08/11/2017
DIMACON INDUSTRIES LIMITED V MR. OLAYIWOLA AJAYI-BEMBE & ORS
Appeal no: CA/L/421/2013
AREAS OF LAW:
APPEAL, COUNTER CLAIM, COURT, PRACTICE AND PROCEDURE, WORDS AND PHRASES
SUMMARY OF FACTS:
The Appellant sought various reliefs against the Respondents for allegedly unlawfully invading some parcels of land situate at and known as Plots 3 and 4, Block 9, Ikoyi Foreshore, Ikoyi, Eti-Osa Local Government, Lagos State.
At the close of trial, the parties as ordered by the court below filed their final written addresses. In their final address, the Respondents contended that the Appellant's Writ of Summons was incurably defective and prayed the court below to strike out the Writ of Summons on the authority of the Supreme Court's decision in Okafor V. Nweke (2007) 3 S.C (Pt. II) 55 . 62-63 and to proceed to decide the suit solely on the 3rd and 4th Respondents' Counter Claim, which they contend exists as a separate suit. The Appellant proceeded by filing an application seeking leave to file a Counter Claim to the 3rd and 4th Defendants' Counter Claim to enable the Appellant present as it were, though seemingly stranger than fiction, its case in place of its incompetent Writ of Summons and to have the court below decide the matter on the merits, which application the court below dismissed on 9/3/2012.
The Appellant subsequently filed an application for praying the court below to strike out its Writ of Summons for being a nullity and consequently to also strike out the Counter-Claim of the 3rd and 4th Respondents on the ground that same was premised upon the Writ of Summons of the Appellant, which had turned out to be a nullity in law, an application which the court below granted in part by striking out the Appellant's Writ of Summons for being a nullity but allowed the 3rd and 4th Respondents' Counter Claim as being independent in its existence of the Appellant's claims. Dissatisfied with the decision of the Court, the Appellant has appealed to the Court of Appeal.
HELD:
Appeal Dismissed
ISSUE FOR DETERMINATION:
Ø Whether the court below was right in allowing the 3rd and 4th Respondent's Counter Claim after striking out the Appellant's Writ of Summons for being a nullity?
RATIONES:
ISSUES FOR DETERMINATION- BASIS FOR THE ISSUES FOR DETERMINATION
“In law, it is the facts that frame the issues for decision. Thus, decisions of courts are not to be pulled by the hair and applied perforce across board.” PER B.A. GEORGEWILL, J.C.A
RULES OF COURT- INSTANCE WHERE THE PROVISIONS OF THE LAGOS STATE HIGH COURT RULES CAN BE DEPARTED FROM
“I am aware of the provisions of Section 2 of the High Court Law of Lagos State, providing for situations where the Rules of the Court below can be departed from, thus:
"Where a matter arises in respect of which no adequate provisions are made in the rules, the Court shall adopt such procedure as will in its view do substantial justice between the parties concerned."
- PER B.A. GEORGEWILL, J.C.A
“DISCONTINUANCE” AND “STRIKING OUT” - DEFINITION OF “DISCONTINUANCE” AND “STRIKING OUT”
“The word "discontinued" as specifically stated in Order 17 Rule 11 of the Rules of the Court below and the word "Striking out" as ordered by the Court below have been variously but succinctly defined both in judicial authorities and by learned authors. While, discontinuance is defined as the discontinuing of an action because the Plaintiff has not observed the formalities needed to keep it pending, striking out refers to action a court takes upon the discontinuance of a claim. A striking out of a claim occurs when a court directs the removal of the case from the record or docket as being one over which it has no jurisdiction and no power to hear and determine it on the merit. However, generally, the word, "Discontinuance" means an ending, causing to cease, ceasing to use, giving up, leaving off, termination or abandonment or the like. In legal parlance, the word discontinuance means cessation of the proceedings in an action where the Plaintiff voluntarily puts an end to it, either by giving notice in writing to the Defendant before any step has been taken in the action subsequent to the answer or at any other time by order of court.” PER B.A. GEORGEWILL, J.C.A
“DISMISSAL” AND “STAY OF EXECUTION”- DISTINCTION BETWEEN “DISMISSAL” AND “STAY OF EXECUTION”
