Background
Osumuo v. Udeaja concerned the hearing of a counter-claim after the respondent’s substantive action had been struck out for want of prosecution. The respondent, Samuel Udeaja, commenced proceedings before the High Court of Anambra State, Nnewi, concerning a parcel of land known as “Mbana” land, also described as No. 17 Onitsha-Owerri Road, Nnewi. He claimed declarations relating to possession, use and statutory occupancy, relief against forfeiture, and damages for alleged trespass.
Following service of the originating process, the appellant, Andrew Osumuo, filed a counter-claim. He alleged, among other things, that the lease relied upon by the respondent’s predecessor had been breached through non-payment of rent and other violations. The counter-claim sought declarations that the lease had determined, confirmation that re-entry was proper, forfeiture, payment of rent arrears and damages for breach of covenant and trespass.
On 29 July 2003, the respondent and his counsel were absent. The trial High Court struck out the respondent’s action for want of prosecution and fixed the counter-claim for hearing. The counter-claim was subsequently heard on 19 November and 4 December 2003 in the respondent’s absence. The trial court delivered judgment on 20 January 2004 in favour of the counter-claimant. The Court of Appeal, Enugu Division, set aside that judgment and ordered a retrial, holding that the respondent had not been served with hearing notice for the counter-claim. Andrew Osumuo appealed to the Supreme Court, contending principally that Order 24 rule 14 of the High Court of Anambra State (Civil Procedure) Rules 1988 permitted the trial court to proceed without further notice.
Issue
The determinative issue was whether, having regard to Order 24 rule 14 of the 1988 Rules, the Court of Appeal was correct to nullify the High Court’s judgment because the respondent was not served with hearing notice before the counter-claim was heard and determined.
Applicable Rule and Ratio Decidendi
Order 24 rule 14 provides that where a defendant has a counter-claim and the plaintiff’s case has been struck out under the relevant rule, the court may either proceed to hear the counter-claim and give judgment on the defendant’s evidence, or postpone the hearing and direct that notice of the postponement be given to the plaintiff.
The Supreme Court, in a unanimous judgment delivered by Obande Festus Ogbuinya, J.S.C., held that the provision has two distinct alternatives. The first permits immediate determination of the counter-claim where the plaintiff is present or has knowledge of the proceedings. The second applies where the plaintiff was absent when the original action was struck out and the counter-claim is adjourned or postponed. In that situation, notice of the postponed hearing is mandatory.
The Court applied the literal rule of statutory interpretation, holding that the wording of Order 24 rule 14 was clear and required no strained or embellished interpretation. Since the respondent was absent when his action was struck out and did not participate in any of the subsequent counter-claim proceedings, the trial court was under a duty to order the issuance and service of hearing notices, including notice of the date fixed for judgment.
Court Findings on Fair Hearing
The Supreme Court emphasised that service of process, particularly hearing notice, is fundamental in Nigeria’s accusatorial system of adjudication. A hearing notice informs a party of the date, time and place of proceedings and provides the practical opportunity to attend, defend the case, cross-examine witnesses, inspect evidence, call evidence and address the court. These protections are constitutionally guaranteed by section 36(1) of the Constitution of the Federal Republic of Nigeria 1999, as amended.
The respondent had been denied every material opportunity to participate in the counter-claim. He could not hear the evidence against him, cross-examine the appellant’s witnesses, tender evidence, call witnesses or make submissions through counsel. The Court held that where hearing notice is necessary but is not served, the court lacks the vires to continue with the proceeding and every consequential order is a nullity.
The Court further held that a breach of fair hearing inherently occasions a miscarriage of justice. The affected party is not required to prove specific damages or financial loss resulting from the breach. Once the constitutional right is violated, the proceeding is void regardless of the apparent quality, fairness or thoroughness of the evidence considered by the court.
Effect of Nullity and Proper Order
Nullity means that the impugned proceeding or decision has no legal existence or effect. A judgment affected by nullity cannot confer enforceable rights on its beneficiary or impose obligations on the party adversely affected. The Court therefore affirmed that the Court of Appeal was entitled, as a matter of justice, to set aside the High Court’s judgment and order a hearing de novo of the counter-claim.
Where fair hearing has been denied, the proper appellate remedy is retrial or rehearing, so that the affected party can be properly heard. The Supreme Court also explained that once a de novo hearing is ordered, the appellate court must avoid determining other issues in a manner that could prejudice matters to be considered afresh by the trial court.
Decision and Conclusion
The Supreme Court unanimously dismissed the appeal and affirmed the judgment of the Court of Appeal, Enugu Division, delivered on 9 April 2008. The High Court judgment of 20 January 2004 granting the counter-claim was set aside as a nullity, and the counter-claim was to be heard afresh. The parties were ordered to bear their respective costs.
Significance
The decision reinforces the centrality of hearing notice to fair judicial procedure. It clarifies that striking out a plaintiff’s action does not automatically eliminate the plaintiff’s right to notice where a counter-claim is postponed for later determination. Courts must maintain procedural fairness even in default proceedings and must ensure that justice is not merely done but is manifestly seen to be done.
Counsel:
- Joy Etiaba, Esq., with E. E. Nnamani, Esq. – for the Appellant
- Chijioke Udeogu, Esq. – for the Respondent