ADMISSION AGAINST INTEREST

An admission against interest, in order to be valid in favour of the adverse party, must not only vindicate or reflect the material evidence before the court; it must also vindicate and reflect the legal position. Where an admission against interest does not vindicate or reflect the legal position, it will be regarded for all intents and purposes as superfluous. And a court of law is entitled not to assign any probative value to it.

– Tobi JSC. Odutola v. Papersack (2007)

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HOW TO ARRIVE AT RATE OF INTEREST IN COMMERCIAL CASES

In TATE and LYLE FOOD AND DISTRIBUTION LTD. V. GREATER LONDON CONOI AND ANOTHER. 1981 3 All E.R. 716 Forbes J on how to arrive at the rate of interest in Commercial cases held that one must not look at the profit which the Defendant wrongfully made out of the money he withheld but at the cost to the plaintiff of being deprived of the money which he should have had. In my view interest in commercial cases of this nature is not awarded against the Defendant as a punitive measure for having kept the plaintiff out of his money but as an attempt to achieve restitution in intergrum.

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INTEREST IS NOT PAYABLE ON ORDINARY DEBT

Ordinarily, interest is not payable on ordinary debt in purely commercial transaction, in the absence of a term to that effect expressly or impliedly in the contract or mercantile usage or custom of the parties or as may be contained in a statute. It may also be in place through fiduciary relationship between the parties. See; RNA Ekwunife V. Wayne (West Africa) Ltd. (1989) 5 NWLR (Pt.122) 422 at 455.

— O. Ariwoola, JSC. African Intl. Bank Ltd. v Integrated Dimensional System (2012) – SC.278/2002

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PARTY WITHHELD MONEY DUE, INTEREST WILL FLOW

It is also trite in law that when in a business transaction like the one under discourse a party is found to have withheld money due to the other party for sometime after being due, it is a natural consequence that flows from the default that interest be paid for the period of default until liquidation. I rely on ACME Builders Ltd v Kaduna State Water Board (1999} 2 SC 1 at 9.

— M. Peter-Odili, JSC. Cappa v NDIC (2021) – SC.147/2006

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CLAIM FOR INTEREST MUST BE SPECIFICALLY PLEADED

Also, the law is now clear that a claim for interest must be specifically pleaded. Some of the pleading requirements may be summarized as follows: If the claim for interest is under a contract, express or implied or under mercantile usage, the relevant contractual term or any other relevant facts and matters relied upon for the entitlement must be specifically pleaded. If the plaintiff claims interest under the equitable jurisdiction of the court, he must plead all the relevant facts and matters relied upon to support such claim (See Bullen and Leake and Jacobs, (13th Ed.) pp. 567 – 8). It is evident that the appellant had completely ignored these requirements.

— Ayoola, JSC. Saeby v. Olaogun (1999) – SC.261/1993

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CHANGE IN THE RATE OF INTEREST MUST BE COMMUNICATED

Any change in the rate of interest should be brought to the attention of the customer by the banker as a condition for the banker to change the agreed rate of interest. [Okolo v. U.B.N.Ltd (1998) 2 NWLR (Pt. 539) 618 referred to]

– L.A. Ayanlere v. Federal Mortgage Bank of Nig. Ltd. (1998) – CA/K/186/96

EVEN WHERE INTEREST IS NOT CLAIMED, COURT MAY AWARD INTEREST

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ADMISSION AGAINST INTEREST

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HOW TO ARRIVE AT RATE OF INTEREST IN COMMERCIAL CASES

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INTEREST IS NOT PAYABLE ON ORDINARY DEBT

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PARTY WITHHELD MONEY DUE, INTEREST WILL FLOW

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CLAIM FOR INTEREST MUST BE SPECIFICALLY PLEADED

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CHANGE IN THE RATE OF INTEREST MUST BE COMMUNICATED

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