Barely a week after the Federal High Court sitting in Lagos ruled that top financial institution, Ecobank, was liable to pay flour milling company, Honeywell Flour Mills, a sum of N72.2 billion as damages in a protracted legal battle, Nigerians have urged the bank to caution its legal counsel over what they termed as excessive and unprofessional conduct.
The landmark judgement, which was delivered by Hon. Justice Mohammed Liman on July 18, marks the culmination of an intense legal battle that has spanned eight years between Ecobank and Honeywell Flour Mills. The court found Ecobank responsible for the financial losses suffered by Honeywell Flour Mills and ordered the bank to pay the substantial amount in damages.
The case, which had gripped the nation’s attention for nearly a decade due to its high-stakes and complex nature, revolved around allegations of corporate misconduct. Honeywell Flour Mills claimed that Ecobank failed to honour the contractual obligations in its procurement of ex-parte orders to freeze the flour milling company’s assets in 2015, leading to significant financial setbacks and losses for the company.
Justice Liman’s judgement in favour of Honeywell Flour Mills had been lauded by many legal and business experts who observed the proceedings as a victory for corporate accountability and justice, while others believe the bank was dealt a cruel blow. However, the focus has now shifted to Ecobank’s lead counsel, Kunle Ogunba (SAN), who has come under scrutiny for his team’s conduct during the lengthy legal proceedings.
During the pronouncement of his judgement, Justice Liman had criticised the bank’s legal advisors for their handling of Honeywell Flour Mills’ demands for damages. He highlighted Ecobank’s earlier commitment, evident in a signed undertaking that accompanied its request for ex-parte orders to freeze the flour milling company’s assets, to comply with such demands in case the action was found to be frivolous and unjust by law. Emphasising the significance of adhering to the explicit provisions of the winding-up rules, the judge firmly stated, “The defendant cannot claim ignorance of this provision as ignorance of the law is no excuse, and it is even more inexcusable if committed by a lawyer. Therefore, the ex-parte application was made ultra vires.”
Following the ruling, the bank expressed its intent to vigorously challenge the judgment, remaining “confident that it can reverse this judgment at the higher courts.”
Nigerians, reacting to news of the court’s judgement, have taken to social media and public forums to express their disapproval and advise that Ecobank’s legal representatives apply caution to avoid exacerbating the issue. Calls for accountability and professionalism within the legal profession have gained momentum as citizens stress the need for ethical standards to be upheld, particularly in cases of such national importance.
Public commentator Tokunbo Oshisanya commented on Twitter, expressing his agreement with the judge’s rebuke of the bank’s actions over the years. He said, “See how he lashed them, but then who would blame him? A case that has been on since 2015, so Honeywell paid 3.5 billion in debt, Ecobank said ‘no you can’t go like that, your money has increased to 13.5 billion’. Now, just look at what is happening.”
Another Twitter user, Adaeze, believes that the judgement was a consequence of the bank’s legal team’s refusal to settle the matter amicably with Honeywell Flour Mills over the past eight years. “Knowing when to stop is a gift,” she said.
Also querying the legal advice received by Ecobank in its freezing of the Honeywell Flour Mills assets in an analysis of the legal issues was legal practitioner and analyst, Ikemesit Effiong. Effiong, while expressing his surprise that the bank sought a court order to shut down a business without its owners’ knowledge, noted that Ecobank’s decision and the conduct of its lead counsel Kunle Ogunba (SAN) in the case, partly contributed to a disciplinary action taken by the Legal Practitioners Disciplinary Committee. Ogunba had been initially stripped of his rank of Senior Advocate of Nigeria (SAN) by the committee in 2018, before a review of the matter led to the restoration of the honour later on in the year.
As the aftermath of the judgment continues to unfold, Nigerians and legal observers alike are closely monitoring Ecobank’s response and the actions taken to address the concerns surrounding its legal representation. The implications of this significant ruling on corporate accountability and legal ethics in Nigeria are far-reaching, making it a critical moment in the country’s legal landscape.