Facts:

The Appellants via a Writ of Summons and Statement of Claim instituted an action against the Respondent seeking the following reliefs:

i. “€12,677.28 pence pounds sterling (Twelve Thousand, Six Hundred and Seventy-Seven Pounds Sterling and Twenty-Eight Pence) or its naira equivalent being the total value of three Letters of Credit established for 2nd Plaintiff – Foremost Enterprises (Nigeria) Ltd (Account No. 5209 Balogun Branch) in 1983 which the Defendant failed to remit to the beneficiary, plus interest thereon at 12% per annum from 1st January, 1984 until the amount is fully paid, less the sum of N36,000.00 outstanding on the 3rd Plaintiff’s account No. 1591 at Balogun Branch.

ii. Return of the 1st Plaintiff’s Deed of Conveyance on his property at 15, Mafowoku Street, Akoka, Lagos and his Life Insurance Certificate deposited to secure overdraft on 3rd Plaintiff’s Account No. 1591 at Balogun Branch, OR An Order that the Defendant at its own expense obtain for the Plaintiff, Certified True Copies if these documents cannot be found.

iii. N100,000.00 (One Hundred Thousand Naira) damages for negligence and/or failure of the Defendant in remitting the said €12,677.28 pence pounds sterling to beneficiary (Survey Exporters (Africa) Limited of Liverpool).

iv. A sum of N412,000.00 (Four Hundred and Twelve Thousand Naira) being the amount the Plaintiff spent to buy at the alternative market the €4,297.22 pence on Letter of Credit No. O/CR/83/636 which the Defendant failed or neglected to remit to Plaintiff’s overseas suppliers.

v. A sum of N60,000.00 (Sixty Thousand Naira) being the expected profit the Plaintiff lost due to the cancellation of the orders upon which Letters of Credit Nos. O/CR/83/609 and O/CR/83/736 was opened.

vi. An order declaring null and void and cancelling any debits entered against the 2nd Plaintiff’s account No. 5209 as a result of changes in the exchange rate of the Naira concerning the said Letters of credit.”

The Appellants’ case is that sometimes in 1983, at the request of the 1st Appellant, the Respondent opened three (3) Letters of Credit for the 2nd Appellant in the total value of €12,677.28 (Twelve Thousand, Six Hundred and Seventy-Seven Pounds Sterling and Twenty-Eight Pence) through its Account No. 5209 made up as follows:

(i) Letter of Credit No. O/CR/83/636 for €4,297.22 pence

(ii) Letter of Credit No. O/CR/83/609 for €4,190.03 pence

(iii) Letter of Credit No. O/CR/83/736 for €4,190.03 pence.

The Appellants stated further that the said sum of €12,677.28 pence was to be remitted to Survey Exporters (Africa) Limited of Liverpool, United Kingdom for the importation of building paints. That these Letters of Credit opened on the account of the 2nd Appellant were fully backed up by cash and they were to mature in 1984. The Appellants further stated that the Respondent failed to remit the funds under the Letters of Credit despite various letters of demand written by the Appellants and the Exporter in the United Kingdom. That when the issue was becoming rather embarrassing, the 1st Appellant had to source for the Naira equivalent of €4,297.20 (covered by Letter of Credit No. O/CR/83/636) to pay the representative of the Exporters at the black market which totalled N412,000.00.

The Appellants stated further that in view of the inability of the Respondent to remit the monies under the three Letters of Credit and having settled one of them personally, the overseas suppliers cancelled the two other Letters of Credit namely: – Nos. O/CR/83/609 and O/CR/83/736 for €4,190.03 respectively and the 1st Appellant lost the estimated profit of N60,000.00 (Sixty Thousand Naira) he ought to have made on the two Letters of Credit. According to the Appellants, the Account in the name of 3rd Appellant Adebayo Makanjuola Trading Company Limited (Account No. 1591) was in credit up till 1984 but was later on, at a debit balance of N56,000.00 due to loan/credit facilities granted by the Respondent to the 3rd Appellant on its account. The Appellants stated further that the indebtedness was reduced to N36,000.00 by the end of August 1992. In order that the outstanding indebtedness in the 3rd Appellant’s account could be settled and since the Respondent was holding the funds meant as Naira cover for the Letters of Credit, the 1st Appellant wrote to the Respondent to credit the account of the 3rd Appellant with the funds in order to offset the indebtedness on the account and to also return the title deed and the Life Insurance Policy used as security for the banking facility.

The Appellants alleged that the Respondent neither credited the account of the 3rd Appellant with the funds nor did it return the 1st Appellant’s title deed and Life Insurance Policy. Rather than do the needful, the Respondent by a letter dated 17th April 1989 written by its Assistant Manager (Refinancing) and addressed to their Solicitors inter alia, asked them to confirm from the beneficiaries if they have received the proceeds as the letters of credit had been refinanced. That sequel to the Respondent’s letter addressed to the Solicitors acting on their behalf, by a letter dated 22nd May, 1989, they wrote directly to the Respondent to inform her that the transaction still remained outstanding. The Appellants further stated that the Respondent still refused to remit the funds under the Letters of credit to the overseas suppliers, failed to return the title deed and Life Insurance Policy to the 1st Appellant.

The Respondent in its defence denied knowing the 2nd and 3rd Appellants and that it was the 1st Appellant who opened two accounts in the Business names of Foremost Enterprises and Adebayo Makanjuola Trading Co. The Respondent also filed a Counter-Claim for the alleged indebtedness of the 1st Appellant under the two (2) Accounts and claimed interest at the rate of 21% per annum to be calculated from the 1st of April, 1992 and 1st June 1992 respectively till the judgment of the trial court is delivered and at the same rate from the date of judgment till the whole sum is liquidated.

Upon the close of trial and filing of final addresses by counsel for the parties, the learned trial Judge dismissed the claims of the Appellants in its entirety on the following grounds:

1. That the 2nd and 3rd Appellants lacked the necessary locus standi to institute the action.

2. That the 1st Applicant’s claims were statute-barred; and

3. That the claim for N412,000.00, being a special damage, was not strictly proved.

The Counter-Claim of the Respondent was also dismissed because the Respondent did not lead any evidence to prove it.

Dissatisfied with the Judgment of the lower Court, the Appellants appealed to the Court of Appeal.