Segun Atanda/
A Federal High Court in Lagos has ordered Zenith Bank Plc to pay a total of N40,631,710 in damages to Christomax Concept Limited, Chris Integrated Company Limited, and their alter ego, Mr. Christopher Adayi, for fraudulently and illegally debiting their accounts.
Justice Alexander Owoeye, in his judgment, held that the bank breached its fiduciary duty by failing to refund N10,631,710 fraudulently deducted from the plaintiffs’ accounts, despite being notified of the fraud on July 13, 2022. The court ruled that this failure resulted in a loss of business and goodwill, describing the bank’s actions as “oppressive and high-handed.”
The plaintiffs, represented by their lawyer, Adetunji Adedoyin-Adeniyi of AAA Chambers, had filed suit number FHC/L/CS/2039/2024, seeking a declaration that the bank’s failure to refund the funds constituted a breach of fiduciary duty. They also requested an order compelling Zenith Bank to immediately refund the N10.6 million, along with damages for the losses incurred.
In addition to ordering an immediate refund, the court awarded:
- N30 million in damages for breach of fiduciary duty, loss of business, goodwill, embarrassment, inconvenience, and hardship caused to the plaintiffs.
The plaintiffs had also sought an injunction restraining the bank from taking action to recover an outstanding loan, arguing that the illegal deductions had not been refunded.
Zenith Bank, in its defense, argued that the case was wrongly filed as an Originating Summons instead of a Writ of Summons and should be struck out. The bank also claimed that part of the deducted amount had been recovered, with N5,068,290 salvaged from Kuda Microfinance Bank. Additionally, it contended that declaratory reliefs could not be granted without solid evidence.
However, Justice Owoeye dismissed the bank’s objections, emphasizing that as the issuer of the debit card linked to the plaintiffs’ accounts, Zenith Bank was responsible for authorizing transactions, taking action against fraud, and reversing unauthorized debits when reported.
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