by Legalnaija | Aug 23, 2020 | Uncategorized
Introduction
It
is common knowledge that the Nigerian Courts will not award a relief that was
not expressly claimed by a party at trial because the Courts are prevented from
doling out unsolicited gifts like Father Christmas.
However, it appears that many companies are unaware of an exception to this
rule, which exists in the rules of almost every High Court in Nigeria wherein
the Courts are permitted to award post judgment interest on every judgment sum,
even where same was not claimed by a successful litigant in his pleadings.
Post Judgment Interests in the Various Rules of
High Court
Every
Court of equipollent jurisdiction with the high court (Federal High Court,
State High Courts, National Industrial Court and the Investment and Securities
Tribunal) has a provision in its rules which recognizes the award of
post-judgment interests on judgment debts at the rate of not more than 10% per
annum. This interest shall immediately apply on every judgment debt and it is
immaterial whether the judge made no pronouncement on it or whether the
successful party did not claim for this relief.
In
the Federal High Court, Order 23 Rule 5
of the Federal High Court Civil Procedure Rules 2019 provides as follows:
“The Judge at
the time of making any judgment or order or at any time afterwards, may direct
the time within which the payment is to be made or other act is to be done,
reckoned from the date of the judgment or order or from some other point of
time, as the judge deems fit and may order interest at a rate not exceeding ten
per cent per annum to be paid upon any judgment.”
In
the High Court of Lagos State, Order
39 Rule 4 of the High Court of Lagos State (Civil Procedure) Rules 2019
similarly provides as follows:
“The Judge may at the time of making any
Judgment or Order or at any time afterwards, direct the time within which the
payment is to be
(a)
made or other act is to be done,
(b)
reckoned from the date of the Judgment or
Order, or some other date or time, as the Judge deems fit; and may order
interest at a rate not less than 10% per annum to be paid upon judgment.”
In
the High Court of the Federal Capital Territory, Abuja, Order 39 Rule 4 of the High Court of the Federal Capital Territory
(Civil Procedure) Rules 2018 also provides thus:
“The Court at
the time of making any judgment or order, or at any time afterwards, may direct
the time within which the payment is to be made or other act is to be done,
reckoned from the date of the judgment or order, or from some other point of
time, as the Court may deem fit and may order interest at a rate not less than
10% per annum to be paid upon any judgment.”
Similar provisions exists in the rules of the
various State High Courts in Nigeria. Please see Order 35 Rule 4 of the Akwa Ibom State High Court (Civil Procedure)
Rules, 2009 and Order 35 Rule 4 of
the Ogun State High Court (Civil Procedure) Rules, 2014 for instance.
In the National Industrial Court, Order 47 Rule 7 of the National Industrial
Court of Nigeria (Civil Procedure) Rules 2017 contains a similar provision
thus:
“The Court
may at the time of delivering the judgment or making the order give direction
as to the period within which payment is to be made or other act is to be
performed and may order interest at a rate not less than 10% per annum to be
paid upon any judgment.”
In
the Investments and Securities Tribunal, Order
7 Rule 7 of the Investments and Securities Tribunal (Procedure) Rules 2014
also contains a more detailed provision thus:
“When a
decision awards a party a monetary sum (other than in respect of costs and
expenses), the award shall, unless set aside, and subject to any variation on
appeal or review, carry interest at the commercial rate from the date of the
event giving rise to the application to the Tribunal and or at the rate of ten
percent from the date of the decision. The interest may be recovered in the
same manner as the award to which it relates.”
Rationale Behind the Award of Post-Judgment
Interests
Post
Judgment interests on a judgment sum are awarded to a successful litigant to
encourage judgment debtors pay off the judgment debt as soon as possible. Our
legal system also acknowledges the inordinate length of time it takes for
appeals to be heard. An appeal may take as long as ten years to be concluded at
the Apex Court, such that a monetary award of the trial Court may have lost its
worth by the time the Supreme Court affirms the judgment of the trial Court.
Hence, the rules of every trial/High Court empowers the Courts to award
post-judgment interest on every judgment debt at the rate of not less than 10%
per annum.
Interestingly,
every judgment of the trial/High Court actually carries post-judgment interests
at the rate of 10% p.a. Hence, even where the trial Court is silent on the
issue of post-judgment interest, the apposite rules of that Court automatically
imputes interest at the rate of 10% per annum on the judgment sum.
