Pay N1.9b judgment debt, firm tells bank

A shipping company, OAN Overseas Agency Nigeria Limited (OAN), has asked Ecobank Nigeria Plc to comply with a Supreme Court judgment by paying it the sum of $4,581,774.86 estimated at N1, 900,153, 669.94k.

The amount includes the principal sum plus interest, which the bank undertook to pay when it issued a guarantee to secure OAN’s claims.

The judgment debt followed a suit by OAN at the Federal High Court in 2006.

OAN Overseas Agency Nigeria, initiated an admiralty action in 2006 against the Vessel MT Ocean Success and Master of the Vessel MT Ocean Success and Bronwen Energy Trading Ltd.

The plaintiff claimed the sum of $1,986,939.97 as outstanding debt against Bronwen Energy Trading for port and cargo dues, ships’ charges and agency fees, as well as interest.

To secure the claims of OAN at the Federal High Court, the bank issued a guarantee, numbered EBN/1346 on December 1, 2006, in favour of OAN Overseas Agency for $1.9million or whatever sum that may be adjudged by the Federal High Court and appellate courts on behalf of Bronwen Energy Trading Ltd.

In his judgment on March 14, 2011, Justice Dan Abutu, then Chief Judge, awarded OAN the sum of $1,986,939.97 with interest at the rate of 15 per cent yearly from November 23, 2006, to March 14, 2011, and another simple interest on the judgment sum at the rate of six per cent yearly until full liquidation.

Bronwen Energy Trading appealed against the judgment. On December 9, 2014, the Court of Appeal delivered judgment on the appeal, allowing the appeal in part, while sustaining the judgment of the Federal High Court.

But OAN Overseas Agency Nigeria appealed to the Supreme Court against the part of the judgment not favourable to it.

It challenged the part of the judgment where the Court awarded $400,000 in favour of Bronwen Energy Trading without proof as required by law.

Bronwen Energy Trading cross-appealed against the Court of Appeal judgment sustaining the award of $1,986,939.97 plus interests in favour of OAN requesting the Supreme Court to dismiss the claims and strike out OAN’s suit.

On February 18, 2022, the Supreme Court affirmed the Federal High Court and Court of Appeal judgments in favour of OAN Overseas Agency Nigeria sustaining the awards of the sum of $1,986,939.97 plus interest and dismissed Bronwen’s cross-appeal.

Based on the Supreme Court verdict, OAN Overseas Agency Nigeria demanded $4,581,774.86 from Ecobank, inclusive of interest, by virtue of the guarantee issued by Ecobank to pay to OAN on any sum that may be awarded in its favour after all appeals.

Through its counsel, Sylva Ogwemoh (SAN) of the firm of KMO Legal asked the bank to immediately pay the total sum of $4,581,774.86 inclusive of interest awarded in favour of OAN by the Supreme Court in its final judgment delivered on February 18, 2022.

But the bank, which said it was reviewing the decision, later denied liability under the bank guarantee.

As a result, it has now approached the Federal High in a suit filed on May 29, 2020, asking for an interpretation of the Bank Guarantee it issued and the judgments of the Court of Appeal and that of the Supreme Court.

In its application, the bank argued that the guarantee it issued was for the release of the Vessel MT Ocean Success.

In response, OAN has filed its defence to the suit, stating that the action of the bank is an abuse of court process and that the guarantee it issued does not require any interpretation given its clear and unequivocal wording.

Hearing in the matter has been adjourned to October 4, 2022, to enable parties to sort out the issue of service of processes on the second defendant.