as
professional fees in respect of the appeal.
It is the evidence of PW1 that yet again the 1st Defendant
instructed the Plaintiffs to institute a fresh suit on its behalf before
the F.H.C. against Lagos State Government in Suit No.
FHC/L/CS/741/2012. The Plaintiffs made an offer of N20 Million to
prosecute the case which was agreed to by the 1st Defendant.
However, the issue of payment of fees and VAT would be
discussed at a later date.
In paragraph 35, the PW1 stated that at a meeting called by the
1st Defendant in Abuja on 8/8/12, the Plaintiffs received oral
instructions from the 1st Defendant’s Legal Department that the
Hon. Minister of Power had instructed that the law firm of Paul
Usoro & Co be appointed to jointly represent the 1st Defendant in
all its pending suits with the Lagos State Government.
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As a result of the above oral instruction, the Plaintiffs made
available all necessary court processes and documents to Paul
Usoro & Co and attend several meetings jointly with Legal
Practitioners from Paul Usoru & Co.
It is the evidence of PW1 in paragraph 38 that the 1st Defendant
by a letter dated 31/8/12 the 1st Defendant informed the Plaintiffs
that it has debrief the Plaintiffs from representing the 1st Defendant
in all the pending suits with the Lagos State Government and
further requested that the Plaintiffs should forward all their
outstanding bills and invoices with respect to these suits to it for
settlement.
The PW1 also stated that in forwarding their invoices for settlement
as requested by the 1st Defendant, the Plaintiffs on their own
violation applied substantial discounts to the fees due for
representing the 1st Defendant’s interest in the cases they
handled; that the amount due and outstanding to the Plaintiffs
from 1st Defendant is N94,292,161.61 inclusive of VAT and out of
pocket expenses.
In paragraph 46, the PW1 stated that the Plaintiffs claim against
the 1st Defendant is one of the stranded liabilities the 2nd
Defendant will inherit, if the 1st Defendant is dissolved before the
conclusion of this suit.
As stated earlier in this judgment, the PW1 also adopted a 49-
paragraph Further additional witness on oath dated 14/5/15.
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The gist of the said testimony is that there was no agreement
between the Plaintiff and the 1st Defendant that the fees agreed
upon for the conduct of the defence in the suit would only be
paid if the suit pursued a particular cause or pattern or lasted for a
specific period. The fees agreed upon were professional fees for
handling the matter, net of expenses and the plaintiffs provided
the services bargained for.
That since it was the 1st Defendant that chooses to debrief the
Plaintiffs and thus prevent them from conducting the case with
respect to arbitration to conclusion, it cannot rely on this non
conduct to deprive the plaintiff of the fees that had been agreed
for the services rendered.
In paragraph 17 of the said additional statement of PW1, he
stated that the 1st Defendant accepted the terms of engagement
by its letter of 10/7/12 and recommended the sum of N13,500,000
as the plaintiff’s professional fees. The Defendants cannot seek to
evade payment for these services on the basis that it required the
approval of the Attorney General of the Federation.
It is the evidence of PW1 in paragraph 26 that the question of
taxation of the Plaintiff’s bill of charges does not arise as there was
a binding contract between the parties in which the Plaintiff’s fees
had been agreed; that at no time did the Plaintiffs abandon the
1st Defendant’s matters as they were debriefed in all the matters
regarding to 1st Defendant and the Lagos State Government
wherein they were representing the interest of the 1st Defendant
as clearly stated in the 1st Defendant’s letter of 31/8/12.
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In the cause of PW1’s evidence-in-chief, the following documents
were admitted in evidence:
1. Copy of the Certificate of Registration – Exhibit A
2. Letter dated 7/4/09 – Exhibit B.
3. Letter dated 3/7/09 – Exhibit C.
4. Letter dated 22/3/10 – Exhibit D.
5. Copy of letter dated 7/4/10 – Exhibit E.
6. Letter dated 21/4/10 – Exhibit F.
7. Copy of letter dated 10/5/10 – Exhibit G.
8. Letter dated 6/10/11 – Exhibit H.
9. Letter dated 23/5/12 – Exhibit I.
10. Letter dated 23/5/12 – Exhibit J.
11. Letter dated 14/6/12 – Exhibit K.
12. Letter dated 6/8/12 – Exhibit L.
13. Letter dated 2/7/12 – Exhibit M.
14. Letter dated 10/7/12 – Exhibit N.
15. Letter dated 28/6/12 – Exhibit O.
16. Letter dated 31/8/12 – Exhibit P.
17. Letter dated 19/9/12 – Exhibit Q.
18. Letter dated 19/9/12 addressed to the 1st Defendant by the
Plaintiff – Exhibit R.
19. Letter dated 19/9/12 titled Suit No. M/376/2012 – Exhibit S.
20. Letter dated 19/9/12 titled Appeal No. CA/L/347/2012 –
Exhibit T.
21. Letter dated 22/9/12 – Exhibit U.
22. Letter dated 25/9/12 – Exhibit V.
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23. Copy of This Day Newspaper of Monday Dec. 7, 2012 –
Exhibit W.
24. Copy of Page 6 of the Guardian Newspaper, Monday 17,
2012 – Exhibit X.
25. Document Titled Power Holding Company of Nigeria Plc v
Lagos State Government – Exhibit Y.
26. The 18 Evidences in the 7 SPA Ajibade & Co Petty
Cash/Cheque Voucher booklets – Exhibit Y1 – Y18
respectively.
27. Internal Memo of 22/7/09 – Exhibit Z1.
28. Arik Airline Ticket – Exhibit Z2.
29. Rockview Hotel Accommodation Receipt – Exhibit Z3.
30. Car Hire Receipt dated 8/7/09 – Exhibit Z4.
31. Feeding Receipt – Exhibit Z5.
32. Internal Memorandum – Exhibit Z6.
33. Arik Airline Return Ticket – Exhibit Z7.
34. Car Hire Receipt – Exhibit Z8.
35. Internal Memorandum – Exhibit Z9.
36. CTC of Court Order – Exhibit Z10.
37. CTC of Notice of Appeal – Exhibi9t Z11.
38. File copy of Application for Extension of Time – Exhibit Z12.
39. CTC of 2 Notices of Appeal- Exhibit Z13.
40. Compiled Record of Appeal – Exhibit Z14.
41. Internal Memorandum – Exhibit Z15.
42. Originating Motion – Exhibit Z16.
The PW1 urged the court to enter judgment in favour of the
Plaintiffs.
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Under cross-examination by the 2nd Defendant’s counsel, the PW1
stated that from the statement of claim, the 2nd Defendant was
established in 2006. The brief was giving to the Plaintiffs in 2009;
that in one or two of the cases the Plaintiffs bills was referred to the
Attorney General of the Federation for settlement.
It is the evidence of the witness that as at the time the Plaintiffs
instituted this suit the 1st Defendant had not been liquidated; that
the Plaintiffs understanding with the 1st Defendant in respect of Suit
No. 206/09 was to conduct their case to conclusion. It was on that
basis that the Plaintiff sent a bill of N16 Million.