The
Supreme Court of Nigeria has explained the rationale behind the compulsory
award of post-judgment interests in the case of Berliet (Nig.) Ltd. v. Kachalla
(1995) 9 NWLR (Pt.420) 478 when the Noble Lord Ogundare JSC held with
exquisite erudition as follows:
“The
principle behind the rule seems to me to be to provide incentive to judgment
debtors for the speedy payment of judgment-debts and to ensure that judgment
creditors do not suffer much detriment as a result of a delay in the settlement
of judgment debts. The wording of the rule clearly shows that the judgment
automatically carries interest at 10 per centum per annum until it is
satisfied. The rule however, gives the court a discretion to order otherwise.
In my respectful view, this discretion is a veto which the trial court may
exercise to direct that no interest be paid on a judgment debt, or to order
that a lesser interest be paid. Where he does not give any direction or where
the judgment is silent as to payment of interest on the judgment debt, the
judgment debt automatically carries interest at the rate fixed by the rule,
that is, 10 per centum per annum from the date of the judgment.”
Interpretation of this Rule by the Courts
Undoubtedly,
statutes and rules of Court are to be given their literal and unambiguous
meanings where the wordings of the legislature are clear and precise. However,
the Court may invoke the golden and/or mischief rule of interpretation where
the religious application of the literal rule will amount to manifest
absurdity.
A
prima facie observation of the
various rules of Court on the award of post-judgment interest would reveal that
the rules appears to give the judges the discretion to choose to order the
award of post-judgment interests or not. Some recalcitrant Judgment Debtors
have contumaciously held on to the literal construct of these rules to avoid
paying post-judgment interests where same was not expressly awarded by the
Courts. Some have argued that the use of the verb “may” in these rules evinces
the intention of the draftspersons of the rules NOT to connote mandatoriness,
and that it rather it confers a discretion on High Court judges to choose to
award the post-judgment interest or to refrain from doing so.
This
argument has been rejected by the Apex Court on a number of occasions,
including the locus classicus case of
G.K.F Investment
Nigeria Limited v Nigeria Telecommunications PLC (2009) 15 NWLR (Pt. 1164) 344
SC where
the Apex Court laid this vexed issue of the interpretation of the rules of Court
on post-judgment interests to a definite rest while interpreting the provisions
of Order 38 Rule 7 of the Lagos State
High Court (Civil Procedure) Rules 1994 which has now metamorphosed
into Order 39 Rule 4 of the High court
of Lagos State (Civil Procedure) Rules 2019 as follows:
“In the instant case where the
rules of court have provided for the recovery of interest on a judgment sum,
the entitlement is automatic unless otherwise ordered by the court. Since the
lower court had neither ordered the payment of interest to the Appellant nor
given a direction to the contrary, the sum of N200,000.00 awarded to the
Appellant automatically carries interest at the rate of 7 1/2% fixed by Order
38 Rule 7 of the Lagos State High Court (Civil Procedure) rules 1994 as
amended.”
Similarly,
in the case of Berliet (Nig.) Ltd. v. Kachalla (1995) 9 NWLR (Pt.420)478, the
Apex Court while interpreting the provisions of Order 27 Rule 8 of the High
Court (Civil Procedure) Rules 1976 of Kano State had earlier held with
unambiguous clarity as follows:
“It is not
difficult to resolve the main issue in this appeal which is the construction to
be placed on Order 27 rule 8 of the High Court (Civil Procedure) Rules 1976, of
Kano State. The rule is very clear
and unambiguous. Unless the court otherwise orders: a judgment debt carries 10
per centum per annum interest from the date of judgment until it is liquidated
by the judgment-debtor.”(emphasis mine).
The
Court of Appeal in absolute fealty to the inveterate doctrine of stare decisis has also followed the
illustrious reasoning of the Apex Court above in the case of Uli
Microfinance Bank Nigeria Limited v. Agbanu Norbert (2018) LPELR-44953(CA) when
the jurisdiction of the appellate Court was activated to interpret the
provisions of Order 35 Rule 4 of the
Anambra State High Court (Civil Procedure) Rules, 2006 which also deals
with the automatic application of post-judgment interests on judgment debts.
The Court held thus:
“There
is no doubt from the record that the claim for interests on the amount due to
the Claimant/Judgment Creditor was rightly awarded in the circumstances. By
Order 35 Rule 4 of the Anambra State High Court Civil Procedure Rules, 2006,
“not less than 10% per annum to be paid upon any judgment” can be
awarded notwithstanding that the time for the payment of interest or the
interest rate were not pleaded or proved at the trial. The principle of awarding post judgment interest on a liquidated
judgment sum has been accepted as an exception that no person is entitled to
any remedy or relief not claimed.” (emphasis mine).
