Law/Judiciary
Contract Violation: Court Orders Shell, Daewoo To Pay N15m
A Port Harcourt High Court in Rivers State presided over by Justice Adolphus Enebeli, has ordered the Shell Petroleum Development Company of Nigeria Limited and Daewoo Nigeria Limited to pay the sum of N15.8 million to one Mr David Otiasa as payment for breach of contract agreement entered with his company.
Justice Enebeli also ordered the two oil giants to pay the sum of N380,000 monthly from the date the case was instituted in the court to the date judgment was delivered, as an interest accruing from the contract to Mr David Otiasa, the claimant in the matter.
The trial Judge gave the order last Monday, while delivering judgement on a breach of contract agreement brought against Shell and Daewoo Nigeria Limited instituted by Mr David Otiasa before the court.
The claimant had through his lawyer, Mr Nick Lambert dragged both companies before a Port Harcourt High Court demanding the payment of N15.8 million as the contract sum, another N14 million as general damages as well as N340,000 as interest monthly on the the botched contract.
The claimant through his lawyer prayed the court to grant his prayers. However Justice Adolphus Enebeli in his judgement granted two out of the prayers sought by the claimant and refused to grant the prayer for the payment of N14 million as damages and general damages and added that in doing so, it would amount to awarding double damages against the company.
He stated that the claimant had sufficiently proved his case through exhibits tendered as well as the evidence given by W1 and W2 during the period of the trial.
According to him, Shell Petroleum Development Company of Nigeria Limited and Daewoo Nigeria Limited reneged in their memorandum of understanding (M.O.U) entered with the claimant with regard to the contract.
Justice Enebeli held that both companies were liable because they contravened the M.O.U agreement, wherein they awarded the contract to the claimant.
The Available documents and exhibits A-J before the court tendered by the claimant clearly showed the process for which the contract was awarded. The defendants reneged on their own part by telling the claimant the same contract in which they asked him to mobilise to site, was not in existence after the claimant had borrowed huge sum of money, was wrong”, he stated.
The Shell Petroleum Development Company of Nigeria Limited were the second defendants in the suit and had contended that they were wrongly joined in the matter since they did not enter into any agreement with the claimant, while Daewoo Nigeria Limited were 1st defendants and also held the same position with Shell. Both had earlier asked the court to dismiss the suit for lack of merit.
Speaking to journalists, lawyers to the claimant, Mr Nick A. Lambert and Daewoo, Mr Fubara Minaye lauded the judge for the ruling. However, Mr Fubara Minaye said the judgement was subject to appeal. Lawyer to Shell refused to speak to journalists after the judgement.