The Nation Newspaper

Tag: Breach of contract

  • Breach of contract: Oil firm appeals court ruling

    An oil firm, Petroleum Zion Nigeria Limited, has appealed against a Lagos High Court, Igbosere ruling in a case of breach of contract against two foreign oil firms and some Nigerian companies.

    Petroleum Zion sued PJT Partners UK Limited, Wilmington Trust (London) Limited and eight other firms before Justice Olutoyin Ipaye.

    The suit is over alleged breach of contract, breach of confidentiality obligations and unlawful interference with economic interests.

    FHN 26 Limited, African Capital Alliance Limited, Vertex Energy Limited, Capital Alliance Nigeria Limited and Femi Bajomo, Simon Jonathan Appell, Daniel Imison and Ms. Catherine Williamson are the defendants.

    The plaintiff claimed that the defendants unlawfully interfered with its transaction to purchase Afren’s stake in Oil Mining Lease (“OML”) 26, with a production potential over 10,000 barrels of oil per day.

    However, in separate preliminary objections, four of the defendants, First  Hydrocarbon Nigeria Limited, FHN 26 Limited, Vertex Energy and Capital Alliance Nigeria Limited, asked the court to strike out their names from the suit as they were not necessary, desirable or proper parties to the suit.

    In her ruling last November 7, Justice Ipaye upheld all preliminary objections raised by the four defendants and struck out their names.

    Dissatisfied, Petroleum Zion on November 20 filed a Notice of Appeal through their lawyer Messrs Ubani & Co challenging the lower court’s decision.

    The firm is contending that the trial judge erred in law when she struck out First Hydrocarbon Nigeria Limited and FHN26 Limited from the suit on the ground that Petroleum Zion (Exploration & Production) Limited failed to show any reasonable cause of action against them.

    The appellant also argued that the trial judge erred in law when she struck out Vertex Energy and Capital Alliance Nigeria Limited from the suit on the ground that Petroleum Zion (Exploration & Production) Ltd failed to show any reasonable cause of action against her.

    The appellant is praying the Court of Appeal to allow the appeal and set aside the lower court’s ruling.

    The appellant is seeking from the upper court an order that the case file be transferred to another judge for trial.

  • Breach of contract: Court awards N2.6b to firm

    The Federal High Court in Lokoja, Kogi State, has ordered Dangote Group Plc and three of its subsidiaries to pay N2,697,125,000 to a mining firm over breach of contract.

    The other subsidiaries are Dangote Cement Plc, Obajana Cement Plc, and Dangote Industries Plc.

    Justice Phoebe Ayua made the order in a judgment on a suit filed in 2014 by a mining company, Quest Two Enterprises Ltd and its Chief Executive Officer, Sir Paul Akanegbu.

    The plaintiffs claimed various sums for breach of contract, special damages and specific performance of Dangote’s obligations contained in two Memoranda of Understanding dated January 2, 2014 and February 10, 2014.

    Dangote had counterclaimed for N3billion, stating that the plaintiffs’ action in constructing and erecting electricity poles and other structures amounted to trespass on their mining lease area.

    The court dismissed their counterclaim. The judge noting that during trial, Dangote’s sole witness, the group’s General Manager Mr Victor Mohan, admitted under cross-examination that his employers, with a promise of paying compensation, had dismantled the plaintiffs 33KVA power lines, an act which shut down the plaintiffs’ mining operations since 2014.

    The judge held that the defendants failed to pay any compensation to the plaintiffs.

    Lagos lawyer, Pius Ugochukwu Nnoli represented the Plaintiffs; Noah Abdul from the firm of O. J. Onoja (SAN) represented the defendants.

    The court, following a motion filed by the judgment-creditor for enforcement of the judgment, has also granted a Garnishee Order Nisi against 21 banks where the judgement-debtors may have funds for attachment to satisfy the judgment debt.

    But, Dangote Group’s defence team have filed a Notice of Appeal at the Court of Appeal, Abuja Division.

    They have also brought an application before the lower court for stay of execution of the judgment.

    The application will come up on January 9 next year.

     

     

  • Record label sues Kiss Daniel over ‘breach’ of contract

    Record label sues Kiss Daniel over ‘breach’ of contract

    Just as singer Oluwatobiloba Daniel Anidugbe, aka Kiss Daniel, is about to stabilise his newly launched Record label, Fly Boy Inc., with which he just released ‘No Do’, G-Worldwide Entertainment is putting up a fight, claiming their contract with the estranged singer is yet to expire.

