Facts:

The respondent entered into contract with the appellant wherein the latter was supposed to supply to the former Automotive Gas Oil (AGO) in separate tranches. In order to successfully carry out the transaction, the respondent secured bank guarantees. The appellant breached the contract by failing to carry out its contractual obligations. The respondent was aggrieved and filed a suit against the appellant at the High Court of Lagos State for damages. The respondent claimed the sum of N197,880,000.00 (One Hundred and Ninety Seven Million, Eight Hundred and Eighty Thousand Naira) being the loss of income from the first supply tranche of 5,000 metric tons of A.G.O which was to be supplied to a client for which it secured a bank guarantee of N535,440,000.00 (Five Hundred and Thirty Five Million, Four Hundred and Forty Thousand Naira). The respondent claimed the sum of N15,843,156.20k (Fifteen Million, Eight Hundred and Forty Three Thousand, One Hundred and Fifty Six Naira, Twenty Kobo) which was 18% interest on the bank guarantee for sixty days. Same amounts were also claimed for the second tranche of the AGO agreed but failed to be supplied by the appellant. Furthermore, the respondent claimed 21% interest on the sums from April, 2008 when the first tranche ought to have been supplied. The respondent also claimed general damages and costs.

The appellant filed its brief and the matter went to trial. At the end of proceedings, the court gave judgment in favour of the respondent and granted in part, the reliefs claimed by the respondent. The appellant was dissatisfied and filed a notice of appeal at the Court of Appeal, Lagos Division urging the court to set aside the decision of the trial court.

One of the issues for determination is whether the High Court of Lagos State had the requisite jurisdiction to hear and determine the respondent’s suit which the appellant contended is an admiralty matter for which only the Federal High Court has jurisdiction. The appellant also raised issues touching on the propriety of the award of special damages by the trial judge in favour of the respondent.