- Lagos court awards damages after ruling Union Bank acted in bad faith during the sale of an Ikoyi property.
[dropcap]H[/dropcap]igh Court of Lagos State has delivered a significant judgment concerning the sale of a property at 6 Moore Road, Ikoyi, following allegations of bad faith and undervalue.
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Justice I.O. Harrison ruled that Union Bank of Nigeria acted recklessly and in bad faith by selling multiple plots of the estate after already settling the deceased’s debt, awarding ₦52,050,000 and another ₦213,735,375, which may accrue as interests over the cause of seven years, in damages to the claimants.
According to the Certified True Copy of the judgement made available to Freelanews, the dispute arose from the estate of the late Otunba Adedoyin Ogunde, whose will and estate management had been contentious since 1999.
The claimants, Mrs. Olubunmi Ogunde and her children, sought to overturn the probate granted to other executors and challenged the sale of the Ikoyi property by Union Bank.
Case Background
The property in question, a mini estate, was sold by Union Bank to recover loans guaranteed by Otunba Ogunde in 1995.
The claimants argued that the sale, conducted through private treaty, was at a gross undervalue.
Valued at ₦112,050,000, the property was sold for ₦60 million, an amount the court found insufficient.
The bank’s witness, Priscilla Esede, testified that the sale occurred after the estate failed to repay the outstanding debt.
However, Justice Harrison noted that after the sale of one plot, Plot 6A, for ₦30 million, the debt was already covered. The bank’s subsequent sale of the remaining plots was deemed unnecessary and in bad faith.
Allegations of Fraud
During the trial, the claimants alleged that the bank’s actions amounted to fraud and reckless disregard for the estate’s interests.
The court heard that the bank misled the estate’s representatives, claiming the property could not be divided, only to partition and sell the land later in smaller plots.
The court concluded that while fraud was not proven against the buyers, the bank’s conduct suggested bad faith, justifying an award of damages.
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Conclusion
The court awarded ₦52,050,000 in damages to the claimants, representing the difference between the property’s market value and the sale price, with millions of naira in interests considering the prevailing CBN rate.
See the CTC of the judgement below.
Ojelabi, the publisher of Freelanews, is an award winning and professionally trained mass communicator, who writes ruthlessly about pop culture, religion, politics and entertainment.
