Court directs parties to explore amicable settlement in suit against IoD

High Court

A Lagos High Court, Tafawa Balewa Square (TBS) has directed parties in the N128 million suit filed against the Institute of Directors Nigeria (IoD) over alleged non-payment of debt, to explore out of court settlement and report back to court on April 3, 2017.

The claimants in the suit are Promaco Associates Ltd, Interstates Architects Ltd, Morgan Omonitan & Abe Ltd, Kunle Ogunbayo & Associates Ltd and Consol Associates Ltd. In the action before Justice S.I. Sonaike, the claimants asserted that the defendant appointed them severally as Project Managers, Consultant Architects, Structural Engineers, Mechanical Engineers and Quantity Surveyors respectively for the design and development of its new secretariat and office building.

The claimants averred that pursuant to the terms of their respective appointments, the 2nd claimant, commenced and completed the drawing of the new secretariat office complex, likewise the 3rd and 4th claimants, prepared detailed structural and service drawings based on the agreed architectural design.

The claimants also maintained that the 5th claimant, upon completion of the 2nd, 3rd and 4th claimants’ drawings, proceeded to make a detailed elemental cost estimates for the development of the new secretariat and office building of the defendant.

Consequently, the claimants are seeking an order for the defendants to make immediate payment of the sum of N127, 575, 322, being their duly earned entitlement in the various and numerous services rendered at the Pre contract stage of the development of IoD’s new Secretariat and office Building.

It further seeks the sum of N1, 000, 000 being the cost of the suit, interest at the rate of 21 per cent per month on the outstanding sum due and owing from the 4th of October, 2016 till judgment is delivered, interest on the adjudged sum at the rate of 10 per cent per annum from the date of judgment till judgment debt is satisfied.

In response, the defendant stated that while the claimants were in the middle of carrying out their various professional tasks for which no final report or drawing had been submitted or approved by the defendant, an offer arrived from Transcorp Hotels Plc, which indeed ‘upturned’ the work so far done at that state by the claimants.

“The defendant avers that the claimants claim are unmeritorous, premature and should therefore be dismissed with substantial cost awarded in favour of the defendant,” IoD prayed.

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