Whether the Rebranding of Leased Premises Can Amount to Subletting Same?

CASE TITLE: A. Y. OIL & PETROCHEMICAL LTD & ANOR v. ETERNA PLC (2023) LPELR-60709(CA)

JUDGMENT DATE: 8TH JUNE, 2023

PRACTICE AREA: TENANCY LAW (LEASE)

LEAD JUDGMENT: ELFREIDA OLUWAYEMISI WILLIAMS-DAWODU, J.C.A.

SUMMARY OF JUDGMENT:

INTRODUCTION:

This appeal borders on the issue of Sub-lease and Rebranding of Leased Premises.

FACTS:

The Appellants and Respondent entered into a tenancy agreement in 2008 for a ten-year lease of the 1st Appellant’s petrol station at Nyanya. The story of the Respondent was that, following a dispute between the 2nd Appellant and the Respondent’s Dealer in 2013 at the petrol station, the 2nd Appellant obstructed the Respondent’s business on the premises, in spite of the Respondent’s request that business be allowed to resume thereon.

The 1st Appellant’s position was that the Respondent breached the lease agreement by subletting the premises to the Nigerian National Petroleum Corporation (NNPC), without its written consent, as stipulated in the lease agreement. Consequently, it proceeded to the High Court of the Federal Capital Territory and commenced an action against the Respondent, praying that the lease between both parties be set aside as the Respondent sublet the premises to the NNPC in 2012.

The Respondent joined issues with the Appellants and counter-claimed against the obstruction and forceful take-over of the leased business in June 2013. The Court found in favour of the respondent and dismissed the claims of the appellants. Dissatisfied, the appellants appealed to the Court of Appeal.

ISSUES:

The appeal was determined on a lone issue viz:

“Whether in view of the totality of the evidence before the trial Court, the learned Court was right when it dismissed the Appellants’ case and rather granted the reliefs sought in the Counter-claim of the Respondent.”

DECISION/HELD:

The singular issue was resolved against the appellants and the appeal was dismissed.​

RATIOS:

• LANDLORD AND TENANT – SUBLEASE – Meaning of sublet and rebrand; whether rebranding amounts to subletting
• EVIDENCE – BURDEN OF PROOF/ONUS OF PROOF – Whether a party can rely on the weakness in the case of the opposing party in order to succeed
• EVIDENCE – BURDEN OF PROOF/STANDARD OF PROOF – Burden and standard of proof in civil cases; whether it shifts

APPEAL – INTERFERENCE WITH AWARD OF DAMAGES – Whether award of damages is a matter within the discretion of the trial Court; circumstances in which an appellate Court will interfere with the same