“On the other hand, "Dismissal" means an order or judgment finally disposing of an action, suit or motion upon trial of the issues involved. While, "Stay of proceedings" on its part means the temporary suspension of the regular order of proceedings in a case by direction or order of the court, usually to await the action of one the parties in regard to some omitted step or some act which the court has required him to perform as incidental to the suit or pending an appeal against some interlocutory decisions or orders of a lower court. See Blacks Law Dictionary 6th Edition . 464, 465 & 1423; New Webster's Dictionary of English Language International Edition. In some circumstances, instances of which abound in the law reports, dismissal and striking out may ultimately have the same effect in law. See Onyekaonwu & Anor V. Udegbunam (2009) LPELR - 8344 (CA), where Sanusi JCA (as he then was but now JSC) had opined inter alia thus:
"Dismissal may merely amount to striking out..." See also Obasi Bros Co. Ltd V. MBAS Ltd (2005) 9 NWLR (Pt. 929) 117.” PER B.A. GEORGEWILL, J.C.A
DISCONTINUANCE- CONSEQUENCES OF DISCONTINUANCE OF A MATTER
“In law, the consequences of discontinuance have been well established in a plethora of judicial authorities as are replete in the law reports. In Aghadiuno & Ors V. Onubogu (19980 NWLR (Pt. 548) 16, Iguh JSC had expatiated on this salient principle of law inter alia thus:
"A Plaintiff may without the leave of court discontinue a suit against all or any of the Defendants or withdraw any part of his claim....Such Notice of Discontinuance however, must be in writing. But after the receipt of such Notice by the Defendant, the Plaintiff cannot recall it as such discontinuance or withdrawal automatically terminates the proceedings and a formal order of striking out the suit may be made by the court"
See also Bab at uncle V. PAS & TA Ltd. (20070 13 NWLR (Pt. 1050) 113, the Supreme Court, where Muhammad JSC, had expatiated inter alia thus:
"Once a litigant withdraws his action in a situation where no leave of court is required, the trial court has no option but to strike out the suit......Even if the court insists that he should
continue, he may refuse to tender evidence or take any further steps in the action, that same court can do nothing other than to strike out the case of where evidence has been taken to a reasonable level to dismiss the action "
See also Eronini V. Iheuko (1989) NWLR (Pt. 101) 46; Ekudano & Anor v. Keregbe & Ors (2008) 4 NWLR (Pt. 1077) 422 (SC).” PERB.A. GEORGEWILL, J.C.A
“STRIKING OUT” - DEFINITION OF “STRIKING OUT”
“In Young Shall Grow Motors Ltd. V Okonkwo & Anor (Supra) @ p. 12, the Supreme Court per /. T. Muhammed JSC, had defined the words "striking out" inter alia thus:
"Striking out a thing, simpliciter means to remove that thing by drawing a line through it that is crossing it out. Striking out a suit/case in its general connotation is the act of discontinuance or termination of the life span of that suit/case either temporarily or permanently"
- PER B.A. GEORGEWILL, J.C.A
“COUNTER CLAIM” AND “SET OFF”- DISTINCTION BETWEEN A “COUNTER CLAIM” AND “SET OFF”
“It is the law, and it needs to be stressed, that a counter claim, though similar to set off, is not entirely the same as a set off. This is so because while a set off must relate to the main claim and thus may not survive the premature technical death or nullity of the main claim and is less likely to stand on its own, it is not so with a counter claim. A counter claim may or may not be related to the main claim. It thus has a life and existence of its own in law. It is an independent action joined to the Statement of Defense, principally for convenience of trial. It would therefore, not be affected by any incompetency or lack of merit of the main claim. It must carry its own cross and be incompetent or lack merit by itself. It does not and cannot bear the cross or fate of the main claim.” PER B.A. GEORGEWILL, J.C.A
COUNTER CLAIM- MEANING OF A COUNTER CLAIM
“A counterclaim is substantially a sort of cross action and not merely a defense to the claims of a Plaintiff. This is why neither a claim nor a counter claim derives its validity from the other. One would not have to consider a claim to see if a counter claim is valid or meritorious. A counter claim has its own pleadings too. In like manner, one would not need to consider a counter claim to determine if a claim is competent or meritorious. Both are like the Rivers of Benue and Niger, which like the principles of law and equity, flow in the same stream but their waters would never mix, as can be seen at the confluence point of intersection of both Rivers in the confluence city of Lokoja. In Dabup V. Kolo (Supra ) @ p. 281, the Supreme Court per Ogundare, JSC had emphatically pronounced inter alia thus:
"The law is very clear on that point. There are numerous authorities that say that a counterclaim is in the same position as an action being itself a cross-action and subject to the same rules of Court as regards pleadings."