The matter 206/09 was stayed after the ruling of the preliminary
objections. The Plaintiffs did not file a statement of defence in the
said suit.
The witness further stated that payment for Suit No. 437/M was
subject to the recommendation by the 1st Defendant to the
Attorney General of the Federation and his approval.
That the understanding the Plaintiffs had with the 1st Defendant
was that they were going to handle the matter to conclusion.
Each of these matters was ongoing before the plaintiffs were
debriefed.
By Exhibit P, the Plaintiff were debriefed in respect of Suit M/376/12
only but all matters relating to the suit.
The PW1 further stated that it is wrong to deny the fact that the
Plaintiff were debrief in respect of only one suit.
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Und3er re-examination, the PW1 stated that Suit No. 208/09 is not
against the suit that their fee is not been paid.
Under cross-examination by the 1st Defendant’s counsel, the PW1
stated that the Plaintiffs were not aware that their fees were
subject to approval by the Attorney General of the Federation.
That apart from Suit No. M/376/12 the Plaintiff have completed
some while others were in progress.
The witness also stated that by the time the Plaintiffs received
Exhibit P; they had already concluded the matter in Suit No.
M/376/12.
No re-examination, PW1 was discharged.
Mr. Basawuno Mohammed Laddo, a subpoenaed witness testified
as PW2. He introduced himself as a staff of Bureau for Pu8blic
Enterprise (B.P.E.) as an Assistant Director.
The PW2 thereafter submitted the documents he was
subpoenaed to produce. The documents were admitted in
evidence as follows:
1. CTC of Federal Republic of Nigeria Official Gazette No. 85,
Vol. 97 dated 20/8/10 – Exhibit Z17.
2. CTC of the Transfer Instrument dated September, 2011 –
Exhibit Z18.
The PW2 being a subpoenaed witness just to produce document
was accordingly discharged and that was the case for the
Plaintiff.
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In defence of this case, the 1st Defendant filed 12-paragraph
statement of defence dated 16/4/13. However, in its wisdom
elected not to adduce any evidence to give life to its pleadings;
the said 1st Defendant’s statement of defence is accordingly
deemed abandoned.
The 2nd Defendant on its part filed a 57-paragraph statement of
defence/counter claim dated 29/4/15 and called a sole witness.
Mr. Bennie Chigbue testified for the 2nd Defendant as its sole
witness DW1.
In his evidence-in-chief, the DW1 adopted a 60-paragraph witness
statement on oath dated 30/4/15 as his evidence; the said 6-
paragraph DW1’s statement on oath is accordingly adopted as
forming part of this judgment.
In paragraph 5 of the said statement, the DW1 stated that the
agreed fees the Plaintiffs had with the 1st Defendant were fo4r the
conduct of the suit from beginning to the end of the suit.
It is the averment of DW1 in paragraph 7 that the out of pocket
expenses claimed by the Plaintiffs were not real expenses but
imaginary costs which were not part of the agreement and were
never incurred by the Plaintiff in respect of the suit.
In paragraph 10, the witness stated that by the terms of the
engagement, the Plaintiffs are entitled to payment of fees based
on the stage of the arbitration proceedings and that the sum of
N24 Million paid out of the N30 Million fees are for above the
quantum of services rendered by the Plaintiffs.
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It is the testimony of the DW1 that there was no agreement as to
the fees payable in respect of Suit No. M/367/2012 and that the
fees payable was to be determined by the Attorney General of
the Federation. See paragraph 17. He further stated that at all
times material the fees agreed on covered the prosecution of the
Defendant’s interest to the conclusion of the matter but that in
most cases the Plaintiff stopped at very infant stages and thus not
entitled to full payment of the contemplated fees. See paragraph
22 of the witness statement on oath; that the bills sent by the
Plaintiffs to the 1st Defendant were not agreed upon; that the
Plaintiffs did not earn the huge sums already paid to them as the
anticipated works for which payments were made were not done.
It is further stated that the Bill of Charges of the Plaintiffs does not
disclose the detailed particulars of work done and their respective
costs.
The DW1 further led evidence to the fact that the various
agreements for payment of fees between the Plaintiffs and the 1st
Defendant were made under duress and suspicious
circumstances of undue influence.
In paragraph 56 the DW1 stated that the 1st Defendant debriefed
the Plaintiffs in respect of only one of the several suits being Suit
No. M/376/2012 (LAGOS STATE GOVERNMENT v PHCN & 2 ORS but
the Plaintiffs abandoned the rest of the 1st Defendant’s briefs
despite the huge sums already paid to the Plaintiffs. Court is
urged to dismiss the Plaintiff’s claim.
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The 2nd Defendant did not tender any document in evidence.
Under cross-examination by the Plaintiff’s counsel, the DW1 stated
that Case No. FHC/C/CS/206/09 was for the claim of
N16,327,762.16k; that Lagos State Government discontinued with
the case. But that he was not aware that it was the Motion on
Notice field by the Plaintiff in this suit that led to the
discountenance of Suit No. CS/206/09 against the 2nd – 5th
Defendants.
The witness further stated that Exhibit P referred to Suit No.
M/376/2012 and that his understanding is that the Plaintiffs were
not asked to withdraw from the remaining suit.
Under cross examination by the 1st Defendant’s counsel, the DW1
stated that he cannot remember all the briefs handled by the
Plaintiffs on behalf of the 1st Defendant.
The witness restated that the Plaintiffs were debriefed only in
respect of Suit No. M/376/2012 LAGOS STATE GOVT. V PHCN & 2
ORS and were allowed to continue with the other briefs, but that
the Plaintiffs did not conclude the other briefs.
No re-examination, the DW1 was discharged and that is the case
of the 2nd Defendant. Counsel on both sides accordingly
addressed the court.
The 1st Defendant’s counsel filed 9-page final written address
dated 19/4/2017 wherein counsel submitted two issues for
determination, namely:
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1. Whether the present suit instituted by the Plaintiffs is
maintainable and enforceable against the 1st Defendant
having due regard to Exhibit Z17 and Z18 and the Electric
Power Sector Reform Act, 2005.
2. Whether the Plaintiffs have proved their case against the 1st
Defendant and therefore entitled to the reliefs in paragraph
46 of the Amended Statement of Claim.
On Issue 1, it is the submission that this suit filed by the Plaintiff is not
maintainable and enforceable against the 1st Defendant in view
of the transfer of the assets, liabilities, employees, rights,
proceedings and obligations of the 1st Defendant (PHCN PLC) to
the 2nd Defendant vide Exhibits Z17 (FGN Official Gazette dated
20/08/2010) and Exhibit Z18; a Transfer Instrument dated 23/9/2010
made pursuant to the Supplementary Regulations to Part 1 of the
Electric Power Sector Reform Act Order No. 46 and 47 of 2010.