    The latter has taken the matter to court, stating that Kiss Daniel signed a 7-year Recording and Artist Management Contract with the Company in 2013, and cannot opt out prematurely.

    A statement signed by Calmhill Partners, Counsel to G-Worldwide Ent. Ltd. stated: “The attention of G-Worldwide Entertainment Limited (‘the Company’) has been drawn to acts by Oluwatobiloba Daniel Anidugbe (alias ‘Kiss Daniel’), who recently has been making publications on different print media and social media platforms soliciting for bookings to perform songs from his album ‘New Era’ and ‘Evolution’.

    “Mr. Anidugbe executed a 7-year Recording and Artist Management Contract (‘the Contract’) with the Company in 2013 and which contract is still subsisting.  Contrary to the express provisions of the contract, Mr. Anidugbe has taken steps to appoint a new manager, solicited for bookings, and has continued to negotiate and enter performance agreements in respect of the songs from the album ‘New Era’, and ‘Evolution’ which is set to be released soon containing singles such as ‘Yeba’, ‘For You’, ‘Senorita’, ‘Sofa’ and others, both produced under the contract, including using the stage name ‘Kiss Daniel’ without the company’s prior consent and permission”.

    The statement further says that the company has approached the Federal High Court, Lagos in suit no. FHC/L/CS/1758/2017 between G-Worldwide Ent. Limited Vs Oluwatobiloba Daniel Anidugbe to affirm its rights over the intellectual property under the contract, which includes copyrights over the songs in both albums, and rights over the stage name: ‘Kiss Daniel’, by an application dated 20th November 2017.

    The company has therefore sought interim orders of injunction, and other further orders as the court may deem fit to make, against Mr. Anidugbe, restraining the artiste’s further distribution, publication, or performance of these songs, or negotiating or entering any agreement thereof without the consent or permission of G-Worldwide Entertainment Ltd.

    On November 30th, 2017, the Federal High Court made an order that status quo ante bellum under the contract, be maintained by the parties, pending the hearing and determination of the motion on notice filed in the suit. The import of the order being that the state under which the parties existed under the contract should be preserved until the court makes a determination of the motion on notice filed by the Company.

    “All and any dealings in respect of the upload, distribution, and or performance of any of the songs, as well as the use or exploitation of the name ‘Kiss Daniel’ can therefore only be entered or made with the prior written consent and permission of the Company as provided under the contract,” says G-Worldwide.

    According to the music company, “The general public and the whole world is further cautioned that as the matter is now before a Court of law (subjudice), and following the order to maintain status quo, any unauthorized upload, distribution, exploitation, performance, sales, and use of the songs; from the ‘New Era’ and ‘Evolution’ albums, or stage name ‘Kiss Daniel’, in any show, event, downloading or streaming platform, will be in violation of the Order of the Federal High Court. Anyone who does or continues to do so shall be liable as an accomplice for contempt of court, and the full weight of the law will be brought against that person as a contemnor.

    “The final note is that any person or organization who negotiates, or enters into any agreement with Mr. Anidugbe, to engage him on the basis of his presumed rights over the songs in both albums, or the use of the stage name ‘Kiss Daniel’, does so at his or her own risk and peril.”

    Though Kiss Daniel is yet to officially react to the development as at press time, on Tuesday, he took to Instagram to write, “Oluwatobiloba Daniel Dhikrullah Anidugbe, this is gonna be a sweet victory for you young man.#Nodo #warning #sense.”

  • Firms seek N50m over alleged breach of contract

    JUSTICE Femi Adeniyi of an Ikeja High Court has fixed May 9 for further hearing in a suit filed by        Omega City Ventures Limited, Oshomak Ventures Limited and Steel Works Limited, against the Managing Director and Executive Vice Chairman of Sifax Group Nigeria Limited, Dr. Taiwo Olayinka Afolabi and his company over alleged breach of contract.

    The judge fixed the date after the claimants closed their case.

    They are praying for an order of the court for “immediate and unconditional payment of N90 million by the respondents to the first claimant being the 10 percent commission of N900 million purchase price in respect of service rendered to the defendants as estate agents in getting the defendants the property formerly known as No 212, Moshood Abiola Way, Ijora measuring approximately 13,800 square metres.”

