CIVIL PROCEDURE — Consent Judgment — Definition — Contract Whereby New Rights Created in Substitution for Abandoned Claims
Ratio Decidendi
Per Onnoghen, JSC, in Daniel Tayar Trans Ent. Nig. Co. Ltd v. Busari & Anor (2011) NLC-123-179-2003(SC) at p. 13; Paras D—E:
"The rule is that action may be settled by consent during the trial, usually such settlement is a compromise and in order to have a binding effect on the parties, it is imperative that it should have the blessing of the court. Settlement between parties may be described as a contract whereby new rights are created between them in substitution for, and in consideration of, the abandonment of the claim or claims pending before the court. When the court moves and takes action as agreed upon by the parties, it becomes a consent judgment."
Explanation / Scope
This principle defines a consent judgment as a settlement by consent during trial, constituting a contract creating new rights in substitution for abandoned claims, which becomes a consent judgment when the court takes action as agreed. The principle applies where settlements are reached. It ensures that settlements are binding. The principle reflects the nature of consent judgments. It requires the court’s blessing. The court must formalize the settlement. The principle provides guidance on consent judgments.