It is submitted that Exhibit Z18 having successfully transferred all the
1st Defendant’s liabilities and obligations to the 2nd Defendant on
23/09/2011 and due regard being placed on Exhibit Z17 and
Exhibit Z18 and Section 10(6) and 12 of the Electric Power Sector
Reform Act 2005, the suit instituted by the Plaintiff on 7/1/2013 is
clearly not maintainable and enforceable against the 1st
Defendant and any order made by the Honourable Court against
the 1st Defendant shall be an order made in vain. A court of law
does not make an order in vain or an order that cannot be
carried out or enforced in law. See UNIV. OF JOS v DR. M.C.
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IKEGWUOHA (2013) 9 NWLR (Pt 1360) 478. Court is urged to dismiss
this suit filed against the 1st Defendant.
On Issue 2, it is the submission that the standard of proof in civil
cases is on the preponderance of evidence or the balance of
probabilities. See OKUABUME v OBABOKOR (1965) All NLR 36.
It is submitted that relying on the state of the pleadings of the
parties, the Plaintiffs have not discharged the burden placed on
them in law. The case of the 1st Defendant is that the Plaintiffs
were briefed to represent the 1st Defendant in different matters
pending before the Lagos State High Court. However, by Exhibit P
dated 31/08/2012, the Plaintiff were debriefed only in respect of
Suit No. M/376/2012. The Plaintiffs were allowed to continue with
the other cases.
It is submitted that by Exhibit K, it was clearly stated that the fees
payable to the Plaintiffs by the 1st Defendant are subject to the
express approval of the Honourable Attorney General of the
Federation and the Plaintiff consented to the arrangement.
It is the contention that it was a total abdication of its obligation to
prosecute the other cases, when Plaintiffs decided unilaterally
and without any cause to refuse to continue the prosecution of
the defence of 1st Defendant in the other suits and instead
submitted claims for professional fees in respect of suits not
concluded.
By virtue of Section 133 and 136 of the Evidence Act the burden
rests on the Plaintiffs to show or prove that they were debriefed in
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other suits apart from Suit No. M/376/2012 – LAGOS STATE GOVT. V
POWER HOLDING CO. OF NIG (PHCN) PLC & ORS.
It is submitted that the only professional fees to which the Plaintiffs
are entitled to is as contained in Exhibit S subject to the approval
of the Honourable Attorney General of the Federation. Therefore
the requests in Exhibit Q, R, T, U and V are totally unwarranted.
It is the contention that it was premature for the Plaintiffs to bring
this action as they are aware that the Honourable Attorney
General of the Federation is yet to give his approval to Exhibit S as
agreed upon by the Plaintiffs and the 1st Defendant.
It is submitted that the Plaintiffs have failed to discharge the
burden cast on them under the law as enshrined in Sections 133
and 136 of the Evidence Act. The Plaintiffs have led no credible
evidence for the burden to shift to the 1st Defendant and which
would have required the 1st Defendant to lead evidence and
therefore Plaintiffs are not entitled to the reliefs sought. Court is
urged to dismiss this suit.
The Plaintiff filed a 17-page final written address dated 16/6/17
wherein counsel submitted a lone issue for determination, thus:
“Whether the Plaintiffs have proved their case on the
preponderance of evidence led in this suit and are entitled to
the judgment of this Honourable Court in terms of their
claims?”
On this singular issue, it is the submission that the Plaintiffs have via
their amended statement of claim, the evidence adduced
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through the witness statement on oath of PW1 and exhibits
tendered established that the 1st Defendant is indebted to the
Plaintiffs for outstanding payments of professional fees for legal
services rendered to it and that the Defendants are jointly and
severally liable for this indebtedness.
It is submitted that the Plaintiffs claims against the Defendants are
for a specific sum of money – N30,492,616.61 which is due and
payable by reason of having provided professional legal services
to the 1st Defendant. Court is referred to the case of DANGE
SHUNI L.G.C. v OKONKWO (2008) All FWLR (Pt 415) 1772 Para E,
1757 at 1772 Paras F – H.
It is the submission that the 2nd Defendant in its defence and the 1st
Defendant in the cross-examination of PW1 failed to establish any
credible defence, to their liability to the Plaintiff. The averments of
the Defendants that the Plaintiffs abandoned the 1st Defendant’s
remaining briefs upon being debriefed could not be substantiated
as the Defendants did not lead any evidence to show that upon
receipt of the Plaintiff’s Exhibits Q, R, S, T, U and V requesting
payment of the 1st Defendant’s outstanding indebtedness.
It is submitted that the Plaintiffs were not only debriefed in Suit No.
M/376/2012 as averred by the Defendants, but were debriefed in
all matters relating to the above.
Learned counsel for the Plaintiffs further submitted that a legal
practitioner is entitled to legal fees for services rendered. Court is
referred to Section 16(2) of the Legal Practitioner’s Act Cap L11
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LFN 2004 which provides for the condition precedent and that the
Plaintiffs fully complied with the conditions therein.
On the issue of taxation, it is submitted that the 2nd Defendant
cannot seek taxation of the Plaintiffs bills of charges as it was not
the client to whom these bills were submitted from payment as
required by the provision of Section 17 of the Legal Practitioner’s
Act. See OYEKANMI v NEPA (2000) NWLR (Pt 690) 414.
It is the submission that the 2nd Defendant prayers seeking to set
aside the agreements between the Plaintiffs and the 1st
Defendant cannot stand as it is the law that a person who is not a
party or privy to a contract cannot sue on that contract. See
UNITED BANK OF AFRICA PLC v HON. SUNDAY JOHNSON & ANOR
(2008) LPELR – 5062 (CA). Court is urged to enter judgment for the
Plaintiffs.
The 2nd Defendant’s Counsel filed a 32-pages final written address
dated 21/9/2017 wherein counsel submitted the following issues
for determination:
1. Whether there was agreement for fees between the Plaintiffs
and the 1st Defendant; and if so
2. Whether the purported agreements are fair and not hurried
by undue pressure or influence?
3. Whether the bill of charges relied on by the Plaintiffs in this
case are not in contempt?
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4. Whether the bills of the Plaintiffs are not excessive and
contrary to Rules 48 and 52 of the rules of Professional
Conduct of Legal Practitioners?
5. Whether the Legal fees paid were earned by the Plaintiffs.
6. Whether the Plaintiffs were debriefed in respect of Suit No.
FHC/L/CS/2002, CA/C/347/2012, FHC/L/CS/741/2012 and the
Arbitral proceeding and if so, what remedy is available to
the Plaintiffs in the circumstances?
7. Whether the 2nd Defendant is entitled to her counter claim?.
On Issue 1 and 2, it is the submission that the Plaintiffs have failed
to prove that there was a written agreement as to the fees
payable by the 1st Defendant. The law requires agreement as it
relates to the charges such that the distinction must be drawn
between a written letter engaging a legal practitioner and a
written agreement for the charges. See Section 15(3) (d) of the
Legal Practitioners Act and Section 16 to 19 of the same Act; Case
of OYEKANMI v NEPA (2000) 4 NSCQR 1755.