    The plaintiffs claimed that they were into real estate, property development and general contracts duly incorporated under the companies and Allied Matters Act 1990.

    They claimed that the first defendant sought to buy the property at Ijora, Ebutte-Metta and Surulere axis of the state for business purposes which the claimants reportedly executed.

    The claimants averred that the “third claimant got the property and introduced to the second defendant, who in turn, linked and introduced the said property to the first claimant has direct link with the defendants. The first claimant introduced the property to the defendants via her letter of 28th july 2014 titled, Steel Fabricator for Sale.

    “The first claimant did not only introduce and describe the property to the defendant but also attached all necessary title documents which included but not limited to Governor’s consent registered as no 76, page 76 volume 2083 and dated 17/7/2003.

    “The claimant made it clear to the defendant that she will be collecting a professional fees of 10 percent of the purchase price of the property to which the defendant till date never disputed. The claimant hereby pleaded the said letter of 28th July 2014 which was received and acknowledge by the defendant on July 30, 2014.”

    The claimants subsequently prayed the court to order the defendants to pay N50 million general damages for the stress, trauma and the untold hardship suffered by them.

    The defendants, however, denied the claims.

    They are praying the court to dismiss the suit.

    The defendants are expected to open their defence at the next hearing.

  • Firm sues bank, others for ‘breach of contract’

    A company, Style 4 Less Limited, has sued Skye Bank Plc and others at an Ikeja High Court, Lagos for alleged breach of contract.

    It is alleging unlawful occupation of Suite 001 of a building on 56, Opebi Road, Ikeja, said to be owned by a cleric but managed by Meridian Properties Limited.

    The company said it rented the  suite for N1.5 million in addition to paying agency and legal fees, damage deposit, service charges and diesel surcharge.

    After a year into the tenancy agreement, Style 4 Less said the property manager increased the rent and demanded for additional fees which it had earlier paid.

    When the company refused to comply with the new charges, its electricity supply was cut off.

    Style 4 Less said its offer to pay for the service charge and diesel surcharge was rebuffed by the property manager.

    The matter was taken before an Ikeja Magistrate Court, which ordered the reconnection of the power supply which was done but was disconnected again.

    The plaintiff further added that as a result of the office being disconnected, Style 4 Less continued to incur huge financial losses as it could not showcase its goods.

    While the matter was still pending before the court, the property manager locked up the shop and prevented the company from gaining access to its goods which it said is worth N9.2 million.

    The plaintiff claimed that its goods were locked up in a store room of the property management company.

    It said the space was given to  Skye Bank which now occupied the entire ground floor and on which the Bank’s ATM machines have been fixed.

    According to the plaintiff, its goods which were seized by the property company in 2013 has not been released.

    It further claimed that it lost N50 million in sales and customers patronage during the period.

    The plaintiff, through its lawyer, Miss M. A. Bamidele, is demanding N90million damages from the defendants for disturbance of its use and occupation of the suite, removal of its goods without its knowledge and for alleged threats and harassment of the company’s management.

    The High Court case is yet to be assigned to a judge, while the one at the Magistrate’s Court  will be heard on February 8.

  • Court slams bank with N2.5b damages for breach of contract

    A Court of Appeal sitting in Akure, Ondo State, on Tuesday awarded the sum of N2.5 billion as damages against Skye Bank Plc for breach of contract against Tuns Farms Ltd, Osogbo.

    In a unanimous judgment delivered by Justice Denton West, the court upheld the earlier judgment of an Osun state High Court sitting in Osogbo which had in March last year ordered Skye Bank Nigeria Plc to pay N2.5 billion as damages to the farm.

    The three-member panel of judges dismissed the appeal filed by the Skye Bank Nigeria Plc and averred that the lower court had the right to award both special and general damages to the appellant for breach of contract.

    Justice Oyejide Falola of an Osogbo High Court had last year ruled that the Skye Bank Nigeria Plc erred in law by its non-fulfillment of contractual agreement entered into on a loan facility of N2 billion with the farm.

    Justice Falola also ruled that the bank exhibited poor corporate governance and poor diligence in handling the Central Bank of Nigeria (CBN) loan which was paid into the account of Skye Bank Plc for disbursement to the bank customer.

    Tuns Farm Nigeria Limited had dragged an Osogbo branch of the Skye Bank Plc before the court for disbursing the sum of N300 million out of the N2 billion loan it secured from CBN under a special loan facility called Commercial Agric Credit Scheme.

