Facts:

The Respondent is a limited liability company who carries on business as Insurance Loss Adjusters, as well as Marine Insurance and Cargo Surveyors business. The Respondent maintained an account with funds, with the Appellant, Polaris Bank, formerly Skye Bank. Despite the fact that the Respondent had funds in its account with the Appellant, the Appellant refused to honour the cheques of “the Respondent. On reason that the account was either blocked or the drawer’s attention was required.

The Respondent made inquiries from officials of the Appellant and was informed by those officials that the reason for the account being blocked was as a result of a Court Order of the Federal High Court in Suit No. FHC/L/CS/125/2002 between Godwin Ukachukwu C. Njokwubi v. City Loss Adjusters (Nigeria) Limited & Anor. All efforts made by the Respondent to resolve this issue proved abortive. On this note the Respondent instituted an action at the Lagos State High Court (lower Court) praying the lower Court for (i) a declaration that the action of the Appellant in freezing its account and refusing to honor its cheques is arbitrary, unjustified, unwarranted, unlawful, and constitutes a flagrant and reckless breach of its banking obligation to the Respondent; (ii) an order of perpetual injunction restraining the Appellant, it’s servants, employees or agents from interfering with the Respondent’s operation, running, the management or access to its funds in the said branch of the Appellant; and (iii) an order compelling the Appellant to, pay the Respondent the sum of ₦15 million as compensatory and general damages.
Upon conclusion of the trial, the lower Court, accordingly, found that the Appellant had breached its contract with the Respondent, and therefore gave judgment in favour of the Respondent.

Dissatisfied with the judgment, the Appellant via a Notice of Appeal appealed to the Court of Appeal.