It is further submitted that if the court finds that there was an
agreement reached between the Plaintiffs and the 1st Defendant,
the said agreements are marred by reasonable suspicion of
undue pressure from the Plaintiff.
It is further submitted that the letters of engagement does not
constitute an agreement and that the bills by the Plaintiffs cannot
take the place of an agreement because an agreement
envisaged in Section 15(3) (d) of the Legal Practitioners Act must
precede part payment and bill.
20
It is the contention of the 2nd Defendant that there is no evidence
to show that the 1st Defendant ever accepted to pay N16 Million
to the Plaintiffs. The law is that there must be shown an
agreement which creates reciprocal obligation with a mutuality of
purpose. See YASHE v UMAR (2003) 13 NWLR (Pt 838) 465.
Therefore the failure of the Plaintiffs to show any written
agreement between them and the 1st Defendant with respect to
their charges is fatal to their claim before this court.
The 2nd Defendant submitted that from Exhibits F, G and H, the
Plaintiffs and the 1st Defendant never made any agreement as to
charges for the arbitral proceedings. Exhibit G is best an offer
which was countered by Exhibit H. To sustain a claim for
agreement of charges, the Plaintiffs are required to prove the
acceptance of the counter offer made through Exhibit H. See
BILANTE INTERNATIONAL LTD v NDIC (2011) LPELR – 781 (SC). Court
is urged to hold that there was no written agreement as to
charges between parties on the arbitral proceedings.
With respect to Plaintiff’s agreement on fees in Suits M/376/2012,
CA/347/2012, and FHC/L/CS/741/2012, it is submitted that the 1st
Defendant stated clearly that the fee payable will be dependent
on the approval of the Attorney General of the Federation (AGF);
that the obligation of the 1st Defendant in respect of Suits
M/376/2012 and CA/347/2012 was only to make a
recommendation of the stated percentage of the requested fee
to the A.G.F. Therefore the 1st Defendant had no obligation to
pay fee based on the state of fact.
21
It is submitted that at best the correspondences in Exhibits I, J, K, L,
M, N and O created a conditional contract which is not
operational and or enforceable unless and until the condition
precedent has crystallized or been fulfilled. See SUBERU v ATIBA
IYALAMU SAVINGS LOANS LTD & ANOR (2007) LPELR – 8264 (CA);
BEST NIGERIA LTD v BLACKWOOD HODGE NIG. LTD (2011) LPELR –
776 (SC).
With respect to Issue 2, it is the submission that if the court finds
that there were agreements between the Plaintiffs and the
Defendants as to charges, it is the contention that the said
agreements must be set aside for being marred by undue pressure
or influence.
That the Plaintiffs have failed to justify that the agreement with the
1st Defendant was not marred by suspicion of undue pressure or
influence. Court is referred to the case of OYEKANMI v NEPA
(Supra), OFOEGBU v ONWUKA (2008) All FWLR (Pt 412) 1141 at
1148, P. 1161 Paras C – D. Court is also referred to the testimony of
DW1 and the court is urged to hold that the agreements entered
with the 1st Defendant were marred by suspicion of undue
pressure and influence.
On Issue 3, it is the submission that Exhibits B, C, D, E, F, G, H, I, J, K,
L, M, N and O have been discredited as not qualifying as
agreement as to charges. Exhibits Q, R, S, T, U and V are the
Plaintiff’s erroneous response to their misunderstanding of the 1st
Defendant’s letter dated 31/8/12, by which the Plaintiffs were
debriefed in one of the suit.
22
It is submitted that Exhibits Q, R, S, T, U and V are neither
agreements as to charges nor bills of charges and therefore
cannot be the basis of any claim before this court. See GTB PLC &
ANOR v ANYANWU, ESQ (2011) LPELR – 4220 (CA).
It is submitted that the failure of the Plaintiff to submit a proper bill
of charges as required is fatal to their case. See AKINGBEHIN v
THOMPSON (2008) 6 NWLR (Pt 1083) 270.
On Issue 4, it is the submission that the bills for services rendered to
the 1st Defendant by the Plaintiffs are excessive and contrary to
Rules 48 and 52 of the Rules of Professional Conduct of Legal
Practitioner.
Exhibit D clearly shows that the Plaintiffs were paid N750,000.00
only for defending the 1st Defendant in Suit No. FHC/L/308/2009
without more.
On the other hand, the Plaintiffs charged the 1st Defendant the
sum of N16 Million only for Suit No. FHC/L/CS/206/2009. There is
nothing peculiar in this suit that justifies that the same counsel can
accept N750,000:000 as professional fee in a matter pending at
the High Court and turn around to bill the same client the sum of
N16 Million for a similar matter at the same court at the same
time.
It is further submitted that the fee for the arbitration proceedings is
clearly excessive. This is because by the state of pleadings, the
arbitration is a fall out of the proceedings in Suit Number
23
FHC/CS/L/2006/2009 in which the Plaintiff represented the 1st
Defendant.
It is the submission that with regard to Suit M/376/2012,
CA/L/437/M/2012 and FHC/L/CS/741/2012 there was no
agreement and or competent bills for the services rendered by
the Plaintiffs as was earlier argued by the 2nd Defendant’s counsel
in his address.
However, if the court is of the view that the bills were based on the
agreement of parties, it is submitted that the bills are excessive
and the court should so hold; that the essence of the provisions of
Rule 48 and 52 of the Rules of Professional Conduct is to protect
clients against the oppressive conduct of Legal Practitioners. It is
therefore against public policy to allow a legal practitioner
recover fees which are excessive through this court.
On Issue 5, it is the submission that the fees paid to the Plaintiffs
and the ones being sought in this suit are not earned by the
plaintiffs.
It is submitted that from the state of pleadings, the Plaintiffs are not
consistent on the basis of their claim from the Defendants. In the
first breadth, the Plaintiffs contest that they are entitled to their fee
based on the agreement between them and the 1st Defendant.
At another breadth the Plaintiffs claim fees based on the quantum
of work done.
That being the case, the onus is on the Plaintiffs to prove that the
claimed fees are earned based on the agreement or the
24
quantum and value of services rendered. The Plaintiffs have failed
to do so in this suit.
On Issue 6, it is the submission that the Plaintiffs were only
debriefed in respect of one out of the five suits, that is in Suit No.
M/376/2012 and that the Plaintiffs abandoned their briefs in
respect of the other four matters. Court is referred to Exhibit P and
the case of AGUOCHA v AGUOCHA (2004) LPELR – 7357 or (2005)
1 NWLR (Pt 906) 165.
It is further submitted that the Plaintiffs have failed to prove that
the 1st Defendant debrief them in all the six cases they were
conducting for the 1st Defendant and that being the case, the
Plaintiffs cannot claim fee on the briefs they undertook to conduct
to the end, after abandoning them without justification. Court is
urged to dismiss the Plaintiff’s suit.
