The Federal High Court in Lagos has ordered Standard Chartered Bank Nigeria Limited to pay a staggering N2.9 billion in damages for negligence in its dealings with Celplas Industries Nigeria Limited.

The judgment, delivered by Justice Akintayo Aluko, also awarded $743,628 in compensation to the company, marking a significant victory in a case that highlights corporate responsibility and contractual obligations.

The dispute revolved around the bank’s failure to honour a clause in a 2014 loan agreement, which required converting a $10.8 million term loan to naira when the exchange rate was still N199/$1.

Celplas claimed this negligence led to massive financial losses, including business disruptions, psychological trauma, and a damaged reputation.

Standard Chartered had approached the court in 2020, seeking declarations to absolve itself of any liability under the loan agreement. However, Celplas countered with a 172-paragraph defence and counter-claim, arguing that the bank’s refusal to convert the loan cost the company billions in lost profits and operational setbacks.

Justice Aluko, citing extensive legal authorities, upheld Celplas’ claims, describing the bank’s actions as a breach of its contractual obligations. The court awarded:

N2.772 billion for special damages, covering lost business earnings and consultancy fees.

$743,628 for additional financial losses.

N200 million in general damages for mental anguish and reputational harm.

N1 million as legal costs.

This ruling underscores the importance of upholding contractual agreements and could set a precedent for similar cases involving corporate negligence.