PETROLEO BRASILEIRO NIG. LTD. v. INTERCITY COMMODITIES LTD. & ANOR.

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Facts:

The respondents entered into a certain contract with the appellant in which they paid the sum of $2,100,000 (Two Million, One Hundred Thousand United States Dollars) for signature bonuses in respect of a certain company’s share in Oil Prospecting License (OPL) 315. The respondents alleged that the OPL 315 was eventually returned to the Federal Government of Nigeria and that they were entitled to a refund. Consequently, they filed a suit against the appellant at the High Court of Lagos State for the refund of $2,100,000 (Two Million, One Hundred Thousand United States Dollars) and other reliefs.
After being served with the originating process, the appellant filed an application for an order striking out the suit of the respondents. The application was predicated on the allegation that the suit does not disclose a reasonable cause of action against the appellant. The appellant submitted that a consideration of the entire frontloaded process of the respondents shows that there was no reasonable cause of action against it. After hearing the parties on the application, the trial court dismissed the application and ruled that the allegations in the statement of claim were enough and did show some reasonable cause of action.
The appellant was aggrieved and filed a notice of appeal at the Court of Appeal, Lagos Division. The sole issue for determination is whether the respondent’s statement of claim disclosed a reasonable cause of action.

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