With respect to claim against the 2nd Defendant, it is submitted
that the 2nd Defendant had been in existence before 2016, it was
not made a party and was not served with any bill of charges of
the Plaintiffs and as such cannot be liable for the acts of the 1st
Defendant. The law is that a non party to a contract cannot be
dragged to court as a scape-goat when it appears that the liable
party has lost capacity to fulfil his obligations under the contract.
See the case of UNITED BANK FOR AFRICA & ANOR v ALH.
BABANGIDA JARGABA (2007) 5 SC 5 at 17 Paras 10 – 35; REBOLD
INDUSTRIES LTD v MAGREOLA & ORS (2015) LPELR – 24612 (SC).
25
On Issue 7, I am of the considered view that it is an issue to be
considered in the counter claim. Court is finally urged to dismiss
the Plaintiffs’ suit.
The Plaintiffs counsel filed a 20-page reply on points of law to the
2nd Defendant’s address. The said reply is dated 3/10/17 wherein
counsel formulated the following issues for determination:
1. Whether there was agreement for fees between the Plaintiffs
and the 1st Defendant and if so
2. Whether the purported agreements are fair and not marred
by undue pressure or influence?
3. Whether the bill of charges relied on by the Plaintiffs in this
case are not incompetent?
4. Whether the bills of the Plaintiffs are not excessive and
contrary to Rule 48 and 52 of the Rules of Professional
Conduct for Legal Practitioners.
5. Whether the Legal fees paid were earned by the Plaintiffs.
6. Whether the Plaintiffs were debrief in respect of Suit No.
FHC/L/CS/2009, CA/C/347/2012, FHC/CS/741/2012 and the
Arbitral proceeding and if so what remedy is available to the
Plaintiffs in the circumstances.
7. Whether the 2nd Defendant is entitled to her counter claim?
On Issue 1, it is submitted that several letters of instructions, terms of
engagement and invoices exchanged between the Plaintiffs and
the 1st Defendant which are tendered and marked as Exhibits B,
C, D, E, F, G, H, I, J, K, L, M, N and O are clear written agreements
between the Plaintiffs and the 1st Defendant and are therefore
26
binding on both parties. See DRAGETANCES CONST (NIG) LTD v
F.M.V. LTD (2011) 16 NWLR (Pt 1273) Pg 308 at 353 Paras C – D;
A.I.B. LTD v I.D.S. LTD (2012) 17 NWLR (Pt 1328) Pg 1 at 50 Paras E –
F.
It is further submitted that it is indisputable that the 1st Defendant
agreed to the terms of engagement voluntarily and as a sign of its
acceptance made deposits on account and continued to
exchange correspondence with the Plaintiffs in respect of the
matters.
On the issue of counter offer as raised by the 2nd Defendant, it is
submitted that it does not arise and the cases of BILANTE
INTERNATIONAL LTD v NDIC (Supra) and .F.I. GROUP v BUREAU OF
PUBLIC ENTERPRISES (Supra) relied upon by the 2nd Defendant are
not applicable in the instant case on the ground that the Plaintiffs
performed their obligations under the contract and the 1st
Defendant made part payments in line with the agreements.
It is submitted that it does not lie in the mouth of the 2nd Defendant
to contend that there was no agreement in relation to fees
between the Plaintiffs and the 1st Defendant. The 1st Defendant
who is a party to the said agreements has not disputed the fact
that it entered into the agreements for the payment of fees.
On Issue 2, it is the submission that the 2nd Defendant has failed to
discharge the burden imposed on it by law and that its assertion
of undue influence is an issue of mere speculation and nothing
27
more. The case of OYEKANMI v NEPA (Supra) relied upon by the
2nd Defendant is not on all fall with the instant case.
It is submitted that from the facts and evidence before the court,
the 1st Defendant accepted the terms of engagement voluntarily
without prompting as it had a full-fledged legal department that
considered their options before these agreements were entered
into.
On Issue 3, it is submitted that from the case of GTB PLC & ANOR v
ANYANWU (Supra) a bill of charges is only required when there is
no agreement as to fees. In the instant case, where the existence
of an agreement for fees has been established by credible
evidence, the competence or otherwise of the bill of charges is a
non-issue and cannot affect the plaintiffs claims.
It is submitted that in the unlikely event that the court finds that
there was no agreement as to fees in respect of the charges to be
subjected to the approval of the Attorney General, the Plaintiffs
are nevertheless entitled to be remunerated. Court is urged to so
hold.
On Issue 4, it is the submission that Rule 52(2) of the Rules of
Professional Conduct for Legal Practitioner set out the factors to
be considered in fixing the amount of fees. Among the factors
enumerated are the time and labour required, the novelty and
difficulty of the question involved and the skill required to conduct
the case properly, the amount involved or controversy and the
benefits resulting to the client from the services.
28
In the instant case, the dispute involved a sum in excess of N16
Billion and the Plaintiffs who were instructed in these matters are
very senior members of the bar. The Plaintiffs applied industry and
skill in handling the 1st Defendant’s matters and the fees they
charged for handing these matters, which were agreed by the 1st
Defendant were not excessive nor were they inconsistent with fees
that would be charged by numbers of the Bar of equivalent
seniority or standing to the Plaintiffs for the handling of matters of
similar complexity; more so this fees were agreed by the parties
and the 1st Defendant never complained but made deposits in
line with the terms of engagement.
On Issue 5, it is the submission that the fees claimed were earned
by the Plaintiffs. The Plaintiffs had applied industry and skill in
handling of the 1st Defendant’s matters and this was also
acknowledged in the 2nd paragraph of Exhibit H and paragraph 3
of Exhibit P and uncontroverted by the Defendants.
It is further submitted that the Defendant did not provide or lead
evidence of a pro-rata agreement between the Plaintiff and 1st
Defendant.
On Issue 6, it is the submission that during the 1st and 2nd
Defendant’s cross-examination of PW1, the evidence led
established the fact that Suit No. M/376/2012 had already been
concluded and was on appeal before the issuance of the letter
debriefing the Plaintiffs.
29
It is submitted therefore, that the Plaintiff were not only debriefed
in Suit No. M/376/2012 as averred by Defendants but were
debriefed in all matters relating to the above suit.
On the contention that the bill of charges was not served on the
2nd Defendant, it is submitted that the Plaintiff were not engaged
by the 2nd Defendant and the bills of charges is only meant for
delivery to a client and the 2nd Defendant at all material time was
never the Plaintiff’s client. Court is urged to enter judgment for the
plaintiffs.
Issue 7 is for the counter claim and will be considered accordingly.
I have carefully considered the processes filed, evidence of
witnesses and submission of learned counsel on both sides, I do
adopt the issues formulated by the 2nd Defendant’s counsel as the
issues for determination:
1. Whether there was agreement for the fees between the
Plaintiffs and the 1st Defendant; and if so
2. Whether the agreement are fair and not marred by undue
pressure or influence?
