Facts:

The respondent is a company and owner of 10 fully developed and serviced coastline flats at Southport Harbour, Victoria Island, Lagos State. The 3rd appellant is a dredging company employed by Eko Atlantic City to dredge the Kuramo Waters and the owner of the 1st appellant and the sister vessel the Congo River and the 2nd appellant. The respondent alleged that between the years 2012 and 2014, the appellants’ sister vessel, while carrying out the Eko Atlantic project and their dredging activities, caused damage to its coastline. These dredging activities were alleged to be ongoing and wreaking further havoc on the natural sedimentary formation and integrity of the Kuramo Waters coastline and that as a result, the respondent’s property at Southport Harbour, Victoria Island, Lagos State was greatly undermined and destroyed causing a permanent devaluation of the property.

Aggrieved by these acts, the respondent filed a suit in rem against the appellants at the Federal High Court, Lagos Division under the admiralty jurisdiction of the court praying it for several orders against the appellants. Among the reliefs, the
appellant sought N700,000,000 (Seven Hundred Million Naira) for alleged damage to its property and economic losses resulting from the loss of rental income on the property and general damages of N3,000,000,000 (Three Billion Naira) for the alteration to Kuramo Waters coastline, long term devaluation of its property and exposure of the property and its foundations to ocean swells and sedimentary erosions.

After being served with the process, the appellants filed their defence and incorporated some points of law and asking that the points be determined before the substantive suit could be heard. By an application, the appellant sought orders of the court to determine the points raised in the statement of defence and to dismiss the suit of the respondent for lack of jurisdiction. The gravamen of the
application was that the respondent lacked the locus to institute the suit and seek the damages therein thus depriving the court of requisite jurisdiction. After hearing the parties on the application, the trial court ruled in favour of the respondent and dismissed the application. The court held that the respondent has the locus to institute the suit and that the court is vested with jurisdiction to hear and determine it. The appellants were aggrieved and filed a notice of appeal at the Court of Appeal, Lagos Division praying the court to set aside the ruling of the trial court. The issues for determination are whether the trial court was right when it held that the respondent has the locus standi to claim damages in the sum of N3,000,000,000 (Three Billion Naira) for the alleged alteration of the Kuramo Waters coastline and whether the trial court was right when it held that it has jurisdiction to hear and determine the suit between the parties.