Lagos Council Boss Sued over Termination of Contracts

A construction firm, Bodmans International Technical Consultants Nigeria Limited has dragged the Chairman of Ifako-Ijaye Local Government Council before the High Court of Lagos State, Ikeja Division demanding the sum of N150 million over alleged termination of contract agreements validly entered into by the council.

Other Defendants in the suit marked ID/9179/GCMW/2022 are Ifako-Ijaye Local government council and Alhaji Uthman Hamzat.

The claimant, in its statement of claim through its lawyer, Owolabi Dawodu, alleged that officials of the first defendant frustrated the execution of the contract for the construction of Araromi market.

The claimant is asking for  an Order of Court directing the 1st Defendant to specifically perform the terms of the contract as contained the Agreement dated 20th day of October, 2014 and in the Addendum to the Contract Agreement dated 31st day of January, 2020.

The claimant is also seeking for an order restraining the 2nd and 3rd Defendants from further disturbance of the performance of the contract by the Claimant.

The firm is demanding  the sum of N50,000,000 as special damage for loss suffered on the land, and additional N100,000,000  as compensation for loss suffered by the Claimant.

Besides, the claimant is seeking for a “Declaration of this Honourable Court that the contract entered into by the Claimant and the 1st Defendant with the terms contained in the contract Agreement dated 20th day of October, 2014 and in the Addendum to the Contract Agreement dated 31st day of January, 2020 is a valid and subsisting contract.

“A Declaration of this Honourable Court that the 1st Defendant’s letter of revocation of contract dated 2nd day of November, 2021 purporting to terminate the contract agreements validly entered into by the 1st Defendant and the Claimant is unconscionable, null and void and of no effect.”

The Claimant averred that it entered into a contract with the 1st Defendant for the redevelopment of Araromi Market, at Old Akute Road, Ifako-Ijaiye, Lagos.

He stated that parties agreed that redevelopment is going to be on a Build Operate and Transfer.

The Claimant averred that it was directed to procure regulatory approvals for the project from various ministries, departments and agencies of the Lagos State Government and all approvals were procured.

The Claimant further averred that the long process obtaining approvals for the project and other documentation occasioned by bureaucratic bottlenecks led to a loss of time and delayed the commencement of the redevelopment project, causing both parties to the contract anxiety and later an addendum to the contract was negotiated, agreed and entered into by the parties.

The Claimant stated that the process of obtaining approvals and other documentation for the project was only completed in March, 2022 when the Lagos State Ministry Physical Planning and Urban Development gave the Planning Permit to the project.

The firm stated that when the 3rd Defendant assumed the office of the 2nd Defendant, the performance of the contract became difficult as the 1st Defendant was poised to frustrate the Claimant.

“The first thing to happen was that the 1st Defendant invited the managing director of the Claimant to a meeting somewhere in Ogba and demanded that the project be split into two as he wanted to give a half of the project to his brother.

“At the meeting, the managing director of the Claimant explained to the 3rd Defendant that she would need to meet personally with anyone who will partner with the Claimant on the project, as the approvals and legal documentation are in the name of the Claimant and also Claimant will discuss the sharing of the cost of approvals and documentation with the proposed partner. It was at this point that the 3rd Defendant changed and decided to frustrate the project and make it unworkable”, the claimant added.

The Claimant stated that after completing the paper work on the project in January, it directed his workers to move to the site on the 22nd day of March, 2022, to commence construction, the 3rd Defendant allegedly physically led a hoard of thugs to the site and attacked the managing director of the Claimant and her staff, injuring some and arrested two of them.

The Claimant averred that the 3rd Defendant falsely claimed to the police that the Claimant had no legal documents to the land.

The Claimant further averred that every effort to get the 3rd Defendant to see reasons on why the contract between the Claimant and the 1st Defendant must be respected has been unsuccessful.