Facts:

This is an appeal against the decision of the High Court of Lagos state (trial Court), Lagos Division delivered on the 27th of October 2005 by O. A. Ipaye, J.

The Appellant (as Claimant) who is a registered limited liability company, was a current account customer of the Respondent (as Defendant), who is a registered financial banking institution in Nigeria, at its branch in Ikeja, Lagos.
On the 10th of January 2002, the appellant drew a cheque for the sum of ₦500,000.00, in the name of Mr Kunle Adenipekun, its managing director, on its account with the Respondent, which was to be paid to Gateway Bank Pic. Gateway Bank Plc then sent the cheque for clearing but the Respondent refused to pay it for the reason that it was a forged instrument. On enquiry, the appellant was informed by the respondent that a similar cheque for the sum of ₦500,000.00 was presented and the sum paid to the holder on the 11th of January 2002. The Respondent further wrote a letter to the Gateway Bank Pic wherein it informed it that the Appellant’s cheque of 10th January 2002 was forged, and it should not be paid, and that the payee should be arrested and his account blocked. On this note, the Appellant alleged that it was the respondent who negligently paid the said sum of ₦500,000.00 to the presenter of that cheque as it breached normal banking rules and regulations. It further viewed the content of the letter written to Gateway Bank Plc as defamatory of it and asserted that the aforesaid matters caused damages not only to its credits but also to its reputation, and therefore sought declaratory reliefs against the Respondent.

The Respondent in reaction to the Appellant’s claim joined issues, wherein it denied any liability whatsoever, and further pleaded negligence and fraud against the appellant in the manner it kept and used its cheque book. It, therefore, urged the lower court to dismiss the suit as lacking in merit and being frivolous.

Following the contentious pleadings, the trial court had a full-blown determination of the matter, and in a considered judgement, the trial court dismissed the Appellant’s suit.

Aggrieved by the decision of the trial Court, the Appellant via a Notice of Appeal, appealed to the Court of Appeal.