This appeal arose from a dispute between James Bay Resources Limited and Mak Mera Nigeria Limited regarding two agreements for oil and gas consulting services in Nigeria, as well as a claim for defamation.
The trial judge had ordered Mak Mera to repay US$405,000 in service fees, characterizing them as advances, and awarded James Bay $200,000 in defamation damages.
The Court of Appeal allowed the appeal, finding that the trial judge erred in her contract interpretation because the monetary payments were unconditional fees for services rendered, not repayable advances.
Additionally, the court reduced the defamation damages to a nominal award of $1,000 because the substantial award was unsupported by the evidence.