The Court of Appeal in Abuja has overturned the decision made by a Federal Capital Territory High Court, which had dismissed Jaiz Bank's lawsuit seeking the reversal of N226 million against Capricorn Digital Limited.
The appeal, resolved on November 5, 2024, was initiated by the legal representatives of Jaiz Bank Plc and Ammasco International Limited (Appellants) against Capricorn Digital Limited and the financial institution (Respondents) under Appeal No: CA/ABJ/CV/351/2023.
In reference to the court documents, Jaiz Bank formally challenged the decision made by Justice Bello Kawu. Justice Kawu had previously upheld Capricorn's preliminary objection and dismissed the case, characterizing it as a substantial abuse of the legal proceedings.
Jaiz Bank and Ammasco sought a singular remedy, requesting the Court to mandate the reversal of N226,250,000 that was transferred from Ammasco's account at Jaiz Bank to Capricorn's account at Guaranty Trust Bank Ltd. This amount was reportedly part of “a series of fraudulent withdrawals” from Ammasco’s account between September 24 and 25, 2021.
Capricorn’s legal counsel argued for the dismissal of the case, asserting that Jaiz Bank had previously submitted an ex-parte application to the Magistrate Court regarding the same amount. They contended that the lawsuit was filed while proceedings were still ongoing in the Magistrate Court.
On February 15, 2023, Justice Bello Kawu of the lower court concurred with Capricorn’s argument, determining that Jaiz Bank’s legal action represented a multiplicity of suits and constituted an abuse of the court process, leading to the dismissal of the case.
Dissatisfied with this outcome, Jaiz Bank’s attorney, Onochie C. Onwuegbuna Esq., appealed to the higher court, asserting that the N226,250,000 had been under Capricorn's control since September 2021, and the appellants had been unable to retrieve it due to the dismissal of their initial suit.
He stressed that when a party claims that the court process has been abused, it is essential to present the supporting facts to the court via an affidavit and accompanying documentary evidence.
He refuted the claim of "multiplicity of suits," asserting that there was no evidence presented to the court indicating the existence of any other lawsuit concerning the same subject matter as of October 7, 2021.
“My Noble Lords, we respectfully submit that the evidence placed before the lower court by the second respondent (Capricorn) in support of its preliminary objection fell short of what was required, as there was no evidence whatsoever to establish that any other suit was pending as of October 7, 2021, when Suit No: FCT/HC/BW/CV/281/2021 was filed,” he submitted, asking the appeal court to quash the trial Court’s ruling.
In a statement, Capricorn’s attorney, Mobolaji Kuti Esq., indicated that on September 27, 2021, the appellants submitted an ex-parte application to the Magistrate Court in FCT, Abuja, requesting an order for GTB and Capricorn to reverse what they claimed was a fraudulent transfer from Ammasco’s account. He noted that the Magistrate Court approved this application on September 29, 2021.
Kuti contended that while the case before the Magistrate Court was still active, the appellants simultaneously initiated the current lawsuit (which has resulted in this appeal) involving the same parties and issues at the lower court on October 7, 2021, which he argued constituted an abuse of the court process.
“While the suit at the Magistrate Court and the ex-parte orders made therein were pending, the appellants continued their abuse of process by moving the trial court on October 21, 2021, to grant similar ex-parte orders over the same subject matter between the same parties,” Kuti argued.
Capricorn announced that it submitted a notice of preliminary objection to the FCT court on November 23, 2021, contending that the case should be dismissed due to an abuse of the judicial process.
In a ruling dated February 15, 2023, Justice Bello Kawu of the trial court upheld Capricorn’s objection.
Court of Appeal Findings
In a judgment delivered virtually on November 5, 2024, a three-judge panel of the Court of Appeal determined that Capricorn did not present any evidence indicating that a case was ongoing at the Magistrate Court following the proceedings on September 29, 2023, when the ex-parte order was issued. The appeal court characterized Capricorn’s assertions as “mere oral claims lacking substantiation.”
The court noted that if a case was indeed pending, Capricorn’s legal representatives should have submitted evidence of the next scheduled court date in the lower courts. “It is abundantly clear that Capricorn, which accused Jaiz Bank of abusing the court process, failed significantly to demonstrate that any case was pending at the Magistrate Court,” stated the appeal court.
The court concluded, “I find that there is no other pending case in any court, especially at the Magistrate Court in FCT, that would constitute an abuse of the suit at the lower court.”
Consequently, the appeal court overturned the lower court's decision and directed that the case be returned to the High Court, FCT, for trial and consideration of the merits before a different judge. Additionally, a cost of N200,000 was awarded to the appellants against the respondents, jointly and severally.