    According to the plaintiff, efforts made to get the bank to release the balance of N1.7 billion did not yield any positive result as the bank held that it had used the balance to offset a loan previously obtained by the farm. But the Skye Bank disagreed with the arrangement, saying that the previous loan had been taken over by the Asset Management Company of Nigeria (AMCON) and appealed against the judgment of the court by filing an appeal at the Akure division of the Court of Appeal.

    However, the Court of Appeal dismissed the appeal for lack of merit and ordered the bank to pay the damages. Justice West held that “banks should maintain the economic buoyancy of Nigeria and beneficiaries of credit facilities should use the facility for the benefit of the nation to reduce the level of unemployment in the country.”

    The court also overruled the preliminary objection of the appellant and awarded N2.4 billion as special damages and N150 million as general damages against the bank.

    Justice West maintained that “the respondent needs special damages for breach of contract, having fulfilled all conditions for the release of the credit facility.”

    The lead counsels to the appellant and respondent, Messrs Dipo Olasope and Alex Owoeye respectively hailed the judgment.

    The ruling is a follow-up to the sum of N902 million special and general damages awarded against the bank last week Friday in the same court but in a different case between the bank and Tuns International Holdings for the injury that the company, owned by Asiwaju Musulumi of Yorubaland, Khamis Olatunde Badmus, suffered in the hands of the bank in a business transaction .

    The damages which was upheld last Friday was first awarded by Justice A Aderibigbe of Osun State High Court of Justice sitting in Osogbo.

  • Breach of contract Tavria to pay Afolabi N16m

    Breach of contract Tavria to pay Afolabi N16m

    The world’s soccer governing body, FIFA, has fined Ukrainian football club Tavria Simferopol $100,000 (about N16m) over an employment dispute with a Nigerian player and banned the club from registering any new players before the winter transfer window of 2013.

    On Oct. 25 FIFA’s Dispute Resolution Chamber ruled Tavria should pay Abdulwaheed Afolabi $100,000 in outstanding remuneration and compensation for breach of contract.

    “Furthermore, a ban from registering any new players, either nationally or internationally, for the two next entire and consecutive registration periods was imposed on the Ukrainian club for having breached the relevant contract without just cause,” read FIFA’s decision, delivered to Tavria on Nov. 6.

    In turn, Tavria’s official website announced that the club intends to appeal the decision at the Court for Arbitration in Sport in Lausanne, Switzerland.

    This summer, Afolabi, a 20-year old Nigerian national, left Tavria unceremoniously and eventually appeared at a Russian soccer team. In August the disciplinary committee of Ukraine’s Premier League banned the player for six months from playing football and fined him $540,000.

    Afolabi had argued he had the right to terminate his contract anytime with the club, and had complained about his salary not having been paid in full. However, Tavria disputes his account.

    A survey of Ukrainian soccer players conducted by FIFPro, a global organization representing professional footballers, in February found that 15.5 percent had experienced delays in the payment of their salaries, while 7.6 percent had been approached to consider match-fixing. That means that, on average, almost two of the 22 players on the field will have been offered the chance to fix a game’s result.

    “A player who has to wait for his money has a greater chance of being approached to manipulate a match,” the FIFPro report reads.

    These issues have been brought to the spotlight by a recent hearing over match fixing between two Ukrainian clubs at the Lausanne arbitration court.

    The court will decide whether a 2008 match between Kharkiv Metalist and Karpaty was fixed. Metalist won the game 4-0. In August 2010, Ukraine’s football federation found the match was fixed, and fined and banned the players and club officials from the two clubs in addition to deducting 9 points from each side.

    In their decision, FFU officials pointed to a video made a few days after the game that surfaced in Ukrainian media in 2010.

    The video allegedly shows Karpaty defender Serhiy Lashchenkov telling the club’s honorary president Petro Dymyinsky how the game was fixed. A voice, allegedly Lashchenkov’s, says in the recording that he took $110,000 from Yevhen Krasnikov, Metalist’s sporting director and, along with other senior players, talked his teammates into taking $10,000 each to lose the game.

    The court is yet to deliver its verdict from the February hearing.

    In October, several players from Metallurg Zaoporizhya complained to Ukrainian media that the team hasn’t t received salary payments for the last six months.

    Metallurg’s official website, denied the salary delays and said every soccer player on the team is receiving timely salary payments based on the terms and conditions of their respective contracts.