Facts:

The appellant received a letter of credit by telex which it forwarded to Union Bank Plc the respondent a Nigerian banking institution with a branch in Benin, for confirmation. The respondent confirmed that the telex was genuine and requested a commission of N25.00 (Twenty five naira) for the service which sum was paid by the appellant. Acting upon this confirmation, the appellant exported Iroko furniture components worth DM28527.70 to C.I.E. Dubios Stockmanns (the applicant for the letter of credit). However, the appellant never received value for the goods exported. The appellant claims that it submitted drafts for the value of the goods which were to be paid by the respondent on the presentation of the relevant shipping documents in accordance with the terms of the letter of credit. The respondent did not make any payment and the appellant instituted an action in the Benin Division of the Federal High Court.

At the High Court, the respondent filed an application to strike out the suit for want of jurisdiction. The Judge in his ruling dismissed the application and held that the suit fell within the admiralty jurisdiction of the court. The respondent dissatisfied with the ruling appealed to the Court of Appeal which set aside the ruling of the high court on the ground that the claim was based on mere banker-customer relationship and ordered the transfer of the suit to the Delta State High Court. Dissatisfied with the decision of the Court of Appeal, the present appellant further appealed to the Supreme Court.