3. Whether the Bill of Charges relied on by the Plaintiffs in this
case are not incompetent.
4. Whether the bill of the Plaintiffs are not excessive and
contrary to Rules 48 and 52 of the Rules of Professional
Conduct of Legal Practitioners.
5. Whether the legal fees paid were earned by the Plaintiffs.
30
6. Whether the Plaintiffs were debriefed in respect of Suit No.
FHC/L/CS/2009, CA/C/347/2013, FHC/L/CS/741/2012 and the
Arbitral proceedings.
On Issue 1, it is the contention of the 2nd Defendant that there are
two principal ways by which a legal practitioner can secure the
payment for the services he rendered to his client. They are: by
written agreement pursuant to Section 15(3) (d) of the Legal
Practitioners Act or by Bill of Charges as provided by Section 16
and 19 of the same Act.
In the first instance, the legal practitioner who makes a claim
based on agreement must prove the existence of the said
agreement.
In the instant case with respect to the 1st Defendant’s instruction
for representation in Suit No. FHC/L/CS/206/2009; ATTORNEY
GENERAL OF LAGOS STATE v PHCN PLC & 4 ORS, it is clear that by
virtue of paragraph 2 and 5 of Page 2 in Exhibit B and paragraph
2 and 3 of Exhibit C and Exhibit E there was agreement between
the Plaintiffs and the 1st Defendant with respect to fees.
It is trite law that parties are bound by the contract they voluntarily
entered into and cannot act outside the terms and conditions
contained in the contract. See the case of A.I.B. LTD v I.D.S. LTD
(Supra).
It is indisputable that the 1st Defendant agreed to the terms of
engagement voluntarily and as a sign of its acceptance made
31
deposits on account and continued to exchange
correspondence with the Plaintiffs in respect of the matter.
With respect to the 1st Defendant’s instruction for representation in
other matters, it is clear from the contents of Exhibits D, F, G, H, I, J,
K, L, M, N and O there were agreement between the parties for
the Plaintiffs to represent the 1st Defendant accordingly. However,
with respect to the fee with regard to the representation in the
arbitral proceedings. The totality of the Plaintiff’s evidence in this
regard is that the 1st Defendant instructed them, by Exhibit F, to
represent it in the arbitration proceedings which the Defendant
accepted by Exhibit G. A careful consideration of the said
exhibits shows that Exhibit F is a mere letter of engagement
regarding the fee payable, the 1st Defendant stated in paragraph
4 of Page 2 as follows:
“Your bill for professional services should be forwarded to this
office for examination and settlement on conclusion the
matter. However, as discussed, the final bill payable will be
dependent on the continuance or otherwise of a similar case
before the Lagos High Court by the Lagos State Government”
In Exhibit G, the Plaintiffs accepted their engagement to represent
the 1st Defendant and made an offer of N35 Million and requested
for a 60% immediate payment and for the balance to be paid at
the conclusion of the arbitral proceedings.
By Exhibit H, the 1st Defendant informed the Plaintiffs of the
payment of N18 Million out of N30 Million which if approved as fee
32
for the Plaintiffs; leaving a balance of N12 Million to be paid at the
conclusion of the case.
In the light of the above, I hold that there was written agreement
with respect to fees in the arbitration proceedings.
With respect to the Plaintiff’s instruction in Suit Nos. M/376/2012,
CA/347/2012 and FHC/L/CS/741/2012. The relevant exhibits are
Exhibits I, J, K, L, M, N and O respectively.
In the above mentioned cases, the Plaintiffs’ position is that they
were engaged to handle these cases upon which they sent their
bills to the 1st Defendant. The 1st Defendant stated clearly that the
fee payable will be dependent on the approval of the Attorney
General of the Federation.
In paragraph 3 of Exhibit K, the 1st Defendant stated as follows:
“We wish to state further that whatever fee payable to you is
dependent on the approval of the Honourable Attorney
General of the Federation and Minister of Justice. However,
we will make recommendation for about 50 – 60% of the
amount being requested for his approval”.
In paragraph 2 of Exhibit L, the Plaintiff accepted the contents of
Exhibit K to the effect that payment of fee was subject to the
amount approved by the Attorney General of the Federation.
Exhibits M and N are couched in similar terms with regards to
Appeal No. CA/347/2012 which emanated from Suit Number
M/376/2012.
33
In the light of the above it is without doubt that there is no specific
agreement as to fees by the parties with respect to Suit No.
M/376/2012, CA/347/2012 and FHC/L/CS/741/2012. The obligation
of the 1st Defendant was only to make a recommendation of the
stated percentage of the requested fee to the Attorney General
of the Federation.
I am of the considered view that the correspondences in Exhibits I,
J, K, L, M, N and O crated a conditional contract to the effect that
the 1st Defendant will pay fee which is approved by the Attorney
General of the Federation.
Under cross-examination of PW1 by the 1st Defendant’s counsel,
the witness stated that Exhibits K and N speaks for itself. However,
he claimed that the Plaintiffs were not aware that their fees were
subject to approval by the Attorney General of the Federation.
Yet in another breathe under cross-examination by the 2nd
Defendant’s counsel, the PW1 state thus:
“...Payment for Suit No. 437/M was subject to the
recommendation by the 1st Defendant to the Attorney
General of the Federation and his approval”
He further stated that in Exhibit K, he had nothing to show that
there was an approval by the Attorney General of the Federation
for payment. The law is trite that a conditional contract is not
operational and or enforceable unless and until the condition
precedent has been fulfilled. See SUBERU v ATIBA IYALAMU
SAVINGS LTD & ANOR (Supra).
34
In BEST NIG. LTD v BLACKWOOD HODGE NIG. LTD (Supra) the
Supreme Court held thus:
“A Conditional acceptance of an offer does not in law
constitute an acceptance of the offer in question. A qualified
acceptance of an offer cannot give rise to a binding
agreement between the parties”
In the light of the above, I hold that Issue 1 is resolved partly in
favour of the Plaintiff and partly in favour of the Defendants.
On Issue 2,l it is the contention by the 2nd Defendant that if there
was an agreement between the Plaintiffs and the 1st Defendant
such agreement must be set aside for being marred by undue
pressure or influence.
The law is settled that the burden of proving a particular fact is on
the party alleging that fact. See JALLO LTD v OWONIBOYS TECH.
SERV. LTD (1995) 4 NWLR (Pt 391) Pg 534 at 545 – 546 Paras H – B.
The 2nd Defendant had contended that the 1st Defendant was
unduly influenced when it engages the services of the Plaintiffs to
defend and prosecute the various matters.
I am of the view that the 2nd Defendant has failed to discharge
the burden imposed on it by the law. In fact in the 33-paragraph
2nd Defendant amended statement of defence dated 30/4/15
there was no mention of undue pressure or influence on the part
of the Plaintiff against the 1st defendant.
