Facts:

The Respondent placed various sums of money in the appellant’s bank on the basis of a written agreed interest rate and default penalty. At the end of the placement term, the appellant made some payments to the respondent as interest and default penalty. Later, the Respondent stated that the interest paid was not computed at the agreed rate and that the penalty paid was not computed on a daily basis as agreed. So the respondent demanded further interest and default penalty payments from the appellant. The appellant denied any liability and asserted that it had paid all the demanded sums of money due to the respondent. Aggrieved by the appellant’s response, the respondent commenced an action at the High Court of Abuja (trial Court) for various sums of money as balance interest and default penalty, N6 million as cost of prosecuting the suit, and exemplary damages.

At the conclusion of the hearing, the trial Court dismissed the claims of the respondent. Dissatisfied, the respondent appealed to the Court of Appeal, which found and held that there was no convincing evidence of the asserted verbal or oral negotiations subsequent to the written agreement between the parties and that the appellant’s failure to immediately request for the balance of the penalty calculated on basis of daily default did not amount to a waiver of the balance payment. Consequently, the Court of Appeal allowed the respondent’s appeal, set aside the trial court’s judgment, and entered judgment in favour of the respondent.

Dissatisfied with the decision of the Court of Appeal, the appellant appealed to the Supreme Court.