Justice Lewis Allagoa of the Federal High Court, Lagos, has transferred a suit filed by Sparrow Global Logistics & Energy Services Limited seeking to recover a disputed $187,000 debt from a foreign firm, Niger Star 7 Limited, to the Lagos High Court.

The judge made the order after hearing arguments from Kolawole Uzamot leading Chioma Ndukwu for the plaintiff (Sparrow Global Logistics & Energy Services) and Mrs. Funke Agbor (SAN) for the defendant (Niger Star 7 Ltd).

In a bench ruling, Justice Allagoa held that from the Plaintiff’s pleadings, the cause of action arose from the consultancy agreement between the parties, hence the subject matter was contractual in nature.

He upheld part of the plaintiff’s prayer and ordered that the matter be transferred to the Lagos State High Court for adjudication.

The Court further vacated all orders previously made in the suit because it lacked jurisdiction to have made them in the first place.

The judge had, on November 1, 2023, granted a Mareva Injunction restraining the defendant or its agents from transferring or dissipating her financial assets to the tune of $170,000 or its naira equivalent pending the determination of the plaintiff’s suit marked FHC/L/CD/2189/2023.

The Mareva Injunction restrained the defendant’s bankers from releasing any part of the $170k determination of the suit.

According to the Plaintiff’s statement of claim, the $187,000 comprises $172,000 being the Plaintiff’s “cumulative consultancy fee for negotiating and processing a reduced value of the Cabotage Bills on the Defendant’s assets” MV “SEVEN INAGHA™, MV “SEVEN ANTARES”, MV “NIGERSTAR 7 ADABA™, CB “CARGO BARGE 32, CB “CARGO BARGE 33, and CB CARGO BARGE 34° respectively.

The Plaintiff also added that the figure includes the sum of $17,200 being 10 per cent of its consultancy fee and compensation claimed as operational costs towards meeting its obligation as assigned by the Defendant, as solicitors’ recovery fee.

Also added to it is the general damages in the sum of N5 million and costs of action in the sum of N1 million.

According to the plaintiff, the defendant’s attitude towards payment demands made the Plaintiff worried and vented her concerns in an email dated September 14, 2023, which did not produce the needed result.

The Plaintiff further averred that despite the numerous reminders for payments on the Cabotage Bills as well as the Plaintiff’s consultancy fees, the Defendant did not yield, prompting it to sue the Defendant.

At the resumption of proceedings on December 6, Plaintiff’s counsel, Uzamot, applied that all banks be discharged except Zenith Bank, which had deposed to an affidavit stating that the defendant maintains an account with her and the sum of $187, 000 had been preserved in compliance with the court order.

Justice Allagoa granted the application as prayed.

The judge then heard the Defendant’s Motion dated November 21, 2023 seeking to set aside the Mareva Order and another order dismissing the suit for lack of jurisdiction.

The Defendant’s counsel Agbor (SAN) hinged the applications on the ground that the disputes between the parties emanated from the consultancy agreement between them, and as such solely contractual and subject to the jurisdiction of the State High Court.

She argued that the matter should be dismissed for lack of jurisdiction.

But the Plaintiff counsel, Uzamot, argued that the matter could be heard at the Federal High Court since it has elements of admiralty matters.

He, in the alternative, urged the court to transfer the matter to the State High Court instead of dismissing it.

In his ruling, the judge obliged this leg of his prayers by ordering that it be transferred to Lagos High Court.