Justice Alexander Owoeye of the Federal High Court in Lagos has ordered Zenith Bank Plc to pay Christomax Concept Limited and two others a total sum sum of N40, 631, 710 million, as general and aggravated damages for fraudulently and illegally debiting the firms’ accounts.
Other plaintiffs in the suit alongside Christomax Concept Limited are; Chris Integrated Company Limited and their alter ego, Mr. Christopher Adayi.
The plaintiffs have filed the suit number FHC/L/CS/2039/2024, against Zenith Bank through their lawyer, Adetunji Adedoyin-Adeniyi, of AAA Chambers and asked for “a declaration that the bank’s failure to refund the fraudulently deducted sum constituted a breach of fiduciary duty”.
The Plaintiffs also asked gorr an order compelling Zenith Bank to immediately refund the N10.6 million.
The plaintiffs in their originating motion pursuant to Section Section 6(6) of the Constitution of the Federal Republic of Nigeria 1999 (as amended); Order 3 Rules 6 and 9 of the Federal High Court (Civil Procedure) Rules 2019 and under the court’s inherent jurisdiction, also asked for the followings; “an order for the bank to write off the balance of a loan granted to the 1st plaintiff on May 27, 2022, since the illegal deductions were not refunded.
“An injunction restraining Zenith Bank from taking any action to recover the loan or from harassing or intimidating the plaintiffs.
“A directive for the bank to pay N500 million in damages for breach of fiduciary duty.”
However, Zenith Bank in it’s defence filed by it’s lawyer, Ohimai Ovbioise, argued that the Plaintiffs’ suit was wrongly filed as an Originating Summons instead of a Writ of Summons and ought to be struck out.
The bank also contended that the N15 million allegedly deducted was partially recovered, with N5, 068, 290. 00 salvaged from Kuda Microfinance Bank.
The bank further argued that declaratory reliefs could not be granted without solid evidence and urged the court to dismiss the plaintiffs’ claims.
Justice Owoeye, in his judgment, pointed out that Zenith Bank had admitted to issuing a debit card linked to the plaintiffs’ accounts.
He stated that as the card issuer, the bank was responsible for authorizing transactions made with the card, taking action in case of fraud to stop further unauthorised use, and reversing fraudulent transactions when advised or directed.
The judge also criticized the bank for failing to act after the fraud was reported on July 13, 2022, describing its conduct as “oppressive and high-handed.”
The court also ruled that the bank’s failure to refund N10,631,710.00, which was fraudulently deducted from the plaintiffs’ accounts, resulted in loss of business and goodwill, amounting to a breach of fiduciary duty owed by the bank.l
The court ruled in favour of the plaintiffs and ordered: “an immediate refund of N10, 631, 710. 00 deducted from their 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.
This judgment reaffirms banks’ duty to protect customers’ funds and take swift action in fraud cases.
