Appeal Court urged to reject Union Bank’s bid to suspend ‘N13 billion’ Ikoyi property judgment 

The Court of Appeal in Lagos has been urged to reject Union Bank Plc’s request to suspend a High Court judgment concerning the bank’s “wrongful” sale of a family’s property located at No. 6, Moore Road, Ikoyi, Lagos State, which was sold at a grossly undervalued price of N60 million.

The legal team representing Mrs. Olubunmi Ogunde, Yewande Ogunde, and others submitted a counter affidavit to the Appeal Court, dated November 7, 2024.

They argued that the property in dispute would now allegedly be worth N13 billion if pre-judgment and pro-rated post-judgment interest were calculated over the relevant years.

The disputed judgment on appeal involves a loan and mortgage matter (initially commenced in 1999 but amended by the claimants in 2017).

Facts of the case 

• Nairametrics previously reported that, on May 31, 2024, the High Court ruled that both the sale of Plot 6A and the sale of Plots 6B, 6C, and 6D by the bank were grossly undervalued.
• The verdict relied on market research surveys related to similar properties or locations at that time, according to exhibits reviewed by the court.
• The judge also stated that evidence showed the mortgagor had not been given access to his account, preventing the proper purchase price from being known at the relevant time. The court found that selling the property at such a low price was evidence of fraud.
• Agreeing with the claimants, the judge declared that the sale of the property in Ikoyi by the bank was conducted in bad faith and at a grossly undervalued price.

“The court awards the sum of N112,050,000.00, excluding the N60,000,000.00 (Sixty Million Naira) already paid, being the difference in what should have been realized from the sale of the property known as No. 6 Moore Road, Ikoyi, Lagos, and interest on the said balance from 1998 until today (the date of judgment) at the prevailing CBN rate, and thereafter from the date of judgment until the judgment debt is fully liquidated at the rate of 10% per annum,”  the judge had stated.

Bank appeals Trial Court Judgment 

• Disagreeing with the High Court judgment, the bank’s lawyer, Funke Agbor SAN, requested the High Court to stay the execution of the judgment pending the determination of the bank’s appeal.
• In its notice of appeal, seen by Nairametrics, the bank asked the appellate court in Lagos to quash the judgment, citing grounds related to fair hearing, improper evaluation, and miscarriage of justice.
• The bank argued that the trial court erred in law by holding that the sale of the mortgaged property was at a gross undervalue and by awarding monetary damages in favour of the respondents.

“The evidence the lower court relied on does not support the family’s claims regarding their perceived value of the property at the time of sale, as the prices of similar properties in the same vicinity (some on High Street) justify the reasonableness of the price at which the subject property was sold by Union Bank,” the bank submitted.

Opposition to the bank’s request for a stay 

Opposing the bank’s request for a stay, Omotola Oni, a Litigation Executive at Olaniwun Ajayi Chambers, told the Appeal Court that the bank, despite the lower court’s order, continues to refuse to provide the respondents with the bank account statements of the estate, as previously noted by the High Court.

He argued that it would be unconscionable to grant a stay of execution, as the family is entitled to the immediate benefit of their judgment.

“It is only fair that the Applicant(Union Bank) pays the judgment sum into an interest-yielding account, with interest computed on a compound interest basis, in any commercial bank other than the Applicant,” he stated.

• He further contended that while the lower court awarded the judgment sum as NGN52,050,000 (after deducting N60 million from over N112 million), as of November 2024, the total pre-judgment interest due on the judgment sum, calculated in accordance with the applicable CBN rate since 1999 and on a compound interest basis, is “N 12,547,686,231.27, while the pro-rated post-judgment interest (at 10% per annum) is N417,333,333.00.”
• He urged the Appeal Court to find that if the bank’s application is granted and the execution of the judgment is stayed, the respondents’ interests would be severely prejudiced.
• Nairametrics reports that the High Court’s verdict is now before the Court of Appeal for further interpretation of relevant laws and determination.