Delivering judgment in the suit on January 17, 2025, Justice Aluko after carefully perused all the processes filed and arguments canvassed by their lawyers, and after citing plethoras of legal authorities, acceded to the request of the defendant/counter-claimant and held that the counter-claims succeed and Judgment is entered for the Counter claimant as follows:
Court has awarded N2.9bn damages against Standard Chartered Bank for negligence.
It was garthed that Justice Akintayo Aluko of a Federal High Court, Lagos, has awarded a total sum of N2,973.000.000 billion, against Standard Chartered Bank Nigeria Limited, for negligence.
The judge awarded the sum in favour of a company, Celplas Industries Nigeria Limited, a defendant/counterClaimant, while delivering judgment in a suit marked FHC/L/CS/1187/2020.
Standard Chartered Bank through it’s lawyers led by Oluwatosin lyayi, filed its right of Summons, Statement of Claim and other accompanying processes on the December 2, 2020 and claimed against the defendant the followings: “a declaration that the plaintiff is not in breach of any of its obligations to the defendant under the Facility Letter (committed) dated 1st September 2914 (2014 BFL) or any of the subsequent BFLs.
“A declaration that the utilisation clause contained in the 2014 BFL does not operate as an automatic obligation on the part of the Plaintiff to convert the Defendant’s US Dollar loan obligations to a Naira loan facility.
“A declaration that the defendant in order to be able to take a benefit of the utilization clause under the 2014 BFL, was required to make a request to the plaintiff for the draw-down of the Naira value of the sum of US$11,500,000.00 (Eleven Million, Five Hundred Thousand United States Dollars) as agreed by the parties by virtue of Facility in clear and unequivocal terms.
“A declaration that the defendant is not entitled to the payment of any sums from Plaintiff pursuant to the 2014 BFL and /or any document pursuant thereto.
“A declaration that the parties by virtue of the 2016 BFLs and subsequently the 2017 and 2018 BFLs, agreed to amend and restate the 1st September 2014 Facility Letter, therefore, the 2014 BFL is no longer binding and/or enforceable between the parties.
“A declaration that the terms contained in the 1st September 2014 Facility Letter are null, void and of no effect by virtue of the Facility Letters executed between the Plaintiff and the defendant subsequent to the 1st of September 2014 Facility Letter
“A declaration that the terms in the 1st September 2014 Facility Letter have become spent and unenforceable by virtue of the terms contained in the 2016, 2017 and 2018 BFLs.
“A declaration that the terms in the 9th August 2018 Supplemental Facility Letter (“2018 BFL”) is that which governs the relationship between the plaintiff and the Defendant. And cost of this action”.
However, the defendant/counterClaimant, Celplas Industries Nigeria Limited, through it’s lawyer, Charles Nwabulu, joined issue with the Plaintiff on February 12, 2021 by filing its statement of defence and counter-claim of 172 paragraphs.
The company thereafter claims against the bank as follows: “a declaration that the refusal of the plaintiff/defendant to counter-claim (contrary to the requirement of the Utilisation Clause of the Facility Letter dated September 1, 2014 and even after several demands to it by the defendant/counter-claimant to convert the outstanding sum of $10,888,856.862 (Ten Million, Eight Hundred and Eighty-Eight Thousand, Eight Hundred and Fifty Six United States Dollars, Eight Hundred and Sixty-two Cents) from the $11,500,000 Term Loan Facility whilst Naira still traded at N199/$1 is a breach of the plaintiff/defendant to counter-claim’s obligation under the utilization clause of the Facility Letter dated September 1, 2014.
“Special damages in the sum of N2, 772, 000 000 (Two Billion, Seven Hundred and Seventy Two Million Naira) and $743, 628 (Seven Hundred and Forty-Three Thousand, Six Hundred and Twenty-Eight United States Dollars) respectively against the Plaintiff/Defendant to Counter-Claim being the cumulative sum for loss of business earnings and profitability between 2019/2020 to 2023/2024 on the Ball Pen Factory sold, Consultancy fees incurred by the Defendant/CounterClaimant, interest paid on the $8,000,000 (Eight Million United States Dollars) trade toan, which expenses/ losses, the defendant/counter-claimant had to incur/suffer as a result of the plaintiff/defendant to counter-claim’s failure to comply with the Utilisation clause of the 2014 Bank Facility Letter by refusing to convert the outstanding sum of $10,888,856.862 (Ten Million, Eight Hundred and Eighty-Eight Thousand, Eight Hundred and Fifty-Six United States Dollars, Eight Hundred and Sixty-two Cents) from the $11, 500,000 Term Loan Facility whilst Naira still traded at NGN 199/$1.
