AGENCY RELATIONSHIP: WHO CAN BE SUED

It is a general rule that where an agent acting within the scope of his authority makes a contract with a third party on behalf of a disclosed principal, the agent drops out completely and only the principal can sue and be sued by the third party on the contract. In fact, a contract made by an agent for a disclosed principal typifies the normal situation in agency relationship; so long as the agent acts within the scope of his authority, any contract made by him on behalf of a disclosed principal will operate to pass the rights and liabilities under the contract to the principal.

By the rules of court, and under our jurisprudence, a defendant acting on behalf of a known and disclosed principal incurs no liability. see the case of QUA STEEL PRODUCTS LTD V. BASSEY (1992) 5 N.W.L.R. PART 239, where it was held that "An agent is not liable and cannot be sued or joined in a suit for the wrongs of his principal where the principal is disclosed. In such a case only the disclosed principal is liable and only can be sued."

The law is now well settled that the only reason which compels the joining of a party to an action is that such a party joined, is in a position where he would be bound by the result of the action and as a corollary the action must contain a question or questions which cannot be effectually, effectively or completely settled unless he is a party.

May i humbly refer you to CMI TRADING SERV LTD V. YURIY (1998)11 N.W.L.R (pt573) where the court held as follows

A person sought to be joined in a proceeding must be someone whose presence is necessary as a party. To be a necessary party it is not enough that the person sought to be joined has relevant evidence to adduce as that will only make him a necessary witness, nor that he merely has an interest in the correct solution of some questions involved and has thought of some relevant arguments to advance and is afraid that the existing parties may not advance them adequately. Rather, The only reason which makes it necessary to make a person a party to an action is that he should be bound by the result of the action, and the question to be settled therefore must be a question in the action which cannot be effectually and completely settled unless he is a party.

I submit that a person to be joined in an existing action must have a direct or legal interest in order to take advantage of the rules governing joinder of parties. It is not enough that he has an indirect interest. A person is legally interested if the answer to the question in issue may curtail his rights. Thus, the only reason which might render the presence of a party before the court to be necessary to enable the court to adjudicate completely within the meaning of the rule is that he should be bound by the result of the proceeding.

My lord, we further submit that a quick look at the paragraphs of the statement of claim discloses no claim made against the 6th Defendant/Applicant or any specific relief sought against the 6th defendant/Applicant, neither has the 6th Defendant/Applicant been accused of any wrong doing. May i humbly refer you to MIL ADM. AKWA STATE V. OBONG (2001)1 N.W.L.R (pt694) where the court held as follows

A plaintiff cannot sue a defendant against whom he has no cause of action; neither can he sue a defendant who has no locus standi in his contemplated action.

There is no better evidence or notice of a case a party intends to make at the trial than his statement of claim. It is improper to join as co-defendants parties against whom the plaintiff has no cause of action and against whom he has made no claim and whose interest is adverse to that of the defendants.

May i humbly refer you to ONWUKA V. MADUKE (1998)4 N.W.L.R (PT 547) where the Court held as follows

Misjoinder of parties deals with parties wrongly or improperly joined by the plaintiff at the inception of the action. Its provisions grants the court discretionary power to strike out name or names of any party or parties, whether as plaintiff or Defendant improperly joined at any stage of proceedings.