35
In the light of the above, I hold the considered view that the issue
of undue influence is not proved; this issue is accordingly resolved
in favour of the Plaintiffs.
On Issue 3, it is the contention of the 2nd Defendant that Exhibits Q,
R, S, T, U and V are neither agreement as to charges nor bills of
charges and therefore cannot be the basis of any claim before
this court.
The above exhibits are correspondences by the Plaintiffs to the 1st
Defendant forwarding their outstanding invoice for the agreed
fees for professional services rendered after the Plaintiffs were
debriefed.
In the case of GTB PLC & ANOR v ANYANWU (Supra) the court
held as follows:
“A legal practitioner has a right to be remunerated for his
services, he can either be paid in advance upon named fees
or rely on the terms of any agreement reached for his fees.
However, if he has not received his fees and no agreement
was reached as to what they would be, he must submit his
bills of charge”.
It is settled from the above authority that a bills of charges is only
required when there is no agreement as to fees.
In the instant case, I hold the firm view that Issue 1 above has
settled the issue of fees, I so hold.
36
On Issue 4, it is the contention of the 1st Defendant that the bills or
fees of the Plaintiffs are excessive and contrary to Rules 48 and 52
of the Rules of Professional Conduct of Legal Practitioner.
For clarity see Rule 48 as reproduced thus:
1. A lawyer is entitled to be paid adequate remuneration for
his service to the client.
2. A lawyer shall not enter into an agreement for, charge or
collect an illegal or clearly excessive fee.
3. For the purpose of this rule a fee is clearly excessive when,
after a review of the facts, it is clear that it does not take
into account the consideration set out in Rule (52).
Rule 52(1) state as follows:
“The professional fees charge by a lawyer for his service shall
be reasonable and commensurate with the service
rendered. Accordingly, the lawyer shall not charge fees
which are excessive or so low as to amount to
understanding?”
A combined reading of the above Rules shows that a lawyer can
only charge and be paid for actual service rendered and he is
prohibited from charging excessively for such service.
Now, to consider whether a bill is excessive, the court must
consider the peculiar facts and circumstances of each case.
Exhibit D shows that the Plaintiffs were paid N750,000:00 only for
defending the 1st Defendant in Suit Number FHC/L/308/2009
37
between Otunba Isola Adebanjo v PHCN Plc. It is worthy of note
that the suit was conducted at the Federal High Court Lagos
where most other suits were conducted and was filed in 2009.
On the other hand, the Plaintiff charged the 1st Defendant the
sum of N16 Million only for Suit No. FHC/L/CS/206/2009. This suit
was filed at the same Federal High Court in the same year 2009
against the same 1st Defendant. As rightly stated by learned
counsel to the 2nd Defendant, there is nothing peculiar in this suit
that justifies that the same counsel can accept N750,000 as
professional fee in a matter pending at the High Court and turn
around to bill the same client the sum of N16 Million for a similar
matter at the same court at the same time.
It is also on record that the Plaintiffs charged the 1st Defendant
N30 Million to handle the arbitration proceedings and charged
N16 Million to defend 5 Defendants in court as can be seen in
Exhibits B, C and D. By paragraph 9 of the statement of claim, the
suit was discontinued against the 2nd to 5th Defendants and only
the 1st Defendant was made a Respondent in the arbitral
proceedings. The poser is if N16 Million can be paid for defending
5 persons in court, is it not on the high side to charge only one out
of the 5 Defendants the sum of N30 Million?.
However, it is instructive to point out that these fees were agreed
by the parties and the 1st Defendant never complained but made
deposits in line with the terms of engagement. The law is that the
court cannot rewrite a contract or agreement for parties.
38
It is also worthy of note that the bills or fees presented by the
Plaintiffs to the 1st Defendant passed through the Legal
Department of the 1st Defendant.
It is settled law that if the parties have agreed between
themselves upon the conditions for the formation of a contract,
and these conditions were embodied in a document, then they
are bound by the terms and conditions set down in the
documents. Having so bound themselves it is not the duty of the
court to make a contract for the parties. See OWONIBOYS TECH
SERV. LTD v U.B.N. LTD (Supra).
On Issue 5, it is the contention of the 2nd Defendant that the fee
paid to the Plaintiffs and the ones being sought in this suit are not
earned by the Plaintiffs.
The law is settled that there are two ways to determine the fee
payable for the services rendered by a legal practitioner to his
client are determined. They are based on the agreement
between the legal practitioners or by an assessment of the work
done in all cases however, the law requires that such fee must be
earned in the sense that it must be a payment made for services
rendered. In other words, it has never been and will never be the
intention of the law for a legal practitioner to be paid for the
services he did not render. See BARRISTER GBENGA AKINGBEHIN v
CHIEF MRS. THOMPSON (2007) LPELR – 8168.
In the instant case, the Plaintiff contest that they are entitled to
their fee based on the agreement between them and the 1st
39
Defendant. In another breathe the Plaintiffs claim fee based on
the quantum of work done. It is on this basis for example, that the
Plaintiffs claim the sums of N3,543,750.00 for Appeal No.
CA/L/437/M/2012 against their perceived agreed fee of
N13,500,000:00. In Suit No. FHC/L/CS/741/2012 the Plaintiff claim
before this court the sum of N5,250,000:00 against their perceived
agreed fee of N20 Million. The onus is on the Plaintiffs to prove
that the claimed fees are earned based on the agreement or the
quantum and value of services rendered. This, the Plaintiffs have
failed to do in this suit.
Accordingly, this issue is resolved in favour of Defendants.
On Issue 6, it is the assertion of the Plaintiffs that the 1st Defendant
engaged them to represent her in five cases Suit Nos.
FHC/L/CS/2009, M/376/2012, CA/L/437/2012, FHC/L/CS/74/2012
and the arbitral proceeding. The Plaintiff’s claim is that the 1st
Defendant debriefed them from handling the afore-stated cases
by virtue of Exhibit P.
The Defendant’s position is that the Plaintiffs were only debriefed
in respect of one out of the five suits; that is Suit No. M/376/2012. I
am of the view that the only document to resolve this issue is
Exhibit P since document speaks for themselves. The said Exhibit P
is reproduced thus:
40
31st August, 2012
PHCN/0121/CF.1939/2012
SPA Ajibade & Co,
Suit 301 SPAACO House,
No. 27, Macarthy Street,
Onikan, P.O. Box 80373,
Lafiaji Lagos
Lagos State
Dar Sir,
RE: SUIT NO. M/376/2012
LAGOS STATE GOVERNMENT
V
POWER HOLDING COMPANY OF NIGERIA
(PHCN) PLC AND 2 ORS
The above captioned suit refers.
Please be informed that you have been debriefed from
representing us in all matters relating to the above suit.
We wish to use this opportunity to sincerely appreciate the industry
and skills which you deployed in defending the interest of the
company in this matter.
Kindly arrange to hand over the case file and all other documents
relating to this matter to Messrs Paul Usoro & Co of Abia House, 1st
Floor, Left wing, Central Business District, Abuja.
