CIVIL PROCEDURE — Undefended List — Conditions for Placement — Claim Must Be for Liquidated Sum
Principle Statement
A liquidated demand is a debt or specific sum of money usually due or payable and its amount must be already ascertained or capable of being ascertained as a matter of arithmetic without any other or further investigation. Whenever therefore the amount to which plaintiff is entitled can be ascertained by calculation or fixed by any scale of charges or other positive data, it is said to be liquidated or made clear. Again, where the parties to a contract as part of the agreement between them fix the amount payable on the default of one of them or in the event of breach by way of damages such sum is classified as liquidated damages where it is in the nature of genuine pre-estimate of the damage which would arise from breach of the contract so long as the agreement is not obnoxious as to constitute a penalty and it is payable by the party in default.
Ratio Decidendi (Source)
Per Fabiyi, JSC, in G.M.O. Nworah & Sons Co. Ltd v. Akputa (2010) NLC-123-153-2006(SC) at pp. 3–4; Paras A–B.
"A liquidated demand is a debt or specific sum of money usually due or payable and its amount must be already ascertained or capable of being ascertained as a matter of arithmetic without any other or further investigation. Whenever therefore the amount to which plaintiff is entitled can be ascertained by calculation or fixed by any scale of charges or other positive data, it is said to be liquidated or made clear. Again, where the parties to a contract as part of the agreement between them fix the amount payable on the default of one of them or in the event of breach by way of damages such sum is classified as liquidated damages where it is in the nature of genuine pre-estimate of the damage which would arise from breach of the contract so long as the agreement is not obnoxious as to constitute a penalty and it is payable by the party in default."
Explanation / Scope
This principle defines a liquidated demand as a debt or specific sum already ascertained or capable of arithmetic ascertainment. Liquidated damages are genuine pre-estimates of loss agreed by parties. The principle applies where a claim is placed on the undefended list. It ensures that only liquidated sums are summarily determined. The principle reflects the requirement for certainty. It prevents claims for unliquidated damages from being summarily adjudicated. The court must determine if the claim is liquidated. The principle provides guidance on what constitutes a liquidated demand.
