Latest Headlines
Unpaid Commission: Businessman Sues Bank, Demands $60,206.66
Wale Igbintade
A businessman, Michael Ogbole, has dragged First City Monument Bank(FCMB) before a Lagos State High Court, Osborne, Ikoyi, demanding $60,206.66 as unpaid commission for allegedly facilitating a multi-million-dollar transaction with a US-based company, Sky Enterprise LLC.
Ogbole, in suit number LD/ADR/4635/2022, filed by his legal team, Falana & Falana Chambers is accusing FCMB of circumventing him in the deal.
The claimant alleged that on June 2, 2016, he met with FCMB’s Chief Executive Officer, Mr. Ladi Balogun, to discuss how he could help the bank secure finance from Sky Enterprise LLC, a Florida-based firm specialising in trade finance, risk, and debt management.
Following their discussion, Balogun allegedly directed him to contact FCMB’s Treasurer, Mr. Gerald Ikem, who introduced him to Mr.Nomso Ezenta, Head of Structured Funding and Correspondent Banking, to coordinate the transaction.
The businessman said on September 2, 2016, he arranged a meeting between Sky Enterprise’s Global Director for Africa, Mr. Yinka Akinlabi, and FCMB officials at the bank’s headquarters to structure the trade finance deal.
According to the claimant, those who were present at the meeting were senior FCMB officials, and other top executives. After the meeting, the parties exchanged several emails and phone calls to finalise the transaction.
However, in February 2021, the businessman discovered that FCMB had gone ahead with the deal through Sky British, a subsidiary of Sky Enterprise LLC, without his involvement.
He claims that this was confirmed by FCMB’s Annual Report and Financial Statements for the year ending December 31, 2020.
In a letter dated October 12, 2021, the businessman, through his lawyers, demanded the payment of $60,206.66, representing a 1% commission on the $6,020,660, facility secured by FCMB from Sky British. After FCMB failed to respond, another demand letter was sent on January 19, 2022. Despite these efforts, the businessman claimed FCMB has refused to pay.
“The defendant has failed to fulfil its contractual obligation to pay the claimant the agreed commission,” the lawsuit stated. “FCMB’s actions are in breach of the agreement, and they have neglected to settle the amount owed.”
The claimant is asking the court for the following reliefs: “A declaration that FCMB’s failure to pay him for his role in the deal is a breach of contract.
“An order directing FCMB to pay the sum of $60,206.66, plus 21 percent interest accrued since 31st December 2020.
“N20 million, in general, and exemplary damages and N5 million for the cost of the lawsuit.”
However, in a statement of defence, the bank through its lawyer, Prof. Wale Olawoyin SAN, contended that the suit is a gold-digging exercise by the claimant and as such vexatious, outrageous, lacking in merit and liable to be dismissed with substantial costs.
The defendant admitted that sometime in 2016, the then Group Managing Director/Chief Executive Officer of the Defendant, Mr. Ladi Balogun, was approached by the claimant in a public place and presented his case to him, claiming that he had the network to broker Dollar Loans for Nigerian Banks, including the defendant.
Subsequently, the claimant, majorly through telephone conversations and emails, and two physical meetings, held series of discussions with other top executives of the defendant.
The defendant further stated that the subject of discussion was about the possibility of the claimant and his partner, one Yinka Akinlabi, purportedly then, of Sky Enterprises LLC, to facilitate Offshore Dollar loans and/or financing for the purchase of one of defendant’s customer’s vessel.
The defendant stated that during its meeting with the claimant and his partner it was discovered that they did not possess the required capacity, experience and understanding of the international finance market to the extent that they would be able to broker the transaction for which the meetings were convened.
The statement added that the defendant or anybody acting on its behalf did not, at any time, make any commitment or agreement, whether in terms of commission or any other method, with the Claimant, his partner or anybody representing them.
The case, which is before Justice O.O. Oshin, has been scheduled for hearing on October 28, 2024.