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FORTUNE INTERNATIONAL BANK PLC V. PEGASUS TRADING OFFICE (GmbH) & ORS.

(2004) JELR 45016 (SC)

Supreme Court  •  SC.144/2001  •  30 Jan 2004  •  Nigeria

Coram
IDRIS LEGBO KUTIGI JSC; ALOYSIUS IYORGYER KATSINA-ALU JSC; UMARU ATU KALGO JSC; SAMSON ODEMWINGIE UWAIFO JSC; DENNIS ONYEJIFE EDOZIE JSC;

Judgement

UWAIFO, J.S.C. (Delivering the Leading Judgment): The plaintiffs (two German companies) sued the defendants for breach of contract arising from two letters of credits (LCs) opened by the 1st defendant bank at the instance of the 2nd defendant in favour of the plaintiffs for the importation of dairy product known as "Royal Evaporated Milk". The LCs were confirmed irrevocable up to 35% of their value. This meant that the amount involved was to be paid at sight. As to that, there is no dispute; the 35% cost of the goods was accordingly paid. The difficulty was with the 65% of the LCs which by description was unconfirmed irrevocable. The amount involved was to be paid by the 1st defendant/bank 90 days after presentation of documents to it. That amount was not paid hence the plaintiffs (the sellers of the goods sued the 1st defendant/bank (the issuing bank) and the 2nd defendant (the buyer) claiming as follows:

(a) Cost and value of goods supplied ............ DM 540.000

(b) Legal action i…

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