Ratio Decidendi

Per Ogbuagu, JSC, in A.G. Leventis Nigeria Plc v. Akpu (2007) NLC-123-140-2002(SC) at pp. 16–17; Paras B–D:

Ratio Decidendi (Source): "An award of damages can only be upset or interfered with by an appellate court, if it is shown by the appellant, either that: (a) the trial court acted or proceeded upon wrong principles of law, or (b) the amount awarded by the trial court, is manifestly and extremely high or low, or (c) the amount, was on an entirely erroneous estimate which no reasonable tribunal, will make."

Explanation / Scope

This principle balances judicial discretion with appellate oversight. Assessment of damages is a discretionary exercise by the trial court, and appellate courts accord considerable latitude to that discretion. The first ground covers errors like adopting an incorrect measure of damages or disregarding relevant factors. The second ground addresses awards that shock the judicial conscience—not mere dissatisfaction with the quantum. The third ground applies where the computation is plainly irrational or based on conjecture. The appellant bears the burden of proving one of these grounds. Without such proof, the appellate court will not substitute its own valuation, even if it might have awarded a different sum. This restrictive approach ensures finality and respects the trial court’s unique position in assessing evidence and evaluating loss.

Cases Applying This Principle