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The Commercial Case Law Index is a collection of judgments from African countries on topics relating to commercial legal practice. The collection aims to provide a snapshot of commercial legal practice in a country, rather than present solely traditionally "reportable" cases. The index currently covers 400 judgments from Uganda, Tanzania, Nigeria, Ghana and South Africa.
Get started on finding judgments that are relevant to you by browsing the topic list on the left of the screen. Click the arrows next to the topic names to reveal a detailed list of sub-topics. Most judgments are accompanied by a short summary written by subject-matter expert postgraduate students from the University of Cape Town.
Diamond Bank Limited v Ugochukwu (SC. 223/2009)[2016] NGSC 52 (12 February 2016) (SC. 223/2009) [1960] NGSC 1 (11 February 2016); 
CL Index Jurisdiction International law Human Rights Bank-Customer Relationship Bank Banking, Finance and Insurance LawThe appellant is a commercial bank and the respondent a holder of several accounts in the bank. The Imo State Task Force for the Recovery of Public Property and Funds (the task force) alleged that the respondent used contracts to defraud the Imo State government and paid the proceeds into the said accounts with the appellant.
The respondent admitted that the moneys in the two accounts operated with appellant were payments he received from the contracts which he failed to perform. The task force ordered the transfer and freezing of funds in these accounts pursuant to the Recovery of Public Funds and Property (Special Provisions) Edict, 1985, section 18(1). After hesitation and unfruitful communication with the respondent, the appellant consequently complied with the order of transfer and freezing of the funds in the account.
The courts below held that the action as constituted was a banker/customer relationship. Therefore, the court had jurisdiction to hear the matter.
However, this court held that the matter went beyond an ordinary banker/customer relationship. The freezing of the account of the respondent and subsequent transfer of the funds therein to government's’ bank account were acts done under Edict No. 7 of 1985. Thus, the cause of action was consequently not subject to litigation.
Minister of Finance v Oakbay Investments (Pty) Ltd and Others; Oakbay Investments (Pty) Ltd and Others v Director of the Financial Intelligence Centre (80978/2016)[2017] ZAGPPHC 576 (18/08/2017) CL Index Bank-Customer Relationship Bank Banking, Finance and Insurance Law Declaratory Relief Civil RemediesThis issue was whether the Minister of Finance (applicant) has powers to intervene where the respondent's (Oak Bay Investments) bank accounts were being closed. In deciding the case, the court employed the Superior Court Act 10 of 2013 (the act) which empowers the court to enquire into and determine any rights and obligation a person can claim.
The court held that the enquiry envisaged by s21(c) of the act encompasses a two-legged enquiry. The court must be satisfied that the applicant is a person interested in an existing, future or contingent right and whether the case is a proper one in which to exercise its jurisdiction.
The court ruled that there is no statute that empowers a minister to intervene in a private bank client dispute. Banks can terminate a relationship with a client at their own discretion. It observed that there was no uncertainty in regard to the relief sought by the applicant as there was a court precedent relating to relief being sought. The court held that the Minister of Finance through his counsel knew very well that he has no power to intervene. The court ruled that it is not obliged to grant the order sought by the minister because there was no uncertainty in regard to the legal question. It ruled further that to allow the relief sought would breach the principal of separation of powers as it will amount to judiciary to stray into domain of the executive.
Annex Distribution (Pty) Ltd and Others v Bank of Baroda (52590/2017)[2018] ZAGPPHC 6 (12/03/2018) CL Index Interim Interdict Injunctions and interdicts Civil Remedies Bank-Customer Relationship Bank Banking, Finance and Insurance Law Interdict Injunctions and interdicts Civil RemediesThe applicants sought an interim interdict against the respondent bank, with which they had a bank-client relationship, to restrain it from terminating the operations of the applicants’ banking facilities.
The court considered whether courts could direct the respondent to continue its operations in the country against its will. The court held that the respondent’s decision to exit the country’s banking sector is one that the courts cannot interfere with.
The court relied on the respondent’s constitutional right to trade, which also entails the election of not utilising such right. The court remarked that the respondent’s decision to cease operations in the country rested on commercial considerations which were highlighted in para 15 of the judgement.
The respondents right to or not trade supersedes any right the applicant may have, thus the application was dismissed with costs.
Equitorial Trust Bank Ltd v Agada (CA/YL/13/2015)[2016] NGCA 14 (27 June 2016) (CA/YL/13/2015) [2016] NGCA 14 (26 June 2016); CL Index Bank-Customer Relationship Bank Banking, Finance and Insurance Law Evaluation of Evidence Evidence Law Jurisdiction International law Human RightsThe matter involved an appeal over a decision made about a contractual dispute between the appellant and the respondent.
The first issue was whether the trial court had jurisdiction to consider a contractual matter between an individual banker and his bank. The court engaged with the interpretation of the relevant constitutional provision (s 251(1)(d)) as given by the Supreme Court and established that it granted concurrent jurisdiction between federal and state High Courts in customer-bank matters. The court reasoned that the provision is an exception to the exclusive jurisdiction enjoyed by federal courts. It concluded that the trial court had jurisdiction, though concurrent, to decide the matter at issue.
