Stanbic IBTC may Pay N7bn Damages
- By Onyewuchi Ojinnaka
- Published January 25th, 2010
- News
- Unrated
A stock and real estate business outfit and corporate customer of Stanbic IBTC Bank PLc, Longterm Global Capital Limited, has instituted a N7 billion claim against the bank for damages over breach of contract, negligence, loss of goodwill and business reputation. Joined as plaintiff to the suit before Justice Charles Efanga Archbong of the Federal High Court, Lagos is Mr Patrick Akinkuotu, Chairman and Chief Executive Officer of the stock and real estate firm who claimed to have personally guaranteed the credit facility granted to his firm by the bank.
In their statement of claim, the plaintiffs particularly, alleged that the bank applied indiscriminate and excess interest charges beyond the agreed rate of 16 per cent per annum on the credit facility granted to them by the bank.
It was further alleged that the bank manipulated the account of Longterm Global Capital Limited by receiving some deposits on behalf of the plaintiffs without crediting the account of the company with the said deposits. Furthermore, the plaintiffs alleged that the bank debited their account with a total sum of N37,625,642.59 in excess of 16 per cent per annum interest agreed upon by the parties.
Besides, it was alleged that contrary to the plaintiffs’ mandate to the bank not to sell their 28,745,400 units of Guaranty Trust Bank Plc(GTB) shares below the selling price of N15 per share, the bank negligently and unprofessionally sold the said units of shares at prices ranging between N8 and N9 on May 7, 2009.
It was posited that in view of the bank’s negligent action, the said shares were wrongly sold for a total sum of N260,876,903.21 instead of the targeted sum of N431,181,000, thus causing the plaintiffs to unjustifiably lose the sum of N170,304,096.79.
They contended that the bank knew that the intention to sell the shares was to raise a targeted sum of not less than N431,181,000 so as to offset the outstanding indebtedness of the plaintiffs to the bank.
It was said that as part of liquidating the outstanding sum of N709,782,914.62 loan facility, the plaintiff paid a total sum of N501,607,445.53 to the defendant bank through the 1st plaintiff’s Union Bank of Nigeria Cheque dated October 27, 2009, pointing out that the sum of N1,900,461.72 charged by the defendant in excess of the interest charges which is due to the plaintiffs was not deducted from the sum of the said N709,782,914.62.
The plaintiffs are claiming against Stanbic IBTC Bank Plc the sums of N5 billion and N2 billion as general damages for breach of contract and aggravated damages for loss of goodwill and business reputation respectively.
In their statement of claim, the plaintiffs particularly, alleged that the bank applied indiscriminate and excess interest charges beyond the agreed rate of 16 per cent per annum on the credit facility granted to them by the bank.
It was further alleged that the bank manipulated the account of Longterm Global Capital Limited by receiving some deposits on behalf of the plaintiffs without crediting the account of the company with the said deposits. Furthermore, the plaintiffs alleged that the bank debited their account with a total sum of N37,625,642.59 in excess of 16 per cent per annum interest agreed upon by the parties.
Besides, it was alleged that contrary to the plaintiffs’ mandate to the bank not to sell their 28,745,400 units of Guaranty Trust Bank Plc(GTB) shares below the selling price of N15 per share, the bank negligently and unprofessionally sold the said units of shares at prices ranging between N8 and N9 on May 7, 2009.
It was posited that in view of the bank’s negligent action, the said shares were wrongly sold for a total sum of N260,876,903.21 instead of the targeted sum of N431,181,000, thus causing the plaintiffs to unjustifiably lose the sum of N170,304,096.79.
They contended that the bank knew that the intention to sell the shares was to raise a targeted sum of not less than N431,181,000 so as to offset the outstanding indebtedness of the plaintiffs to the bank.
It was said that as part of liquidating the outstanding sum of N709,782,914.62 loan facility, the plaintiff paid a total sum of N501,607,445.53 to the defendant bank through the 1st plaintiff’s Union Bank of Nigeria Cheque dated October 27, 2009, pointing out that the sum of N1,900,461.72 charged by the defendant in excess of the interest charges which is due to the plaintiffs was not deducted from the sum of the said N709,782,914.62.
The plaintiffs are claiming against Stanbic IBTC Bank Plc the sums of N5 billion and N2 billion as general damages for breach of contract and aggravated damages for loss of goodwill and business reputation respectively.
