Incompetence of Action in the name of a Donee of a Power of Attorney
1. BackgroundFact:
In this case, Mr A by a Powerof Attorney dated 6th
January 2009 donated powerto B
Limited to do the following:
a. To collect, hold, maintain,improve,invest,lease, or manage any or all property;
whetherreal or personal, tangible or intangible, located in Lagos and Abuja or
any interest therein;
b. To purchase,sell, mortgage,grant options, orotherwise dealin any way in any
real property or personalproperty,tangible,or intangible, or any interest
therein;
c. To engage in any administrative orlegal proceedings orlawsuits in connection
with the matterherein;
d. To execute any instrument and do all other,deeds and things which the
Attorney considers necessary orproperfor or in connection with any ofthe
above and he is given authority to act as fully and effectively in all respect as
could the Donor.
On the basis of the said power of attorney, B Limited instituted an action
against C Limited in its personal capacity and obtainedjudgment thereby.
Position of the Law
A donee of a Power of Attorney or an agent,in the initiation of a suit or action pursuant
to his powerunder the Power of Attorney,must sue in the name of the donoror his
principal and not otherwise.We refer to the cases of John Aghim Vs. GambaJeme
Yita [1972] 2 ELSLR 365; Ntia Vs. James [2007] All FWLR (Pt. 351) 1600;
Vulcan Gases Ltd. Vs. Gessellschaft F. I. G [2001] 9 NWLR (Pt. 719) 610.
The resultant effect is that the Writ of Summons by which the action was initiated is
invalid as the Plaintiff lacked locus standi to institute the action.
2. The situation in this case is similar to the situations that arose in all the legal
authorities cited above.It follows therefore that the legal principle of the said judicial
authorities are applicable to the case in hand.
It is clear from the powers donated to the Claimant,that the Claimant (B Limited)
has no proprietary interest in the Donor’s property,whateverlegal actions he will
institute with respect thereto has to be commencedin the Donor’s (Mr A) name. The
authorities cited above are clear that this is a fundamentalissue that borders on the
competenceofthe action.
By instituting the action in the Donee’s (B Limited) name thereof,the whole action
is flawed on the fundamentalissue.
Action Point
Move to file an appealmake the above a ground of appeal.