For negligence in account opening of their customers and failure to exercise the requisite duty of care, Justice Oluwatoyin Odusanya of the Lagos High Court, Ikeja has ordered four banks to pay N23, 050,237.54 to a customer.
Justice Odusanya also awarded N3, 050,237.54 as special damages, N20, 000,000 as general damages against the defendants in favour of a claimant, Dr (Mrs) Oluwatosin Sanu in a N53 million suit filed against the banks.
The court ordered that interest would be paid on unauthorised withdrawal of N3, 050,237.54 at the prevailing bank rate from September 6, 2013 till August 5, 2014 and thereafter interest on the judgment sum at 10 per cent yearly from February 2, 2024 to the date of payment.
The court, however, declined the claimant’s request for exemplary damages in the sum of N25 million for being unable to prove the offence of “wanton, cruel and insolent conduct” against the first to fourth defendants.
The court gave the award having established “negligence and lack of duty of care” against the four out of five banks listed as defendants in the suit marked ID/ADR/195/14.
The banks listed as defendants are United Bank of Africa Plc, Diamond Bank of Nigeria Plc, Guaranty Trust Bank Plc, Access Bank Nigeria Plc and Stanbic IBTC Bank as first to fifth defendants respectively.
Justice Odusanya gave the awards while delivering judgment on February 2, 2024 in the suit marked ID/ADR/195/14 filed by Dr Sanu through her counsel, Prof. Akin Ibidapo-Obe.
The Plaintiff commenced the suit on August 5, 2014, claiming that huge transactions were done through internet banking on her accounts with the banks when she travelled to America.
The claimant said she was informed by the 1st defendant that a total sum of N3, 050,237 had been transferred to various purported beneficiary accounts through the bank’s internet banking transactions.
The claimant stated that the 1st defendant breached the duty of care owed to her and was negligent in the management of her banking account when it facilitated such huge withdrawals without the claimant’s knowledge and authorisation.
In their various amended statements of defence, the 1st to 5th defendants stated that they were not negligent in handling the account of the claimant and that they observed safe practice in handling the internet and electronic banking transaction activities on the account.
But the court disagrees with them. While delivering judgment, Justice Odusanya, citing several decided cases, showed that superior courts have held that “a bank has a duty under its contract with its customer to exercise care and skill in carrying out its part regarding operating its contract with its customers. The duty to exercise reasonable care extends over the whole range of banking business within the contract customers.”
