In response to the recent court ruling, which awarded N72.2 billion in favour of Honeywell Flour Mills Plc (HFMP) aga

inst Ecobank, prominent lawyer, Mr. Bode Olanipekun (SAN), has commended the Federal High Court.

Justice Liman, sitting in Ikoyi, Lagos, granted all four reliefs sought by the applicants in favour of HFMP.

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.”

The legal dispute, which has been ongoing for eight years, stemmed from a series of allegations and counterclaims between HFMP and Ecobank.

The intense and protracted legal battle kicked off in November 2015 when HFMP sought redress from the court, following Ecobank’s refusal to honour the ruling of the Bankers’ Committee.

Ecobank obtained ex-parte orders from the Federal High Court to freeze HFMP’s assets, including all its bank accounts causing severe challenges to the company’s operations.

HFMP applied for the discharge of the orders, with the court varying the asset freezing orders and allowing the company limited access to its accounts.

On March 2016, Court of Appeal over-ruled lower court’s order and restored HFMP’ right to operate its accounts without any restrictions.

He explained that Ecobank sought the Supreme Court to set aside the appeal, however, it upheld the Court of Appeal’s decision, stating that ex-parte injunction is not permitted in law to be filed in a winding-up petition.

“After the Supreme Court’s upholding of the Court of Appeal ruling in favour of Honeywell Flour Mills, the central point of contention between the parties revolved around the bank’s signed commitment made during its initial application.

“The undertaking explicitly stated the bank’s willingness to bear financial responsibility for any harm or losses suffered by the milling company. This commitment was contingent upon the discovery that the application, which served as the foundation for the ex-parte order, was baseless.

“The drawn-out legal battle continued as Honeywell Flour Mills sought these damages, filing a suit in excess of N72 billion against Ecobank for the damage suffered by the asset freezing order. In its response to the suit, Ecobank filed a preliminary objection with claims that the federal high court does not have jurisdiction to hear the suit and therefore prayed the court to dismiss the case,” the lawyer explained.

In his arguments, Honeywell’s lead counsel, Bode Olanipekun, argued that his client discharged both the legal and evidential burden of proving its claims.

Justice Mohammed Liman agreed with this position, stating: “The defendant’s arguments in this regard cannot stand…I have no hesitation in granting relief in favour of the plaintiff.”

Justice Liman held that the “plaintiff’s right to the damages sought had crystallised and the plaintiff had a right to maintain this action.”