Pragmatic Circumnavigation of the Murky Waters of
Post-Judgment Interests
As
earlier stated, many Judgment Debtors (especially companies) are in the habit
of sulking and raising frivolous objections when a victorious Judgment Creditor
demands for the payment of the outstanding post-judgment interests on a
judgment debt after the forensic dispute between the parties has been finally
settled by the Apex Court. It is only after losing out on appeals that some Judgment
Debtors discover that the compounding post-judgment interests will have doubled
the value of the judgment debt.
The
safest way to escape the financial agony which is sure to accompany the demand
for the payment of outstanding judgment debt and post-judgment interests is to
place the value of the judgment debt in a high interest yielding account before
filing a notice of appeal against the decision of the trial Court. This will
provide a safe fall-back cushion in the event that the Judgment Debtor loses on
appeal as the judgment debt would have generated sufficient interests to
satisfy the post-judgment interest when the Judgment Creditor eventually comes
knocking for his outstanding judgment debt and interests thereon.
Conclusion
It
is certain that as night follows the day, post-judgment interests at the rate
of 10% per annum shall apply to every monetary judgment debt of the High
Courts, except where the Court expressly declares otherwise.
It
will therefore be futile for any Judgment Debtor to attempt to escape the
payment of post-judgment interests on monetary judgment debts of trial Courts.
Any objection to the compulsory application of post-judgment interests would be
treated as a moot point which may only succeed in irking the Courts further and
result in the imposition of costs while the outstanding interests shall still
continue to run.
Nonso
Anyasi is a Dispute Resolution and Data Privacy Attorney based in Lagos and can
be reached via nonsoanyasi@gmail.com.
by Legalnaija | Aug 23, 2020 | Uncategorized
As we prepare for another
exciting Annual General Conference, we
can’t help but think back to the amazing time we had at the 2019 NBAAGC which
held in Lagos. We have therefore put together 6 interesting quotes from
speakers at the Conference. Find them below –
We don’t look at anybody’s
face before taking our decisions.
– – Hon. Justice Tanko Muhammad, Chief Justice of
Nigeria.
Social Media has boundless
opportunities for lawyers and law firms, but it depends on how you use it.
– – Adedunmade Onibokun
I commend you all for organizing
this conference over the years in a manner that has brought our country
positive global respect.
– –
President Muhammadu Buhari GCON
We should not toil with the
independence of the Judiciary.
– – Mike Ozekhome SAN
We must address the problem
of judicial timidity.
– – Mallam Yusuf Ali SAN
The Conference affords us
the opportunity to review how we operate.
– – Paul Usoro SAN (NBA President)
If you have a favourite
quote from the 2019 Annual General Conference; do share.
@Legalnaija
by Legalnaija | Aug 23, 2020 | Uncategorized
The NBA Annual General
Conference kicks off in 3 days and we are so excited about it. According to Mr.
Kunle Edun, the NBA Publicity Secretary, over 15,000 lawyers have registered
for the conference, a number significantly higher than the 2019 conference.
As we get ready for the
conference, here are 3 things you can do in anticipation.
1.
Look
through the list of speakers
Visit
the NBA Conference Website and scroll through the list of speakers, you will
definitely find a number of speakers who spark your interest and whom you will
like to listen to. Some include Former President, Chief Olusegun Obasanjo GCON;
the Speaker of the House of Representatives, Rt. Hon. Femi Gbajabiamila; Hon. Justice Tanko Muhammad, Chief Justice of
Nigeria; Governor Nyesom Wike, Governor of Rivers State; Lord Angus Glennie, QC,
Of the Privy Council & Judge Of the Appellate Court of Scotland and Steven
Richman, Former Chair, American Bar Association Section of International
Law, just to mention a few. You can find the list of speakers here.
2. Check
out the Sessions
The NBA Conference website lists some of the
sessions scheduled to hold at the Annual General Conference, some of these
include the sessions on the State of the Nation; Of Layoffs, Furloughs and
Redundancy, a discussion on recent developments on labour and employment issues
in light of the impact of the COVID-19 pandemic, and A Dialogue on Insolvency
and Economic Recovery. You can find the list of sessions here on the NBAAGC Forum.
3. Network
and Engage on the NBA Forums
The NBAAGC Website showcases forums for each of the
sessions where lawyers can network and engage. The Forum allows you connect
with many of the 15,000 delegates who have registered form various parts of the
world and diverse practice areas. The Forums are also platforms to meet up with
old friends and buddies. You can join some of the forums here.
