Justice O.O Abike-Fadipe of the Lagos High Court, Ikeja, yesterday awarded N50 million against Union Bank Nigeria Plc., as damages for unlawful deduction and illegal penalties made on the account of NICON Investment Limited by the bank.

But dissatisfied with the decision, the bank in a statement yesterday stressed that it would appeal against the judgment. In the statement signed by its Chief Brand and Marketing Officer, Mrs Olufunmilola Aluko, the bank said: “While we respect the authority of the court, we strongly disagree with the judgment delivered and have instructed our lawyers to file an appeal against it immediately.

Delivering judgement in a suit filed by NICON against the bank, justice Abike-Fadipe dismissed the bank’s entire counter-claim, and awarded another N10 million in favour of the claimant and the 3rd defendant to the 1st counter-claim, Chief Jimoh Ibrahim respectively and severally.

The claimant had sued the bank praying for 17 reliefs, among which is a declaration that the defendant cannot unilaterally transfer money from the claimant’s account to liquidate Global Fleet’s indebtedness to it without the due authorisation or consent of the claimant.

In reaction, the bank filed its defence and a counter-claim against the claimant, Global Fleet and Ibrahim. The three defendants to the counter-claim equally filed separate counter-claims against the bank.

In her judgment, the court held that the amount standing to the credit of the claimant in its fixed deposit account domiciled with the defendant bank is to the tune of £130,720,557.06 as at April 30, 2010.

The defendant bank’s unilateral act of converting the sum of £130,720,557.06 from the claimant’s fixed deposit account to U.S. Dollars without the due authorisation and/or mandate of the claimant is wrongful, null and void.

“The defendant bank’s unilateral act of converting the fixed deposit of the claimant from British Pounds Sterling to U.S. Dollars and Dollars to Naira is unauthorised and is null and void.

“The pounds sterling fixed deposit account of the claimant is not tied to the indebtedness of Global Fleet Ltd and/or meant in any way or manner whatsoever to provide security for the said debt.

“The defendant bank’s unilateral use of part of the claimant’s income of €130,720,557.06 to liquidate Global Fleet Ltd debt without the mandate and/or due authorisation of the claimant is wrongful, null and void,” the court held.

The court held that the defendant cannot unilaterally deal with or make any deduction from the fixed deposit account of the claimant without the authorisation, mandate or consent of the signatories to the fixed deposit account as on the mandate card.

It insisted that the defendant cannot unilaterally transfer money from the claimant’s account to liquidate Global Fleet indebtedness to it without due authorisation.

“The sum of N50 million is awarded to the claimant against the defendant as damages for unlawful deduction and illegal penalties and charges made on the account of the claimant by the defendant.

“The defendant is directed to avail the claimant its statement of account of its fixed deposit account as well as reconciliation of same from inception till date.

“The defendant is directed to render an account of all the transactions on the claimant’s pound sterling fixed deposit account together with all accrued interests thereon.

“An order setting aside all acts of the defendant pertaining to and/or connected with and affecting the claimant’s pounds sterling fixed deposit account vis-a-viz its conversion to U.S. Dollars, Naira and unilateral liquidation of the indebtedness of Global Fleet Ltd and NICON Investment Limited from the said account,” the court declared, and awarded the sum of £1 million as damages for the defendant’s breach of its fiduciary duties to the claimant and negligence.

However, the bank’s Chief Brand and Marketing Officer, Mrs Olufunmilola Aluko, said: “While we respect the authority of the court, we strongly disagree with the judgment delivered and have instructed our lawyers to file an appeal against it immediately.

“The court’s findings, including its position on the consolidation of indebtedness, locus standi, and third-party liability, are at variance with established legal principles and the Bank’s understanding of the facts.

“We are confident in our legal position and intend to vigorously pursue all lawful avenues to ensure that justice is served.” It added that the bank had previously transferred the relevant debt obligations to the Asset Management Corporation of Nigeria (AMCON), arguing that all of its actions were taken in line with applicable laws and banking practice.