Facts:

The appellants filed a suit against the respondents at the Federal High Court, Lagos division claiming damages for breach of contract and negligence. The suit was predicated on the allegation by the appellants that they entered into separate agreements with the respondents at different times in 2001, for the transportation of the cargo by sea. The appellants contended that the respondents failed to deliver their cargo on two separate occasions. The first agreement was alleged to be a consignment of goods worth about N50,990,900.00 (Fifty Million, Nine Hundred and Ninety Thousand, Nine Hundred Naira) while the total value of the consignment for the second agreement was put at N35,709,143.00 (Thirty Five Million, Seven Hundred and Nine Thousand, One Hundred and Forty Three Naira). The appellants further alleged that they paid the defendants the sum of $2,440.00 (Two Thousand, Four Hundred and Forty United States Dollars) and $1,220.00 (One Thousand, Two Hundred and Twenty United States Dollars), being cost of shipment for the transactions respectively. After the due date of the arrival of the cargo, the appellants
wrote to the respondents enquiring why their consignment was yet to be received. The respondents informed the appellants that the cargo was on board another ship called Torm Alexandra involved in an accident on the 25th July 2001 which resulted in total loss of the cargo but that the appellants should file their claims and forward same to the relevant agents for processing.

In compliance with the directive of the respondents, the appellants through their solicitors sent the bills of lading and receipts to the 1st respondent’s claims department on the 26th April, 2002. Dissatisfied with the manner in which the respondents handled the matter, the appellants on the 28th June, 2002 filed their suit against the respondents. After hearing the matter, the trial judge dismissed the claims of the appellants by relying on the evidence of the respondents that the matter had been litigated before a court in Liberia, and that the court gave judgment in favour of the respondents. Even though the appellants were not parties to the matter litigated in the Liberian court, the trial judge relied heavily on the exhibit
containing the judgment to hold that the matter was res judicata. The appellants were aggrieved and filed a notice of appeal at the Court of Appeal, Lagos Division urging it to reverse same.

One of the issues for determination is whether the totality of the evidence adduced by the respondents and relied on by the trial court is not hearsay evidence contrary to the provisions of the Evidence Act and various judicial authorities.