The Federal High Court
in Lagos has made an order of mareva injunction stopping Shoprite Checkers
(PTY) Limited from disposing of or transferring its assets out of jurisdiction
over a $10m judgment debt.
Shoprite has
announced its plan to exit Nigeria.
The mareva injunction made by Justice Mohammed Liman was in
favour of a Nigerian firm, A.I.C. Limited, which in 2018, secured a $10m
judgment against Shoprite in a breach of contract lawsuit.
According to court papers, the $10m judgment was entered in
favour of A.I.C. Limited against Shoprite by Justice Lateef Lawal-Akapo of the
Lagos State High Court in Ikeja.
Displeased with the judgment, Shoprite went on
appeal but it equally lost at the Court of Appeal and has gone to the Supreme
Court.
In the July 14, 2020 mareva injunction, a copy of which was
obtained by our correspondent, Justice Liman restrained “the judgment
debtor/1st respondent,” and its privies “from transferring, assigning,
charging, disposing of its trademark, franchise and intellectual property in a
manner that will alter, dissipate or remove these non-cash assets and other
assets, including but not limited to trade receivables, trade payables, payment
for purchase of merchandise, from within the jurisdiction of this honourable
court.”
The judge also mandated the 2nd respondent, Retail Supermarket
Nigeria Limited, “to disclose its audited financial statements for the years
ending 2018 and 2019 to enable the judgment creditor/applicant determine the
judgment debtor’s/respondent’s funds in its custody in order to preserve same
in satisfaction of the judgment of the Court of Appeal in Appeal No:
CA/L/288/2018.”
A.I.C. Limited had in
2012 sued Shoprite Checkers (PTY) Limited; and Retail Supermarket Nigeria
Limited for alleged breach of contract.
The Nigerian firm said it was the one, who invited the South
African retail supermarket operators to Nigeria and opened their eyes to
business opportunities in the country, with a view that they would go into a
joint venture.
The Nigerian firm, however, said after talks had reached an
advanced stage and it had incorporated A.I.C.-Shoprite Nigeria Ltd. in the hope
of a joint venture for establishment, Shoprite abandoned the agreement and went
behind its back to set up its outfit in 2005.
Though Shoprite
contended that it had no contract with the Nigerian firm, both the high court
and the Court of Appeal said the series of exchanged correspondences between
the parties confirmed that A.I.C Limited and Shoprite agreed to a joint
venture.
Upholding the high court judgment, the Court of Appeal held,
“There is evidence in the record that the 1st appellant allowed the respondent
to search for a suitable site for the partnership project and to apply for a
lease of land for the partnership project. These involved time, energy and
money. The court below held that the conduct of the parties demonstrated
intention to enter into a legal relation in respect of the partnership project.
I agree.”
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