ODUWOBI & ORS. V. BARCLAYS BANK D C O

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NIGERIAN SUPREME COURT CASES [1962] N.S.C.C.

ODUWOBI & ORS. V. BARCLAYS BANK D.C.O.

5

MICHAEL F'OLUWASO ODUWOBI

& ORS.

V

BARCLAYS BANK D.C.O.

APPELLANTS

RESPONDENT

SUIT NO. FSC 68/1961

10

FEDERAL SUPREME COURT

UNSWORTH



F.J.

TAYLOR,

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F.J.

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15

BAIRAMIAN,

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F.J.

12th March, 1962.

Commercial Law. - Common Counts - Money had and received - Quasi contract

- obligation constituted by Law - Not dependent upon consent, intention or

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privity of contract - Money paid under mistake induced by fraud - Right to

recover against party receiving money.

Banking - Letters of credit - Payment out on fraudulent documents - Right of

bank to recover from persons who received whether aware of fraud or not -

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Cause of action independent of any cause of action against third person on

contract.

ISSUES:

1.

What is the basis of an action for money had and received?

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2.

Whether an action for money had and received lies against a third party (not

privy to the transaction giving rise to the cause of action) to whom payment had

been made by mistake, induced by the fraudulent misrepresentation of that third

party at the instance of the party who had made the payment?

3.

Whether a bank can recover money paid out by mistake on the presentation of

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false documents, under an action for money had and received.

4.

What should a plaintiff prove, in order to succeed in an action for money had

and received, under a letter of credit transaction in which payment is made

conditional upon shipment?

5.

Can an action for money had and received lie against a third party not privy

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to a transaction in relation to a bill of exchange which had been accepted?

FACTS:

An action for Money had and received was brought by the plaintiff Bank.

The Bank held Letters of Credit in favour of a company in Lagos which in-

structed the bank to pay a certain amount to the Defendants firm upon presenta-

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tion of shipment of certain goods from Lagos. The Defendant presented

documents purporting to show a shipment of that value and the bank credited the

defendants firm with the amount, most of which was withdrawn. Later, it was found

out that the shipping documents contained false representations as no goods of

the stated value had been shipped from Lagos. The trial Judge found that Odu-

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wobi the defendant was aware of the false representations and found for the plain-

tiffs. The Defendants appealed to the Federal Supreme Court.