The second issue was whether there had been sufficient proof at the trial court to support judgment in favour of the respondent. Acknowledging that this issue required the court to embark on a re-evaluation of the evidence, the court emphasised that interference could only be done if it is shown that the trial court’s judgment was perversely flawed. After reviewing the trial court processes, the court concluded that there was a failure to properly evaluate the totality of all evidence, particularly determining what was admissible or inadmissible, before making its decisions. Since there was proof of an absence of a nexus link between the conclusions of the court and the proven facts, the appellate court could thus interfere and re-evaluate the evidence. The trial court’s judgment was therefore found to be fraught with error and was set aside.
Corporate Affairs Commission v United Bank for Africa Plc and Others (CA/L/443A/2014)[2016] NGCA 76 (30 March 2016) (CA/L/443A/2014) [2016] NGCA 76 (29 March 2016); CL Index Fiduciary Duty of A Bank Fiduciary relationships Fiduciary Duties Bank-Customer Relationship Bank Banking, Finance and Insurance LawThe issue was whether the Corporate Affairs Commission (appellant) has powers to inspect affairs of banks (respondents) without a court order.
The case emanated from decision of the trial judge declining to grant an order directing the respondents to comply with the appellant inspectors.
The appellant argued that the Companies and Allied Matters Act (the act) empowers it to carry out an inspection without the need of a court order. It pointed out that the trial judge erred by holding that the appellant require a court order to investigate the respondents.
The respondents opposed the appeal by pointing out that the appellant can only carry out an inspection on the respondents through a court order and that the appellant had no power to appoint inspectors. They further argued that allowing an inspection by the appellant amount to breach of bank/client confidentiality.
The court ruled that the act allows the appellant to appoint investigators at the instances of company members or through a court order. It held that s 314(1) of the act empowers the appellant to investigate affairs of the banks without the need of a court order. The court ruled that the trial judge erred and the appeal was upheld.
Guaranty Trust Bank PLC v Fox Glove Nigeria Limited (CA/L/620/2013)[2016] NGCA 88 (24 March 2016) (CA/L/620/2013) [2016] NGCA 88 (23 March 2016); CL Index Breach of Contract Contract Law Termination of Contract Contract Law Bank-Customer Relationship Bank Banking, Finance and Insurance Law Bank Guarantee Bank Banking, Finance and Insurance LawThe issue was whether the unilateral withdrawal of a bank guarantee by the appellant amounted to breach of contract.
The appeal emanated from judgement of trial court which found that the withdrawal of a bank guarantee by the appellant
was in breach of contract. The appellant had advanced a bank guarantee to the respondent to guarantee its trading capacity with MTN, a communications company for which it was a distributor. The parties agreed that the contract can only be terminated by giving 60 days’ notice period. The appellant unilaterally terminated the contract.
The respondent successfully challenged the termination in a lower court and was awarded damages amounting to ten million Naira with pre-trial interest. The appellant appealed the decision on the basis that it withdrew the bank guarantee after the respondent breached the agreement. It argued that the respondent’s claim was premised on negligence which had not been proven.
The respondent maintained that the appellant breached the contract by withdrawing the bank guarantee resulting in MTN cancelling its distribution agreement with the respondent. It further argued the delivery of termination was never proved.
The court held there was no evidence to show that the termination notice was delivered to the respondent. It found that the withdrawal of the bank grantee amounted to a breach of contract. The court ruled that it has no power to interfere with damages awarded by the lower court unless special circumstances exist. It found that the ten million award was too excessive warranting it to intervene.
The appeal was dismissed. General damages were reduced from ten million Naira to five million Naira.
First City Monument Bank PLC Vs Dickson (CA/l/104/2014)[2016] NGCA 96 (12 July 2016) (CA/l/104/2014) [2016] NGCA 96 (11 July 2016); CL Index Counterfeit Currency Currency Banking, Finance and Insurance Law Bank Deposit Bank Banking, Finance and Insurance LawThe dispute emanated from reversal of a bank deposit by the appellant bank from the respondent’s bank account. The respondent deposited US $51,700 in to his bank account which was reversed by appellant bank on the basis that the money deposited was counterfeit currency. The respondent successfully challenged the reversal and was awarded damages amounting to 1 million Naira.
The appellant appealed against the ruling on the basis that the trial judge erred. The bank maintained that the currency deposed with bank was counterfeit. It based its argument on the failure by the respondent to disclose the source of the money and the verification of the money at its head office which proved that the money was counterfeit.
The respondent opposed the appeal on the grounds that there were not present at the verification of the currency and that it was the appellant who bears the onus of proving that the currency was not authentic. He argued that the bank staff verified the authenticity of the currency when he made the deposit.
In deciding the case the court held that the was no evidence to show that deposit acceptance was subjected to authentication. It ruled that deposit of the US $51,700 created a rebuttable presumption that authentic dollars were deposited. It pointed to the teller stamp and initials as consituting prima facie proof of payment and after producing that the respondent need not to go further. The appeal was thus dismissed.