Alleged $4.6m Debt: When Police Act As Recovery Agency in Civil Dispute

Wale Igbintade

Despite the clear stand of the law and judgements of superior courts that the Nigerian police has no business in adjudicating on business disputes, or recovering of civil debts, the police still consistently interfere in civil cases.

Police involvement in recovering a claim in a civil dispute is again revealed in a criminal charge filed against the Chairman Chief Executive Officer of Lionstone Offshore Services Limited, Mr. Amaechi Ndili, his wife Njide, and their company, Lionstone.

They were charged before the Lagos Special Offences Court, Ikeja over a civil business dispute between their company, Lionstone Offshore Services Limited, and Hercules Offshore Nigeria Limited.

According to the police the defendants were alleged to have fraudulently converted the sum of $4.6 million said to belong to Hercules Offshore Nigeria Limited to their personal use.

However, despite the clear stand of the law and judgements of superior courts that the Nigerian police has no business in adjudicating business disputes, the police still consistently interfere in civil cases.

The dispute arose from a joint business agreement signed by Lionstone, and the American company, Hercules Offshore Nigeria Limited to work together on the tender of a specific contract in the oil sector as a servicing that could be won from a major Oil Company.

Lionstone with the assistance of Hercules bid on this contract, which they did not eventually win. Under the Memorandum of understanding, MOU, parties agreed that all disputes that may arise in the course of the contract implementation and interpretation under the MOU must be submitted to the Arbitration Tribunal in London.

Unfortunately, as mentioned earlier, the parties were unable to win the contract, which they envisaged and bid for with ADDAX Petroleum under the MOU.

Prior to the contract submission date, and certainly well before the tenders closed, Lionstone (being an indigenous company) was solely awarded an interim contract by Addax in October 2010. Due to the nature of their pre-existing relationship, Lionstone agreed to and worked together with Hercules Offshore on this interim contract, which arose before the main tendered contract.

This interim contract made no mention of Hercules at all and was dated October 2010, while the Hercules/Lionstone MOU and its amendments were dated Dec 2011, he stated.

However, under the new deal, and as a result of the potential strategic nature of their relationship, both parties agreed to share the proceeds from the interim contract solely awarded to Lionstone by Addax.

However, while the business was going on, Lionstone alleged breach of contract and good faith on the side of Hercules and insisted that Hercules remedy its breach.

The disagreement led both parties to submit themselves before the Arbitration Tribunal in London as contained in their MOU and at the end of its sitting, the Tribunal made its findings and granted the award to Hercules.

In a bid to enforce the arbitral award, Hercules approached the Federal High Court, Lagos in suit number FHC/L/CS/1461/2017, and the matter is currently before the Court of Appeal in appeal number CA/LAG/CV/344/2019.

Lionstone denied the claim insisting that Hercules and Lionstone were not in a partnership or agency relationship and that Hercules was indeed in breach of local content laws in Nigeria.

While the litigation was ongoing in Nigeria Courts, Hercules Offshore petitioned the Nigerian police, asking the police to compel Lionstone to pay the contested sum, while alleging fraudulent conversion of money paid to Lionstone under the contract signed solely between Addax and Lionstone.

But, Lionstone denied the claim adding that the tender was in any case lost, and the only subsisting contract is between Lionstone and Addax solely adding that the foundation for the Hercules arbitration award was wrong.

Lionstone maintained that the only existing contract is between Lionstone and Hercules, which is subject to arbitration at the time due to an alleged breach of MOU terms by Hercules.

Consequent upon the petition, police from the Special Fraud Unit, Ikoyi clamped down on all Lionstone’s accounts in Nigeria, while Lionstone on the other hand sued the police and Hercules for Tortious interference, claiming damages for injuries suffered by the unlawful interference in a civil dispute between parties.

Consequently, the police filed a charge against Amaechi Ndili, his wife Njide, and their company, Lionstone Offshore Services Limited alleging fraudulent conversation of $4.6million

When the matter came up, the trial judge, Justice Sherifat Solebo directed that the case file be returned to the Chief Judge of the Lagos State High Court for reassignment as she would not be able to complete the trial before her retirement