Ecobank heads for Appeal Court in legal battle with Honeywell Flour Mills over damages

Ecobank Nigeria Limited has filed a Notice of Appeal challenging the recent decision of a Federal High Court in Lagos, which dismissed a preliminary Objection filed by the bank, in a suit with Honeywell Flour Mills Plc, over a winding up Petition.

Ecobank and Honeywell have been in a running battle since 2015 over a winding up Petition.

In November 2015 after Ecobank obtained the ex-parte orders from the Federal High Court, Honeywell was later, able to regain access to its assets in 2016, after the Court of Appeal had upturned the interim orders of the lower court.

In 2018, Honeywell then filed a suit against Ecobank, seeking damages in the excess of N72 billion, over the bank’s decision to freeze its assets.

Also in 2018, the Supreme Court ultimately upheld the Court of Appeal's ruling after it was approached by the appellant to upturn the decision and return full access to Honeywell Flour Mills.

Honeywell had subsequently, instituted a suit at the Federal High Court Lagos, seeking to claim damages for the loss it suffered following appellants winding up move

On its part, Ecobank filed a preliminary objection, dated Oct. 16, 2018, challenging the courts jurisdiction to entertain the action by the respondent.

On Tuesday July 18, Justice Mohammed Liman of the Federal High Court Lagos, dismissed the preliminary Objection by Ecobank, challenging the courts jurisdiction to entertain Honeywell's suit for damages it allegedly suffered by virtue of the appellants winding up action in suit number Fhc/CP/1689/2015, plus the bank's undertaking to indemnify the respondents if its exparte order is deemed to be frivolous or a sham

The court had upheld honeywell's cause of action for damages, on the sole ground that it bordered on banker-customer relationship on which both the federal and State High courts had concurrent jurisdiction.

Dissatisfied, Ecobank in its Notice of Appeal avers that the learned trial judge erred in law when it assumed jurisdiction on that sole ground.

The appellant avers that the subject matter of the respondent's claim is not recognized under the provisions of section 251 of the 1999 constitution which codifies the nature of cause of action vested in the federal High court.

The appellant further avers that the institution of the instant action solely to enforce the undertaking given by the appellant, is abusive of the appellant's pending action in suit Fhc/L/CP/1689/2015.

Besides, Ecobank argues that the only avenue the respondent ought to have invoked the undertaking issued by it, is in the action filed by the bank in Fhc/L/CP/1689/2015.

Exobak further avers that the trial court erred when it held that any action instituted by a customer against a bank, falls within the jurisdiction of the Federal High Court irrespective of the subject matter of the suit and consequently dismissed the appellants notice of preliminary objection.

A hearing date is yet to fixed by the appellate court.