Facts
This appeal arose from a dispute involving a Credit Guarantee Bond issued by the Appellant (an insurance company) in favour of the Respondent (a bank), guaranteeing a N150,000,000 (one hundred and fifty million Naira) overdraft facility granted to Fort Knox Investment Limited. The Respondent sued the Appellant for the outstanding sum on the bond after Fort Knox allegedly defaulted. At the trial court, the Appellant posited that its guarantee was limited to eight cocoa purchase contracts that had been fully settled, denying liability for newer contracts and disputing the interest rate claimed. The High Court of Lagos State initially declined jurisdiction on the basis that the dispute did not involve a direct banker-customer relationship under Section 251(1)(d) of the Constitution of Federal Republic of Nigeria, 1999 (as amended) (“the Constitution”). However, the Court of Appeal reversed this finding. The appellate court held that since Fort Knox (the bank’s customer) was joined as a third party, the case concerned a banker-customer dispute and therefore fell within the jurisdiction of the High Court of a State.
The Appellant has appealed this decision to the Supreme Court. The core issue is whether the High Court has jurisdiction over the claim given the guarantor’s relationship with the bank and the inclusion of the customer in the suit.
