LEGAL PRINCIPLE: DAMAGES – Special Damages – Requirement of Strict Proof
PRINCIPLE STATEMENT
Special damages must be strictly proved; the court cannot award them on mere assertion or speculation.
RATIO DECIDENDI (SOURCE)
Per Kalgo, JSC, in Narindex Trust Ltd. & Anor v. Nigerian Inter-Continental Merchant Bank Ltd. (2001) NLC-1591997(SC) at pp. 9–10; Paras A–A.
"The counter-claim of the appellants were also based on the assumption that SGS Inspection Services Ltd (hereinafter called SGS) was the accredited agent of the respondent and on the principle of vicarious liability, the respondent are liable for the acts of its agent. The Court of Appeal has painstakingly examined this relationship... and came to the conclusion that in the circumstances of this case, SGS is more inclined to be the agents of the appellants than the respondent... I have carefully examined the evidence on record... and I am convinced that the above findings of the Court of Appeal on SGS agency are proper and valid and I agree with them... In the result, the respondent bears no liability for the loss of the raw cotton concerned and consequently the award to the appellants of the sum of N12.1 million as special and general damages in respect thereof cannot stand."
EXPLANATION / SCOPE
Special damages must be strictly proved with particularity. The claimant must provide evidence of the specific amounts claimed—receipts, invoices, or other documentation. Vague assertions or speculation are insufficient. The court cannot award special damages based on assumptions. The principle ensures that claimants do not receive windfalls for unproven losses. The requirement applies to all claims for special damages, including those arising from breach of contract, tort, or agency relationships. The burden of proof is on the claimant. Failure to strictly prove special damages results in their disallowance. The court may award nominal or general damages where appropriate, but special damages require proof.