Please let us have your outstanding bills (if any) to enable us
recommend same for payment.
Thank you for your understanding.
Yours faithfully,
Signed
P.U. Echesi
For: GM/Sec/Legal Adviser
41
It is settled law that where the provision of any document is clear
and unambiguous they shall be given their plain and natural or
literal meaning. The court cannot import its own interpretation
into clear and straight forward terms of an agreement as
contained in a document. See AGUOCHA v AGUOCHA (Supra).
Given the ordinary interpretation of the content of Exhibit P, the
Plaintiffs were debriefed from handing Suit No. M/376/2012 and
not all the suits being handled for the 1st Defendant.
It follows that the Plaintiffs simply abandoned the rest of the 1st
Defendant’s brief and that being the case, the Plaintiffs cannot
claim fee on the briefs they undertook to conduct to the end,
after abandoning them without justification.
Accordingly, I resolve this issue in favour of the Defendants.
The 1st Defendant made attempts to shy away from its liability to
the Plaintiff by trying to assert that this suit is not maintainable and
enforceable against it. It is on record that this court in its ruling
delivered on 14th October 2016 wherein the court dismissed the 1st
Defendant’s application seeking the striking out of it name from
the suit on the ground that it was no longer in existence and was
not a legal person capable of suing or being sued.
In the light of the above, the submission made by the Defence
counsel on this issue is of no moment.
42
In conclusion, I am of the considered view that the Plaintiff have
failed to proffer credible and material evidence to warrant
judgment in their favour. This case is accordingly dismissed.
(Sgd)
JUSTICE SALISU GARBA
(PRESIDING JUDGE)
27/11/2017
43
JUDGMENT IN THE COUNTER CLAIM
The 2nd Defendant counter claimed against the
Plaintiff/Defendant to the counter claim as follows:
1. A Declaration by the Honourable Court that the agreements
between the Plaintiffs and the 1st Defendant in respect of Suit
Numbers FHC/L/CS/206/2009, M/376/2012, CA/C/347/2012,
FHC/L/CS/741/2012 and the Arbitral proceedings were made
under duress and or circumstances of undue influence
asserted by the Plaintiffs on the 1st Defendant.
2. An Order of the Honourable Court setting aside the
agreement/bill of charges between the Plaintiffs and the 1st
Defendant in respect of Suit No. FHC/L/CS/206/2009,
M/376/2012, CA/C/347/2012, FHC/L/CS/741/2012 and the
Arbitral proceedings were made under duress and or
circumstances of undue influence against the 1st Defendant.
3. An Order of the Honourable Court setting aside the
agreement between the Plaintiffs and the 1st Defendant in
Suit No. M/376/2012 to discharge the Mareva injunction, as
illegal, unlawful and against public policy.
4. An Order setting aside the bill of charges in Suit Nos.
FHC/L/CS/206/2009, M/376/2012, CA/C/347/2012,
FHC/L/CS/741/2012 and the Arbitral proceedings for non-
compliance with the Legal Practitioner Act.
5. An Order setting aside the bill of charges of the Plaintiffs
against the 1st Defendant for being offensive to the Rules of
Professional Conduct for Legal Practitioner.
44
6. A Declaration that the fees charged by the Plaintiffs against
the 1st Defendant are excessive.
7. A Declaration that the abandonment of the 1st Defendant’s
briefs by the Plaintiffs is unethical.
8. A Declaration that payments already made to the Plaintiffs
are in excess of the actual services rendered to the 1st
Defendant.
9. The taxation of the Plaintiff’s bill of charges by the
Honourable court.
10. An Order of the refund of N10 Million already paid the
Plaintiffs in Suit No. FHC/L/206/2009 or any fraction thereof
after taxation of the bill of charges.
11. An Order of the refund of N24 Million paid the Plaintiff by the
1st Defendant in the botched arbitral proceedings or such
fraction thereof after taxation of the bill of charges.
12. An Order for the refund of N1,900,000:00 paid the Plaintiffs in
respect of Suit No. M/376/2012 or such fraction thereof after
taxation.
13. A Declaration that by the understanding of the Plaintiffs and
the 1st Defendant, the payment in respect of Suit No.
M/376/2012, CA/C/347/2012, FHC/L/CS/741/2012 are
payable by the Attorney General of the Federation and not
the Defendants.
14. 10% Interest on judgment sum from date of judgment till final
liquidation thereof.
15. General damages of N10 Million against the Plaintiffs jointly
and severally.
45
16. The cost of this suit.
In prove of this claim as against the Plaintiff, the 2nd
Defendant/Counter Claimant filed a 24—paragraph pleadings
captioned Counter Claim dated 30/4/15 and called a sole
witness.
Bennie Chigbue testified as the DW1; his statement on oath dated
30/4/15 is adopted as forming part of this judgment.
At this point it is pertinent to state that it is trite law that a person
who is not a party or privy to a contract cannot sue on the
contract. See U.B.A. PLC v HON. SUNDAY JOHNSON & ANOR
(Supra). Thus the 2nd Defendant’s prayers seeking to set aside the
agreement between the Plaintiffs and the 1st Defendant contest
the Plaintiffs invoices and seek refunds of professional fees paid by
the 1st Defendant to the plaintiff based on allegations that the
Plaintiffs arm twisted the 1st Defendant and capitalized on its
vulnerability must fail. The 2nd Defendant was not privy to these
agreements. Hence I hold the considered view that the 2nd
Defendant has no locus standi to contest the propriety of the
contract entered into between the Plaintiffs and the 1st Defendant
to which it was not a party.
It is also worthy of note that the 2nd Defendant did not lead any
oral or documentary evidence to prove its claim as contained in
its counter claim; more so, by the judgment of this court in the
substantive case it will amount to an academic exercise to delve
into the merit or demerit of this counter claim.
46
In the light of all the above stated, I am of the considered view
that this counter is liable to be dismissed on the premise that a
person who is not originally a party to a contract, cannot be
bound by its terms, only parties to a contract can claim any rights
or obligation under it. This is known as the doctrine of privity of
contract. See ATTORNEY GEN. OF FED. V A.I.C. LTD (2000) 6 SC (Pt
1) 175 at 183.
Similarly, only parties to a contract or persons who are privy to a
contract can sue and be sued on it. See the Supreme Court case
of LDPC v NIG. LAND & SEA FOOD CO. LTD (1992) 2 NWLR (Pt 244)
653.
In the light of the above, this counter claim stands dismissed.
(Sgd)
JUSTICE SALISU GARBA
(PRESIDING JUDGE)
27/11/2017
Plaintiff’s Counsel – We would like to thank the court for the
judgment.
1st Defendant’s Counsel – We thank the court for the judgment.
2nd Defendant’s Counsel – We would like to thank the court for the
judgment.
(Sgd)
JUSTICE SALISU GARBA
(PRESIDING JUDGE)
27/11/2017