“General damages in the sum of N 700,000,000 (Seven Hundred Million Naira) against the plaintiff/defendant to counter-claim in favour of the defendant/counter-Claimant for the psychological trauma, mental torture and loss of business goodwill suffered by the defendant/counter claimant as a result of the plaintiff/defendant to counter-claim’s refusal to convert the outstanding sum of $10, 888, 856.862 (Ten Million, Eight Hundred and Eighty-Eight Thousand, Eight Hundred and Fifty-Six United States Dollars, Eight Hundred and Sixty-two Cents) from the $11,500,000 Term Loan Facility whilst Naira still traded at NGN199/$1.
“N50, 000,000 (Fifty Million Naira) as the cost of this action.”
Delivering judgment in the suit on January 17, 2025, Justice Aluko after carefully perused all the processes filed and arguments canvassed by their lawyers, and after citing plethoras of legal authorites, acceded to the request of the defendant/counter-claimant and held that the counter-claims succeed and Judgment is entered for the Counter claimant as follows:
“A declaration that the refusal of the plaintiff{/defendant to counter-Claim contrary to the requirement of the Utilisation Clause of the Facility Letter dated September 1, 2014 and even after several demands to it by the defendant/counter-claimant to convert the outstanding sum of $10, 888,856.862 (Ten Million, Eight Hundred and Eighty-Eight Thousand, Eight Hundred and Fifty Six United States Dollars, Eight Hundred and Sixty-two Cents) from the $11,500,000 Term Loan Facility whilst Naira still traded at N199/$1 is a breach of the plaintiff/defendant to counter-claim’s obligation under the utilization clause of the Facility Letter dated September 1, 2014, is hereby made.
“Special damages in the sum of N2, 772, 000 000 (Two Billion, Seven Hundred and Seventy Two Million Naira) and $743, 628 (Seven Hundred and Forty-Three Thousand, Six Hundred and Twenty-Eight Million United States Dollars) respectively against the Plaintiff/Defendant to Counter-Claim being the cumulative sum for loss of business earnings and profitability between 2019/2020 to 2023/2024 on the Ball Pen Factory sold, Consultancy fees incurred by the Defendant/Counter-Claimant, interest paid on the $8,000,000 (Eight Million United States Dollars) trade loan, which expenses/ losses the defendant/counterClaimant had to incur/suffer as a result of the Plaintiff/Defendant to Counter-Claim’s failure to comply with the Utilisation clause of the 2014 Bank Facility Letter by refusing to convert the outstanding sum of $10, 888, 856. 862 (Ten Million, Eight Hundred and Eighty-Eight Thousand, Eight Hundred and Fifty-Six United States Dollars, Eight Hundred and Sixty-two Cents) from the $11, 500, 000 Term Loan Facility whilst Naira still traded at NGN 199/$1, are hereby awarded.
“General damages in the sum of N200, 000,000 (Two Hundred Million Naira) against the plaintiff/defendant to counter-claim in favour of the defendant/counter-claimant for the psychological trauma, mental torture and loss of business goodwill suffered by the
Defendant/counter-claimant as a result of the plaintiff/defendant to counter-claim’s refusal to convert the outstanding sum of $10, 888, 856.862 (Ten Million, Eight Hundred and Eighty-Eight Thousand, Eight Hundred and Fifty-Six United States Dollars, Eight Hundred and Sixty-two Cents) from the $11,500,000 Term Loan Facility whilst Naira still traded at N199/$1, are hereby awarded.
“Cost of the action in the sum of N1,000,000 is awarded in favour of the counter-claimant against the Plaintiff.”
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