The Federal High Court in Lagos has ordered Zenith Bank Plc to pay Christomax Concept Limited and two others a total sum of N40,631,710 in general and aggravated damages for fraudulently and illegally debiting their accounts.
Justice Alexander Owoeye delivered the ruling in a suit filed by Christomax Concept Limited, Chris Integrated Company Limited, and their alter ego, Mr. Christopher Adayi, against Zenith Bank.
The plaintiffs, through their lawyer, Adetunji Adedoyin-Adeniyi of AAA Chambers, argued that the bank’s failure to refund the fraudulently deducted amount constituted a breach of fiduciary duty.
The court ordered the bank to:
• Refund N10,631,710 deducted from the plaintiffs’ accounts.
• Pay N30 million in damages for breach of fiduciary duty, loss of business, goodwill, embarrassment, inconvenience, and hardship.
Zenith Bank, in its defense, contended that the suit was improperly filed and should be struck out.
The bank also claimed that part of the N15 million allegedly deducted had been recovered.
However, Justice Owoeye ruled that as the issuer of the debit card used in the fraudulent transactions, Zenith Bank was responsible for protecting its customers from unauthorized transactions and acting swiftly to mitigate losses.
The court condemned the bank’s failure to take action after the fraud was reported on July 13, 2022, describing its conduct as “oppressive and high-handed.”
This judgment reinforces the duty of banks to safeguard customer funds and respond promptly to fraud cases.
