Court Orders Ecobank To Pay N72.2 Billion In Damages To Honeywell

One of Africa’s commercial banks, Ecobank, has been ordered to pay the sum of N72.2 billion in damages to Honeywell Flour Mills Plc.

The directive was given on Tuesday by Justice Liman of the Federal High Court in Lagos, Naija News reports.

Honeywell Flour Mills is said to have filed a suit against ECOBANK in 2018. In the suit FHC/L/CS/1554/2018, the company seek legal redress for the losses incurred due to an ex-parte asset freezing order granted to Ecobank Nigeria in 2015.

Ecobank was said to have sworn an oath to indemnify Honeywell Flour Mills if the ex-parte orders were deemed frivolous.

In his arguments, Counsel to Honeywell Flour Mills, Bode Olanipekun, SAN, argued that the Supreme Court’s determination that the ex-parte orders obtained by Ecobank were improper implies that the application was frivolous.

This led to Honeywell Flour Mills seeking damages for losses suffered. Throughout the proceedings, Olanipekun contended that Ecobank’s actions inflicted significant harm and financial losses on business operations.

While delivering judgement on the case yesterday, Justice Liman held that “The plaintiff’s right to the damages sought had crystallised, and the plaintiff had a right to maintain this action.”

The court judge added that “The argument of the defendant has no basis.”

Reacting to the court’s judgement, Olanipekun said: “It’s a commendable decision and precedent in an area of our jurisprudence that has been scarcely tested. The court has awarded damages in a claim brought on the premise of an undertaking given for the grant of ex-parte orders which both the Court of Appeal and Supreme Court have found were improperly sought and granted.”

All four reliefs sought by Honeywell Flour Mills to the tune of N72.2 billion were granted in their entirety by Justice Liman.

The court said: “The defendant’s arguments in this regard cannot stand. I have no hesitation in granting reliefs in favour of the plaintiff.”