See also Gowon V. Ike-Okongwu (Supra) 23; Peterside V. IMB (Nig.) Ltd. (Supra) @ pp. 731 - 731; Nigerian Ports authority V. CGFC (1974) 12 S.C 81; Biode Pharmaceutical Industries Ltd. V. Adsell (Nig.) Ltd. (1986)5 NWLR (Pt. 46) 1070; Chief Ogbonna V. AG. Imo State and Ors (1992) 1 NWLR (Pt 220) 647. U.I.C. Ltd. V. T.A. Hammond (Nig) Ltd. (1998) 9 NWLR (Pt. 565) 340 @ p. 368; Ige V. Farinde (1994) 9 NWLR (Pt. 317) 254.” PER B.A. GEORGEWILL, J.C.A
COUNTER CLAIM - WHETHER THE CONTINUANCE OF A COUNTER CLAIM IS DEPENDENT ON THE COMPETENCE OF A CLAIM
“Having held as above that the word "discontinued" in particular, as well as the word "dismissal" as used in Order 17 Rule 11 of the Rules of the Court below, contemplate and include or cover the meaning of the words "striking out", the question begging for answer is simply this: is the continuance of a counter claim dependent on the competence or presence of a claim? In other words, upon the striking of the claims of a Plaintiff, is the counter claim of a Defendant also liable to be struck out?
In Peterside V. IMB (Nig.) Ltd (1993) 2 NWLR (Pt. 278) 712 . 726 & 733, this Court per Tobi JCA (as he then was but later JSC and may God bless his soul) had succinctly opined inter alia thus:
"...It is therefore not correct that since the Appellant's Statement of Claim was discontinued, the Counterclaim has no basis in law. It is clearly from the Statement of Defense that apart from the denials in paragraphs 1 to 12 therefore, paragraphs 14 to 18 clearly averred to the counterclaim, which, in my view, is separated and distinct, and therefore survives the action of the Appellant, accordingly the case of Macfoy vs. U.A. C. 1 (1961) 3 ALL ER 1169 at 1172 cited by learned counsel does not apply."
- PER B.A. GEORGEWILL, J.C.A
COUNTER CLAIM - WHETHER THE DISMISSAL OF A CLAIM AUTOMATICALLY AMOUNT TO DISMISSAL OF COUNTER CLAIM?
“So, if a claim is withdrawn or applied to be struck out by a Plaintiff against a Defendant with a counter claim of his own, and the claim was consequently struck out by the court, should the counter claim of the Defendant also be struck out merely because the claim was not expressly stated to have been discontinued or stayed or dismissed? I think not!
My lords, to apply to strike out a claim by a Plaintiff, as well as to apply to discontinue a claim would, in my view, result in the same form of action by the court, namely: a striking out and therefore, Order 17 Rule 11 of the Rules of the Court below contemplates and covers a striking out and thus upon the striking out of the Appellant's claim on its own application, the 3rd & 4th Respondents' counter claim remained alive, unaffected and ought to be proceeded with as correctly held by the court below. I agree therefore, with the Respondent's counsel that the difference sought, so assiduously, to be made between striking out and discontinuance, which in most cases ends with an order of striking out, is a distinction without a difference. It is clearly futile.” PER B.A. GEORGEWILL, J.C.A
COUNTER CLAIM- MEANING OF A COUNTER CLAIM
“A counterclaim is a separate, independent and distinct cause of action and the counterclaimant like all other claimants in an action must prove his claim against the person counterclaimed against before obtaining judgment on the counterclaim. See Ogbonna vs. A-G (IMO STATE) (1992) 1 NWLR (PT 220) 647, Walter Vs. Skyll Nig.Ltd (2000) 6 WRN 130 at 134 and Jeric Nig. Ltd Vs. Union Bank Of Nig. Plc (2001) 7 WRN 1 at 18” PER U.A. OGAKWU, J.C.A