Lawyer Frowns At Rejection Of Nigerian Judgment In UK

African countries, particularly Nigeria, are ever eager to have foreigners invest in their countries, but some foreigners are quick to abuse this advantage and the opportunity of doing business in Nigeria by avoiding their obligations to respect Nigerian legislation and judicial system.

An example of this abuse is one involving an oil company, Petrodel Resources Limited, and one of its expatriate employees.

Barrister Tope Elusogbon, a legal practitioner in Nigeria and a lawyer to Petrodel Group is concerned that Nigerian businesses need to be alert with regards to the antics of foreigners, and referred to a case involving the company and one of its former employees, a Briton, Timothy Le Breton.

In 2002, the company employed Timothy Le Breton as Chief Operation Officer/Managing Director and his responsibilities were spelt out, among which were that he is to directly report to the Executive Chairman and the board of the company.

However, he was said to have been absent from work without approval in January 2007 and refused to undertake his duties. He also relocated from Nigeria to Monaco in spite of repeated demands, e-mails and telephone calls to him to resume his duties in Nigeria.

On 27 July, 2009, Petrodel Resources Limited had no option than to sue Timothy Le Breton for breach of contract, wherein it claimed the sum of $9 million, being special and general damages for breach of contract. The trial took over two years and was concluded in 2011.

The Chief Executive of the company, Michael Prest and the Financial Controller tendered financial statements for the years 2005, 2006 and 2007, showing losses of up to $6,632,419 suffered by the company, and allegedly occasioned by Mr. Le Breton.

It was also alleged that the defendant, while in the employment of the company, secretly set up and operated several companies in breach of the terms of his contract of employment and restrictions. He was said to have allegedly canvassed existing and prospective customers of the company and solicited key suppliers of goods and services of the company to other companies.

He took up another appointment as a Director of Ayedan Global Limited Snowders, Lanaza and I-oladed between 2006 and 2008, earning remunerations and allowances from the said companies when he was in the employment of the Petrodel Group.

However, the defendant escaped justice by using the United Kingdom’s legal system by feigning that he had little link with Nigeria, while playing the Nigerian legal system, despite being served with all court processes and hiring a counsel in Nigeria to first defend his position. He then watched from the sidelines as the legal battle raged.

In her judgment, Justice Morenike Obadina said the company is entitled to award of general damages for breach of contract of employment, and consequently awarded $500,000 in favour of the company.

In an attempt to enforce the judgment against Le Breton in the Isle of Man in United Kingdom, Le Breton opposed the enforcement and argued that the judgment is unenforceable because he does not recognise the jurisdiction of the Nigerian court over him. Surprisingly, Le Breton’s argument was upheld by an Isle of Man court presided over by Justice Deemster Corlett.

In effect the Isle of Man court has refused to recognise the competency of the High Court of Nigeria and also failed to recognise the Nigerian judgment.

This development has brought into focus the supposed reciprocal enforcement of judgment laws operating in the United Kingdom and other foreign countries.

Mr. Tim Le Breton and his company, Ayedan Global, are still operating in Africa and competing for business on African soil.

Mr. Elusogbon contended that it is expected that African countries, particularly Nigeria, need to review their relationship with would-be investors like this and make policies that will prevent the ridicule or mockery of the Nigerian judicial system.