C.G.C. Nigeria Limited (Appellant) vs. Alh. Mustapha Isa (Respondent)

Facts

The Respondent was awarded a contract by the Appellant to build residential houses for its staff who were undertaking a project at Katsina State. The Appellant gave the Respondent a building plan (Exhibit 3) containing the specifications for the said residential quarters and the parties executed the agreement (Exhibit 2) setting out the terms of the contract.

Subsequently and prior to the commencement of the project by the Respondent, the Appellant introduced another building plan (Exhibit 7) with different specifications and the parties agreed that the buildings should conform with Exhibit 7 and not Exhibit 3. The Appellant paid the contract sum to the Respondent in instalments as the construction progressed. After the completion of the project, the Appellant refused to pay the Respondent the amount due to him as cost incurred for the variation in the contract through the use of the specifications in Exhibit 7. Consequently, the Respondent instituted an action against the Appellant at the High Court of Katsina State, seeking the amount purportedly due to him as well as general damages.

In its judgement, the trial court held that the parties had abandoned their initial contract – Exhibit 2 and had by agreement made the Respondent incur additional expenses; hence, the Respondent was entitled to claim on quantum meruit basis having  expended his personal money on the project. The trial court, however, held that the Respondent failed to prove the amount claimed and on this basis dismissed his claim. Aggrieved, the Respondent appealed to the Court of Appeal. The Court of Appeal set aside the judgement of the trial court and ordered the Appellant to pay the sum of N7,622,955.98 to the Respondent, as the reasonable sum due to him on quantum meruit basis. The lower court also awarded general damages in favour of the Respondent. Displeased, the Appellant filed an appeal to the Supreme Court.