Justice Alexander Owoeye of the Federal High Court in Lagos has ordered Zenith Bank Plc to pay Christomax Concept Limited the sum of N30 million as general and aggravated damages for fraudulently and illegally debiting the firm’s accounts.
The plaintiffs—Christomax Concept Limited, Chris Integrated Company Limited, and Mr. Christopher Adayi—filed suit number FHC/L/CS/2039/2024 through their lawyer, Adetunji Adedoyin-Adeniyi of AAA Chambers, seeking a declaration that the bank’s failure to refund the fraudulently deducted sum constituted a breach of fiduciary duty.
They also requested an order compelling Zenith Bank to immediately refund the N10.6 million.
They further sought:
An order for the bank to write off the balance of a loan granted to the 1st plaintiff on May 27, 2022, since the illegal deductions were not refunded.
An injunction restraining Zenith Bank from taking any action to recover the loan or from harassing or intimidating the plaintiffs.
A directive for the bank to pay N500 million in damages for breach of fiduciary duty.
However, Zenith Bank, in its defense, argued that the suit was wrongly filed as an Originating Summons instead of a Writ of Summons and should be struck out.
The bank contended that the N15 million allegedly deducted was partially recovered, with N5,068,290.00 salvaged from Kuda Microfinance Bank.
The bank further argued that declaratory reliefs could not be granted without solid evidence and urged the court to dismiss the plaintiffs’ claims.
Justice Owoeye, in his judgement, pointed out that Zenith Bank had admitted to issuing a debit card linked to the plaintiffs’ accounts.
He stated that as the card issuer, the bank was responsible for authorizing transactions made with the card, taking action in case of fraud to stop further unauthorized use, and reversing fraudulent transactions when advised or directed.
The judge criticized the bank for failing to act after the fraud was reported on July 13, 2022, describing its conduct as “oppressive and high-handed.”
The court also ruled that the bank’s failure to refund N10,631,710.00, which was fraudulently deducted from the plaintiffs’ accounts, resulted in loss of business and goodwill, amounting to a breach of fiduciary duty owed by the bank.
The court ruled in favor of the plaintiffs and ordered:
An immediate refund of N10,631,710.00 deducted from their accounts.
A payment of N30 million in damages for breach of fiduciary duty, loss of business, goodwill, embarrassment, inconvenience, and hardship caused to the plaintiffs.
This judgement reaffirms banks’ duty to protect customers’ funds and take swift action in fraud cases.
