CASE DIGEST - BANKING; BANKER/CUSTOMER RELATIONSHIP: CHEQUE: CAN A BANK BE GUILTY OF THE TORT OF CONVERSION AND LIABLE IN DAMAGES FOR FAILING TO HONOUR A CHEQUE DRAWN ON IT?

RBF ENERGY RESOURCES LIMITED v. QUAD MARINE OIL AND GAS LIMITED & 3 ORS.

COURT OF APPEAL (LAGOS DIVISION, NIGERIA)

(OGBUINYA; DANIEL-KALIO; AKINBAMI, JJ.CA)

Background Facts

RBF Energy Resources Ltd. (Cross-Appellant), a dealer in petroleum products especially in the downstream sector of the oil and gas industry, was a high-profile customer of Intercontinental Bank Plc which metamorphosed into Access Bank (4th Cross-Respondent). In 2007, the 4th cross-respondent granted an initial facility of N40M, which it later increased to N80M, N250M and N350M, to the Cross-appellant on certain securities. In 2006, at the behest of the 2nd Cross-Respondent, the Cross-Appellant made her a commission agent on the sale of its petroleum products. In 2008, the Cross-Appellant entered into a contract of the supply of petroleum products to the 1st Cross-Respondent through the persuasion of the 2nd and 3rd Cross-Respondents who were the managing director and chairman/major
promoter of the 1st Cross-Respondent respectively.