Court Orders First Bank To Pay N1.2m Damages For Freezing Customer’s A/C

First Bank of Nigeria Plc has been ordered by the High Court of Akwa Ibom State presided over by Justice Philomena S. Etim to pay N1m general damages in favor of one Pastor Kelly Eyo Nelson of Great Harvest Ministry, Uyo and N200,000.00 for cost of action in Suit No.HU/183/2010, according to the Judge’s ruling on Tuesday January 15, 2013 at High Court three.

 In his statement of Claim, Pastor Nelson had said his account was reportedly frozen when in July 2009 one Pastor George Godwin Ekpo approached a branch of First Bank at Ikorodu to pay into his account the sum of N2m which was to be used by him to purchase a land for the expansion of his Ministry.

He further stated that on trying to make withdrawals using his ATM Card the machine refused to pay him with the message, “Invalid transaction, please contact your bank for advice”.

According to Pastor Nelson, even an attempt to withdraw cash with a debit slip was not honored which caused him to approach the Branch Manager of the bank at Oron road, one Mr Anyanor Sylvester who disclosed to him that his account was frozen based on a letter from the Nigeria Police Area Command, Uyo.

 This Paper can report that the Area Commander, ACP Joseph Agaji had on June 17, 2009 written to the Branch Manager of First Bank of Nigeria Plc, Oron road, Uyo asking for the “Statement of Account Number 3312010102575 of one Kelly Eyo Nelson” for purposes of investigation of a case of obtaining money by what the letter called “false pretence”.  The said letter also sought to know from the Bank  the date and total amount paid into that same account by one Sunday Akpan Essien.

 A Magistrate Court Order signed by Chief Magistrate Nkereuwem Martin Obot permitting the Police to carry out the investigation into Kelly Nelson’s account with First Bank was also obtained by the Police on 22 May 2009.

In his Statement of Claim Kelly Nelson wondered how his account could have been frozen without a Court Order and without his facing any criminal charge pertaining to money laundering, adding that the action of First Bank caused him “serious psychological trauma and great financial loss” and that he was “injured in his  character, dignity, pride, credit, feeling and reputation”, which he said brought him “into public scandal, odium and contempt”.  He said his account was frozen illegally without his consent and authority and without any information formally made known to him.

He had sought for reliefs in the sum of N2m special damages, N20m for general damages for the psychological trauma and other discomforts he went through with members of his family and that the court should declare that the freezing of his account without his consent was illegal, as well as N200,000.00 cost of action.

 In its argument in defense of the issues raised by Kelly Nelson, First Bank Plc, through its Solicitor, Uwem Udok, twenty five of the 29 paragraphs in the Statement of Claims of Pastor Kelly were denied as false.

 The Bank also argued that the said pastor did not complete his account opening processes and documentation as there was a reference letter he was to submit which he did not, hence the bank had to refuse his withdrawal of funds from the said account but did not obstruct any lodgment into the said account as argued by Pastor Kelly.

 The Bank stated that the letter from the Police authorities and a subsequent Court Order to investigate his account which had allegation of money laundering was also responsible for his account being frozen.

 It further argued that the plaintiff was not entitled to the reliefs sought and that the case should be dismissed with substantial costs.

 In his “Defendant’s Rejoinder on Points of Law to the Plaintiff’s Final Address”, Uwem Udok, Ph.D, raised three issues, cited some case laws and stated that the Plaintiff was not allowed to access his account because it was under investigation.

The case which started on July 8, 2010 was ruled on January 15, 2013.

 Meanwhile, First Bank of Nigeria Plc has filed a “Motion on Notice” seeking “An Order granting a stay of execution of the judgment delivered” at High Court three, Uyo on January 15, 2013, pending the hearing and determination of its  Appeal filed at the Court of Appeal, Calabar on four grounds.

 In the Notice of Appeal filed on January 16, 2013 by First Bank of Nigeria Plc, the learned Trial Judge is said to have erred in law “and thereby came to wrong decisions in the case when he awarded general damages in favor of the Plaintiff, awarded N1m to the Respondent for the embarrassment, emotional shock and psychological trauma purportedly suffered by him and also held that the Appellant did not give Notice to the Respondent before freezing his account”.