LEGAL PRINCIPLE: EVIDENCE LAW — Valuation Evidence — Basis Must Be Relevant to Subject Matter — Investment Calculation Not Proper Valuation of Landed Property
PRINCIPLE STATEMENT
Valuation of landed property based on pure investment portfolio calculation in a commercial bank is not proper evidence of value; the law does not permit evidence of no probative value to be relied upon.
RATIO DECIDENDI (SOURCE)
Per Uwaifo, JSC, in Rockonoh Property Co. Ltd v. Nigerian Telecommunications Plc (2001) NLC-711995(SC) at pp. 8, 26; Paras C–D, B–D.
"It is an interesting development that a person who studied estate management to practise as an estate surveyor and valuer would base his valuation of landed property on pure investment portfolio in a commercial bank... Exhibit V is not evidence capable of such proof. I am entitled to say so in this appeal. The law does not permit evidence which is of no probative value to be relied upon by a party, nor to be acted upon by the court, to support a claim."
EXPLANATION / SCOPE
Valuation evidence must be based on relevant methodology. Valuing landed property based on investment portfolio calculations (e.g., bank deposit interest) is improper. Such evidence has no probative value. The court will not rely on it. The expert must use recognised valuation methods for real property. The principle ensures that only reliable evidence is considered. The party offering valuation evidence must show that the methodology is appropriate. The court may reject valuation evidence that is fundamentally flawed. The rule applies to expert testimony generally. The judge is not bound to accept expert evidence that is manifestly unreliable. The court will assess the probative value of all evidence, including expert opinions.