After seven years of legal battle, a Lagos High Court, Igbosere has awarded the sum of $10 million against South African retail giant, Shoprite Checkers (PTY) Limited and its business partner, Retail Supermarkets Nigeria Limited for a breach of contract entered with a Nigerian firm, AIC Limited in 1998.

In a landmark judgment delivered by Justice Lateef Lawal-Akapo on November 30, 2017, but exclusively obtained by The Guardian yesterday, the court held that the defendants were in breach of the agreement when they (Shoprite and Supermarkets) went secretly behind AIC Limited promoted by Chief Harry Akande to establish Shoprite outlet in one of the locations earlier shown to them by the claimant.

The court also held that the claimant was duly entitled for compensation for such a breach and awarded the sum of N1million against Shoprite as cost of the action as well as an interest at the rate of 10 per cent per annum effective from the date of judgment until final liquidation of the entire sum.

According to the court, claimant has, as a follow up of South Africa meeting of April 16, 1998, incurred expenses, which included preparing and registering Shoprite-AIC Limited. Preparing feasibility reports, applying and procuring visas for the defendant’s representatives that visited Nigeria on May 27, 1998 as well as organizing another meeting at its own expense slated for its office in Victoria Island on May 27, 1998.

In the suit marked LD/488/2010, filed by AIC counsel, Prof Taiwo Osipitan (SAN), the company through its promoter, Chief Harry Akande has sought for a declaration that by virtue of its agreement with the first defendant (Shoprite Checkers Limited), for a joint venture to be formed by the claimant and the defendants is entitled to exclusively operate and manage the first defendant ‘s Shoprite brand in Nigeria and elsewhere in the coast of West Africa except Ghana.

The claimant among several claims, asked for an order of court for payment by the first defendant the sum of $2.23 million another N13.6 million as special damages and 50 per cent of $92.3 million as loss of profit it suffered as a result of the incorporation of Retail Supermarkets Nigeria Limited (second defendant) by the first defendant for the flagrant breach of the agreement for the period 2005 to 2009.

The claimant said that the agreement was breached when the first defendant sidelined it and incorporated the second defendant in flagrant breach of the contract.But the first defendant through their counsel, Funke Adekoya SAN, contended that there was no joint venture agreement between the claimant and the first defendant.

The defendant contended that the claimant has failed to discharge the burden of proof, but attempting to support its week case and argument by piecing disjointed material together.The defence, which called five witnesses, urged the court to dismiss the claims for the claimant’s failure to adduce concrete evidence of non-execution of a joint venture agreement.

In the suit, the defence in their addresses dated April 4, 2016 and adopted by counsel, formulated two issues for resolution, namely; has the claimant established the existence of a joint venture agreement or any other agreement between it and the first defendant.The court was also asked by the parties to resolve whether the claimant has established any claim against any of the defendants.

In the resolving two issues set before him, the trial judge in a 57 paged judgment held that there were business discussions between parties leading to meetings held both in South Africa on April 16, 1998 and at the claimant office in Victoria Island on May 27, 1998, which amounted to an agreement.

It was also the affirmation of the court that the first defendant sent representatives, who flew into Lagos in furtherance of the on-going business discussion and were conducted to some specific locations, like Lekki Roundabout, Lekki Peninsula, near Victoria Island, Trade fair Complex, Lagos National Theatre, Iganmu and others.

The court also looked at extracts from the meetings in South Africa and Lagos before reaching a conclusion that the two meetings took place in 1998 prior to the establishment of Shoprite out let in Nigeria in 2005.

The compliant has averred that sometime in 1997, it conceived of a business idea of developing and establishing mega stores/ retail supermarkets in Nigeria similar to Shoprite Chain Store Supermarket in South Africa and Sainsbury Supermarket of the United Kingdom for profit and further enhance its good will and reputation in the Nigerian Business community.

This led to several meetings between parties and entering into a joint venture agreement, which was to exclusively operate Shoprite Checkers’ brand in Nigeria and elsewhere in west coast of Africa except Ghana.

http://guardian.ng/news/court-awards-10-million-damages-against-shoprite-for-contract-breach/?F

woow

7 years in court?? U need money to get justice I tell u... Wedding MC

Oh

Shop agbasa na!

Thank God I go soon hamer

Great news - After all that South Africans do to Nigerians on a daily basis.

I've got no love for them.

It remains Mtn to pay 1billion for unsolicited calls and text messages, even unsolicited subscriptions. These Southy companies are thieves.

Let justice prevails

Good judgement.

In other news....

Just this morning the keke I entered jammed A Range Rover From Behind
All Of Us, Including The Driver Ran Away

okkk.... made fp at last... dedicate it to ma friends and family ;Dokkk.... made fp at last... dedicate it to ma friends and family

serves them right

This one na bad market for shoprite oooo

hope it's justifiable, let's not chase investors away

They want shoprite to run back to south Africa

I knew Chief Harry Akande will surely win in court.

ShopRite is using Political patronage to run her business in Nigeria.

Them Go Still Slash The Money Mtcheew
Ask Mtn And Dstv

Power of record keeping and proper documentation

Nice one... E remain Mtn and Dsthieves

S.A businesses in Nigeria and their double standards. SMH

dat very good

I don't know which foreign nationals I can't stand more, Indians, Chinese, Lebanese or South Africans?
These people come into our country with loans from their own government to invest, but what they really do is take advantage of our stupid government policies and labour laws. They abuse our people and rape our economy.
So, please don't blame me for enjoying this piece of news.

Nigeria can be annoying.. Those in power enforce all the known and unknown laws just to estort money and frustrate foreign investors..

WE tried it with MTN, we've succeeded in chasing Etisalat away..
It's now shoprite

You keep Collecting taxes from these companies but provide nothing in return for them.. They provide their own power 247,security, water, road,.



.... . Are we cursed? ?

Yes

i think this good cos u need to see the way they treat their staffs and trust me no Nigerian company
can do half of what they do in SA b4 they kick you out.

Dem no born any Nigerian company in SA well make you move money out from SA to Naija the way
they do here.

Its time to let them that there are laws also in this country and when you break them , you pay for it

loss

After seven years

Let's see if they will pay or call EFCC to arrest him.

That money is huge, I like it

dreamworld:
That money is huge, I like it

lol. huge indeed. thats peanuts compared to time and energy spent.. trust me when i tell you 10m is nothing in todays nigeria

I guess we will be seeing uncle Zuma very soon......

aonag:


lol. huge indeed. thats peanuts compared to time and energy spent.. trust me when i tell you 10m is nothing in todays nigeria

its 10 million dollars not 10 million Naira

aonag:


lol. huge indeed. thats peanuts compared to time and energy spent.. trust me when i tell you 10m is nothing in todays nigeria

Bro, we are talking 10 mil in dollars here.