So
what are you waiting for? If you are yet to register, log on to the NBA Website
here https://conference.nigerianbar.org.ng/
@Legalnaija
Image Source: NBA Website
by Legalnaija | Aug 17, 2020 | Uncategorized
With the NBA Annual General
Conference just 8 days away, we are super excited about this year’s conference
for various reasons and we want you to know 4 things you can look forward to at
the upcoming conference.
1.
AWESOME
DISCUSSIONS
One
of the hallmarks of the NBA Annual General Conference are the panel session
discussions and speeches from world renowned leaders. For instance one of the
Keynote Speakers at this year’s AGC is Hon. Dame Linda Dobbs, the Director of Training at the
Judicial Institute for Africa; Pro Chancellor of the University of Surrey; read
more about her here.
Other
speakers, participants can look forward to engaging with at the conference
include; Prof. Yemi Osibajo SAN, GCON, Rt. Hon Femi Gbajabiamila, Governor
Nyesom Wike, Chief Olusegun Obasanjo and Brian Speers, President of the Common
Wealth of Lawyers Association. You can see the full list of Speakers here.
2.
BONDING
AND NETWORKING
Over
past conferences, lawyers are used to meeting up in person to network and bond.
Despite the pandemic, lawyers will still have the opportunity to network and
bond at the upcoming conference.
3.
ENGAGING
NEW IDEAS
With
the new normal like we all like to call it, businesses have been forced to
think outside the box to provide engaging new ideas which ensure their
businesses thrive. At the 60th NBA Conference, we are going to be
engaging with new ideas as well.
4.
A LOOK
AT THE FUTURE
Like
earlier mentioned, due to the pandemic we are forced to think outside the box
and the Nigerian legal profession must also discover new ways of preparing for
what the future brings. Most especially, how do we as lawyers prepare ourselves
for this future?
These and more are going to
be discussed at the NBAAGC 2020 and we recommend you do not miss it for the
world. To register, simply log on www.conference.nigerianbar.org.ng
and click on the Registration button.
The website also has information on some of the special features of the
conference.
by Legalnaija | Aug 17, 2020 | Uncategorized
If your answer to the above
question is “you don’t know” or “you are not sure”, then you are truly on a
long thing and like we lawyers usually say “you are sleeping on your rights”. On
the 26th – 29th of August, 2020, the largest gathering of
lawyers in Africa, will be getting together for the NBA Annual General Conference.
There is really no excuse
not to be part of the NBAAGC 60th Anniversary. Can you believe the
NBAAGC is 60 years. WOW, that comes with so much history to it and guess what?,
the conference is free. One more special thing is that the Conference is
absolutely free.
To register, simply log on www.conference.nigerianbar.org.ng
and click on the Registration button.
The website also has information on some of the special features of the
conference.
So now that you know what
you will be doing on the 26th – 29th of August, 2020. What
are you waiting for? REGISTER NOW, the conference is just 8 days to go.
by Legalnaija | Aug 17, 2020 | Uncategorized
According to the publication, Nigerian Justice System: The Ideal, Hope And Reality by M. Shehu, Dr. M. Faud Bin Othman and Dr. N Binti Osman published in 2017, the “Justice system and its administration in every state is the reflection of that state’s extent of civilisation, the dispensation of justice and development. The administrators and operators of the Nigerian justice system are collectively and separately responsible for most of the problems facing the Nigerian justice system.
What we need includes a complete overhaul of the prisons to reflect changing realities, curbing corruption in the entire justice system, strengthening the constitutional provisions and procedural enforcement of fundamental rights, extensive and adequate civic education, strengthening the works of civil societies organisations, timely and efficient dispensation of justice in the courts, ensuring full independence of the judiciary and creation of conducive atmosphere for legal aid providers among others.”
This topic and more will be discussed at the WOC Justice Summit holding on Saturday, 22nd August, 2020, with the theme; “Developing An Institutional Concept of Justice in Nigeria”. Special Guests at the event include His Excellency, the Vice – President of Nigeria, Prof. Yemi Osibajo GCON, SAN; Prof. Fidelis Oditah QC, SAN; Yemi Candice – Johnson SAN; Boma Alabi; Prof. Pat Utomi and Brie Stevens-Hoare (Professional Commissioner Judicial Appointments Commission UK).
The event will be moderated by Bode Olanipekun SAN, Managing Partner, Wole Olanipekun and Co.
