LEGAL PRINCIPLE: CIVIL PROCEDURE — Default Judgment — Unliquidated Damages — Evidence Required for Assessment
PRINCIPLE STATEMENT
A court is not entitled to enter summary or default judgment on a claim for unliquidated pecuniary damages without taking evidence for the assessment of damages; the court must give reasons for how it arrived at the amount awarded.
RATIO DECIDENDI (SOURCE)
Per Iguh, JSC, in Maja v. Samouris (2002) NLC-721997(SC) at p. 15; Paras D–E.
"It cannot be over-emphasised that a court is not entitled to enter summary or default judgment on a claim based on a relief for payment of unliquidated pecuniary damages without taking evidence for the assessment of the amount of damages that may be proved as such a claim must be established by credible evidence. This is because it is not enough for the court to simply award damages in an unliquidated pecuniary damages claim without giving any reason as to how it arrived at what in its opinion amounted to reasonable damages."
EXPLANATION / SCOPE
Unliquidated damages require proof. The court cannot award them without evidence. The plaintiff must adduce credible evidence to establish the amount. The court must give reasons for the award. Default judgment on unliquidated damages without evidence is improper. The principle protects defendants from arbitrary awards. The plaintiff must prove the quantum of damages. The court may enter interlocutory judgment on liability and then assess damages. The rule applies to all unliquidated claims. The appellate court will set aside awards made without evidence. The court must ensure that the damages are reasonable and supported by evidence.
