*Justice Alexander Owoeye of the Federal High Court, in Lagos, orders Zenith Bank Plc to pay Christomax Concept Limited N30 million as general and aggravated damages for fraudulently and illegally debiting the company’s accounts, breach of fiduciary duty, loss of business, goodwill, embarrassment, and hardship caused to the plaintiffs

Alexander Davis | 绿帽献妻

Justice Alexander Owoeye of the Federal High Court, in Lagos, Nigeria, has ordered Zenith Bank Plc to pay Christomax Concept Limited N30 million as general and aggravated damages for fraudulently and illegally debiting the company’s corporate accounts.

It was gathered the plaintiffs, Christomax Concept Limited, Chris Integrated Company Limited, and Mr. Christopher Adayi, had filed Suit Number FHC/L/CS/2039/2024 through Adetunji Adedoyin-Adeniyi of AAA Chambers, their lawyer, seeking a declaration that the commercial bank鈥檚 failure to refund the fraudulently deducted sum constituted a breach of fiduciary duty.

They also prayed the court to grant an order compelling Zenith Bank to immediately refund the N10.6 million.

The plaintiffs as well sought an order of the court for the bank to write off the balance of a loan granted to the 1st plaintiff May 27, 2022, since the illegal deductions were not refunded.

Besides, they requested an injunction restraining the leading financial institution from taking any action to recover the loan or from harassing or intimidating the plaintiffs.

The plaintiffs equally sought a directive from the Federal High Court Lagos, for Zenith Bank Plc to pay N500 million in damages for breach of fiduciary duty.

Zenith Bank’s defence

In its defence, Zenith Bank, however, argued that the suit was wrongly filed as an Originating Summons instead of a Writ of Summons and should be struck out, report said.

The bank also contended that the N15 million allegedly deducted from.the customer’s accounts was partially recovered, with N5,068,290.00 salvaged from certain Kuda Microfinance Bank (MFB).

Zenith Bank further argued that the court declaratory reliefs could not be granted without solid evidence, urging the court to dismiss the plaintiffs鈥� claims.

Court rules Zenith Bank’s act ‘oppressive’, fails in fiduciary duty

Ruling in the case, Justice Owoeye, in his judgment, noted Zenith Bank Plc had admitted to issuing a debit card linked to the plaintiffs鈥� accounts.

The Judge affirmed that as the card issuer, the commercial bank was responsible for authorising transactions made with the card, taking action in case of fraud to stop further unauthorised use, and reversing fraudulent transactions when advised or directed.

Justice Owoeye also indicted the bank for failing to act after the fraudulent transaction was reported to it July 13, 2022.

The Judge described the conduct of Zenith Bank in this regard as 鈥渙ppressive and high-handed”.

The Nigerian court, therefore, ruled that the bank鈥檚 failure to refund N10,631,710.00, which was fraudulently deducted from the plaintiffs鈥� accounts, resulted in loss of business and goodwill, amounting to a breach of fiduciary duty owed by the bank.

Justice Owoeye ruled in favour of the plaintiffs and ordered as follows:

An immediate refund of N10,631,710.00 deducted from the company’s accounts.

A payment of N30 million in damages for breach of fiduciary duty, loss of business, goodwill, embarrassment, inconvenience, and hardship caused to the plaintiffs.

It is noted that the judgment, again, has reaffirmed banks鈥� duty to protect customers鈥� funds and take swift action in fraud cases in the country.