The Court of Appeal in Lagos has dismissed the appeal by the United Bank for Africa (UBA) for it to refund its customer, Ibeh Ogochukwu, N1.1 million siphoned from her account by her account officer.
In a unanimous decision, the Appeal Court upheld the judgment of a Lagos High Court that the account officer, Joan King, was an employee of the bank and acted as an agent of the bank and therefore the bank is liable.
Justice Abimbola Obaseki-Adejumo held in the lead judgment that the act of King was deceitful and fraudulent, and that she committed the offence “right under the nose of the business manager, within the banking hall while using the infrastructure of the bank.”
Ogochukwu had in her statement of claim asked the court to order UBA to refund N1.1 million fraudulently withdrawn from her account by King.
Justice S. O. Ishola of the High Court delivered judgement in her favour on January 13, 2010 and ordered the bank to refund the sum.
UBA went to the Appeal Court and urged it to set aside the judgment on the grounds that under the law, it cannot be held liable for the crime of its agent.
But the Appeal Court held that “when a bank holds out a staff to a customer it presupposes that the bank has infinite confidence in her performance, integrity and character to interact with its customers.
“Certainly the bank will be liable for the act of such an agent who steps out of line.’’
The Appeal Court said upon the evaluation of the evidence and pleadings by the trial judge, there was no miscarriage of justice, and the act of crime was proved beyond reasonable doubt.
The fact of the case is that Ogochukwu operated a savings account with the bank, the court added.
Ogochukwu deposed in her statement of claim that
• She entered the branch of UBA at Alaba International Market, Ojo, Lagos on March 20, 2002 to check her balance and one Wale Ogundeinde, an employee of the bank, advised her to offload her account into a fixed deposit account that would yield better returns.
• The bank assigned King as her account officer and to manage the fixed deposit account.
• On one occasion, King borrowed N300,000 from her in the banking hall and when she demanded repayment, King told her that she had used it to open a fixed deposit account for her in the bank.
• On April 27, 2003, King visited her at home to rejoice with her over her new born baby and informed her that she had N500,000 lying idle in her savings account. King told her that she used the money to open another fixed deposit account for her.
• Since she, Ogochukwu, could not go to the bank because she had just given birth, King gave her a detached withdrawal slip to sign to enable her (King) withdraw the money and open a fixed deposit account for her.
• Unknown to her, King withdrew the money and converted it to her own use.
• On another occasion, King accosted her in the banking hall for another financial assistance of N300,000 which she gave her before she discovered that she had been fleeced by King.
• She complained to UBA and after investigation the bank ordered King to pay back the money into her account but King refunded only N230,000 before she terminated her employment with the bank without resolving the matter.
