Facts:

Mr. Martins Ikediashi (Respondent) who instituted this action as Claimant in the High Court of Lagos State (trial court) operated a current account with the Citi Bank (Appellant) who was the defendant in the trial court. On 14th November, 2003 while the said account was still in credit, he issued a cheque in the sum of Thirty Thousand Naira (₦30,000.00) in favour of one Dr. T.A. Bashorun. The said cheque was subsequently presented for payment by Dr. Bashorun to his bank – United Bank for Africa Plc (UBA) for payment but the cheque was returned unpaid with the word “ACCOUNT CLOSED” endorsed on it. The Respondent on this note instituted an action against the Appellant, and contended that the said endorsement on the cheque is not only a breach of contract but also libelous having been published to Dr. T.A. Bashorun and the staff of the UBA Plc when in fact he was not given notice of any such closure of his account with the Appellant. The Appellant’s case at the trial court was that the endorsement on the cheque which the Respondent was complaining about was premised on the fact that the Respondent’s account with it had earlier been closed and the notice of the said closure given to the Respondent via a letter sent through a Registered post as contained in the agreement. Upon conclusion of trial, the trial court in its considered decision, gave judgment in favour of the Respondent, and held the Appellant for libel, having found not to have given the required notice.

Aggrieved by the decision of the trial court, the Appellant appealed to the Court of Appeal (lower Court), which affirmed the decision of the trial court.