Breach Of Contract: Unity Bank Dragged To Court

An insurance company, Sterling Assurance Nigeria Limited has dragged Unity Bank Plc before a Lagos High Court over an alleged breach of contract.

In a statement of claim filed by the law firm of Oluwole Kehinde on behalf of the insurance company, the claimant averred that what led to the current legal hostilities started sometime in 2009 when Unity Bank in exercise of its power of sale under legal mortgage assigned to the insurance company a property situated at Plot 318, Ikorodu Road, Anthony Village, Lagos for a valuable consideration in the sum of N130 million. The deed of assignment between the two parties dated 27 January, 2009 was registered at the Lands Registry at Alausa, Ikeja, Lagos.

After the purchase of the property from the bank, the claimant spent huge resources in payment for agency commission, processing of Governor’s Consent, legal fees and other contingent expenses amounting to N66,200,000; bringing the total sum to N196,200,000.

The claimant further averred that while still making efforts to take physical possession of the property it was discovered that the sale of the property to it had been nullified by a Lagos State High Court on 22 December, 2009 in a suit between Unity Bank Plc and MC Royal Finance Bureau Limited and two others.

The bank failed to inform the claimant of this development and  the claimant obtained the information through third parties.

The claimant, in furtherance of its efforts to take physical possession of the property, filed a suit between Sterling Assurance and Mr. Adebowale Olusegun Kolawole and others at the high court of Lagos state but same was struck out by the court on 13 February, 2012 on the ground that the claimant has no locus standi to institute the action since the court had earlier nullified the sale of the property by the bank to the insurance company.

The claimant averred further that it has not been able to take physical possession of the said property sold to it by the bank since 2009 owing to the defendant’s defective title over the property, which the bank had failed to take proper steps to regularize.

Consequently, the claimant wrote a letter to the bank on 28 February, 2012 demanding for a refund of the purchase price and all other expenses incurred on the property, but the bank failed to accede to the demand of the claimant.

The claimant stated that it has suffered enormous financial losses and grave inconveniences as a result of the property not being in its possession after payment had been made.

The insurance claims against Unity Bank are as follows: the sum of N196,200,000 being the purchase price of the property plus the expenses incurred by the claimant on the property;

The sum of N50 million as general damages against the bank for the inconveniences caused the claimant by the bank as a result of its action and inaction.