STANBIC IBTC BANK PLC V. L.G.C. LTD. (2025) 13 NWLR (PT. 2002) 361
ON WHEN PRE-JUDGMENT INTEREST CAN BE CLAIMED
A plaintiff may claim pre-judgment interest as a matter of right when it is expressly stated in an agreement, implied by the conduct of the parties, established by mercantile custom or grounded in equitable principles, such as when a breach of fiduciary duty is involved.
In such cases, the plaintiff is entitled to an equitable remedy. Therefore, to successfully claim pre-judgment interest, a party must not only assert his right to such interest but also clearly state the basis of this entitlement — whether it arises from statute, contract, mercantile custom or equitable principles such as a breach of fiduciary relationship.
It is not for the court to speculate or objectify or assume the facts pleaded. Under the rules of court, there is provision for pre-judgment interest.
Pre-judgment is a judgment reached before evidence is available. If the claim is for money, the claimant may claim interest up until the date of judgment is given and that is pre-judgment interest.
[Skymit Motors Ltd. v. U.B.A. Plc (2021) 5 NWLR (Pt. 1768) 123 referred to.]
(P. 408, paras. A-E)
HERITAGE BANK LTD .v. MEENS NIGERIA LTD. (2025) 9 NWLR (Pt. 1994) 321 (SC)
ON WHOM LIES THE BURDEN TO PROVE INTEREST RATE IN CLAIM FOR AWARD OF INTEREST
It is incumbent on a party claiming interest to prove the interest rate, as the court lacks the jurisdiction to take judicial notice of it.
In this case, the respondent relied on the accounting firm’s final audit report (exhibit P11) to prove the pre-judgment interest rate it claimed. The interest rate used in exhibit P11 was the same rate the appellant charged the respondent on its account with the appellant.
In essence, exhibit P11 – a documentary evidence which the appellant admitted by failing to respond to – is a classic evidence of proof of the interest rate.
[Daniel Holdings Ltd. v. U.B.A. Plc (2005) 13 NWLR (Pt. 943) 533; Julius Berger (Nig.) Plc v. T.R.C.B. Ltd. (2019) 5 NWLR (Pt. 1665) 219 referred to.]
(P. 374, paras. A-H)
HERITAGE BANK LTD .v. MEENS NIGERIA LTD. (2025) 9 NWLR (Pt. 1994) 321 (SC)
ON MEANING OF “INTEREST RATE”
Interest rate denotes the percentage of an amount of money which is paid for its use for a specified time.
[Veepee Ind. Ltd. v. Cocoa Ind. Ltd. (2008) 13 NWLR (Pt. 1105) 486 referred to.]
(P. 374, para. B)
HERITAGE BANK LTD .v. MEENS NIGERIA LTD. (2025) 9 NWLR (Pt. 1994) 321 (SC)
ON WHETHER ACTION BASED ON EXCESSIVE INTEREST CHARGE IS PROPER
An action founded on usury – excessive interest charge – as in this case, is cognisable in law.
[Atiba Iyalomu Savings & Loan Ltd. v. Suberu (2018) 3 NWLR (Pt. 1637) 387 referred to.]
(P. 374, para. E)