School Moves for Out of Court Settlement in N90m Suit

A N90million lawsuit by Diamond Bank plc against Sunshine De Golden Nursery and Primary school Ibadan  has been adjourned for settlement.

At the hearing, the trial judge, Justice Sule  informed by counsel to the school, Mr. Akeem Agbaje that his client was favourably disposed to settling the case out of court and undertook to do all within his powers to ensure that an amicable resolution of the case was achieved. 

The school had initially sued the bank to prevent closure on the mortgage of a property used as collateral in 2013 due to failure on repayment of a loan. The loan was secured in 2012 to expand the school through its proprietor, Mrs. Taiwo Arowobusoye upon endorsement of the loan by the school board according to the bank’s lawyer, Ayo Faleti.

Agbaje said his client issued a cheque of N10 milliona on Friday, 9th of December 2016 valid for 31st of December 2016 to the counter the claim of Diamond Bank Plc. 

The defendant promised to issue another cheque of N10 million in December, 2016 valid for 20th February 2017 to the bank. He further stated that his client was offering an outright payment of N90 million at a later date to be agreed by both parties.

The counsel for Diamond bank, Mr. Faleti confirmed the receipt of a N10 million cheque which was brought to court for sighting. He stated that function of the court was for peaceful resolutions and his client would not oppose the request for an amicable settlement. He prayed the court to take note of the defendants pledge to honor its payments as the case had been ongoing for two years, a period during which the defendant had shown no credible commitment to offsetting its debt to his clients.

The case was adjourned on the request of both parties who agreed to meet and try to settle matters amicably. In adjourning the case, Justice Sule asked that both parties be present in court on the February 6, 2017 for report of settlement and definite hearing.