Register for the event immediately via this link https://bit.ly/3aazQnS and stream live on Youtube via this link http://bit.ly/Youtubewocjusticesummit
Join the conversation and let’s be part of the solution together.
by Legalnaija | Aug 14, 2020 | Uncategorized
At the recent Justice Research Institute (JRI) Virtual Roundtable themed “Selection and Appointment of Judges: Lessons for Nigeria”, His Excellency, Vice – President Yemi Osibajo GCON, SAN, mentioned that there is need for an urgent, honest and frank conversation about judicial reforms.
The Vice President’s statement cannot be over-emphasized as the Nigerian Judiciary is in dire need of reforms. Currently, citizens and users of the justice system are most unhappy about the state of affairs and have begun to result to other available means to remedy the breach of their rights. It is not so uncommon to see citizens approach the police to resolve commercial disputes or for debt recovery. One cannot in turn blame the citizen since the court system is overly slow and unable to meet the expectation of the citizenry.
This topic and how to fashion a working justice delivery system will be discussed at the WOC Justice Summit holding on Saturday, 22nd August, 2020. Special Guests at the event include His Excellency, the Vice – President of Nigeria, Prof. Yemi Osibajo GCON, SAN; Prof. Fidelis Oditah QC, SAN; Yemi Candice – Johnson SAN; Boma Alabi; Prof. Pat Utomi and Brie Stevens – Hoare, QC. The event will be moderated by Bode Olanipekun SAN, Managing Partner, Wole Olanipekun and Co.
Register for the event immediately via this link https://bit.ly/3aazQnS and stream live on Youtube via this link http://bit.ly/Youtubewocjusticesummit
Let’s build a judicial system that works for all.
by Legalnaija | Aug 13, 2020 | Uncategorized
The newly inaugurated Managing Director of the Federal Housing Authority, Senator Gbenga Ashafa, today set the tone for his tenure in an introductory meeting with the Management and Staff of the Corporation at their head office in Asokoro, Abuja.
Addressing the staff after a familiarization tour of the offices and facilities at the Head Quarters of the agency, Senator Ashafa expressed his readiness to take on this new responsibility with vigor stating that “let me assure you all that myself as your Managing Director together with The Executive Director Business Development, Hon. Abdulmumin Jibrin and the Executive Director, Housing Finance Mr. Maurice Ekpeyong are here to work. All we ask of you is to get ready for us to work as a team in order to make the Federal Housing Authority work for all Nigerians.”
Soon after, Ashafa was briefed by the immediate past Acting Managing Director on the activities of the Agency after which he officially handed over to the new management team.
Speaking further, Ashafa urged the members of staff to rededicate themselves towards achieving the mandates of the Federal Housing Authority. The new MD stated that “I urge you all to rededicate yourselves to the monumental task ahead knowing fully well that President Muhamadu Buhari will be counting on us to deliver and so will millions of Nigerians across the Country. Need I say that expectations are high and so must our morale be across board.”
The Executive Director’s Business Development, as well as Housing Finance, also reiterated the message of the Managing Director to the Management and urged the staff to put in their best for the benefit of Nigerians.
The Management and staff of the Agency in return assured the incoming management of their readiness to work as a team and to help the new management succeed.
by Legalnaija | Aug 12, 2020 | Uncategorized
In the words of James Baldwin, “If one really wishes to know how justice is administered in a country, one does not question the policemen, the lawyers, the judges, or the protected members of the middle class. One goes to the unprotected–those, precisely, who need the law’s protection most!–and listens to their testimony.”
In Nigeria particularly, with multiple setbacks and inadequacies plaguing the Nigerian Justice System, there has become a growing need for a panacea. This is made more pressing by the clogs experienced by varying degrees of COVID – 19 lockdown and post – pandemic uncertainties that are sure to come.
On Saturday, 22nd August, 2020, key stakeholders in the Justice Sector will be meeting to discuss “Developing An Institutional Concept of Justice in Nigeria”. Attending this event is crucial to stakeholders in the justice sector who want a turn – around in the Nigerian Justice system.
Special Guests at the event include His Excellency, the Vice – President of Nigeria, Prof. Yemi Osibajo GCON, SAN; Prof. Fidelis Oditah QC, SAN; Yemi Candice – Johnson SAN; Boma Alabi; Prof. Pat Utomi and Brie Stevens – Hoare, QC. The event will be moderated by Bode Olanipekun SAN, Managing Partner, Wole Olanipekun and Co.
Register for the event immediately via this Zoom link https://bit.ly/3aazQnS and stream live on Youtube via this link http://bit.ly/Youtubewocjusticesummit.
Looking forward to engaging with you at the event.
