Aiico Insurance PLC V. Addax Petroleum Development Company Limited (2014)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

UZO I. NDUKWE-ANYANWU, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the judgment of the High Court of Lagos State delivered on 14th of December, 2010. The Respondent as claimant filed a writ of summons and Statement of claim against the Appellant as Defendant. The Respondent as claimant claimed against the Appellant as follows: –

(a) The sum of N300, 143,098.92 (Three Hundred Million, One Hundred and Forty Three Thousand, Ninety Eight Naira, Ninety Two Kobo) being outstanding indebtedness due and owing to the claimant as of the 1st day of April, 2006 from Pension Fund Policy No:7079 and accrued interest there from.

(b) Interest at the rate of 21% per month on the outstanding sum due and owing from the 1st April, 2006 till judgment is delivered.

(c) Interest on the adjudged sum at the rate of 10% per annum from the date of judgment till the judgment debt is satisfied.

The Appellant as Defendant filed its memorandum of appearance and filed its statement of defence. After a full trial, the learned trial Judge delivered its considered judgment and found for the claimant now Respondent.

The facts of this suit in a nutshell is as captured by the Respondent.

1.1 The Respondent on or about the 1st day of January, 1991, entered (through its predecessor in title, Ashland Oil Nigeria Company) into a pure pension policy agreement with the Appellant to manage its investment funds under the conditions stipulated in the Pure Pension Policy No: 7079 and the Private Placement Memorandum for the AIICO Managed Investment Fund (AMIF). See Exhibits C1 to C3 at pages 62 to 74 of the Record of Appeal.

Pursuant to the provisions of Pure Pension Policy, the Respondent was expected to pay annual premiums to the Appellant as at when due. This the Respondent consistently and diligently did from 1991-2004, and was issued receipts by the Appellant as expressed in receipts of Premium payment, i.e. Exhibits C4 (a-g) at pages 75 to 82 of the Record of Appeal.

However, on or about the 16th day of June, 2004, the Respondent was no longer interested in the appellant insuring and managing its pension fund. Consequently, the Respondent through its letter of 16th June, 2004 terminated the policy with the Appellant and demanded a bulk surrender of its total pension fund plus accrued interest in accordance with the AMIF placement memorandum.

Sequel to the termination of the Policy, the Appellant vide letter of 15th July, 2004 informed the Respondent of the performance of the investment Fund as at the 1st day of July, 2004. Pursuant to this, series of meetings were held between the Respondent and the Appellant, wherein the Appellant made a repayment proposal of the Respondents investment as expressed in Repayment Proposal which was accepted by the Respondent. The parties also resolved the issue concerning the termination of the contract and same was laid to rest.

By repayment Proposal, the Appellant was to make eleven quarterly payments of various sums totaling N532, 451,991.82k (Five Hundred and Thirty Two Million, Four Hundred and Fifty Thousand, Nine Hundred and Ninety-Nine Naira, Fifty-Two Kobo) to the Respondent beginning from the 1st day of January, 2005 and to terminate on the 1st day of July, 2007.

Notwithstanding the agreement by parties that the Appellant must adhere strictly by the repayment mode, the Appellant defaulted severally in the timing of the installments paid. However by the Appellant’s letter of 2nd November, 2006 with attachment showing fund performance and unpaid outstanding the Appellant admitted unequivocally that the total amount due and outstanding to the Respondent as at the 1st day of April, 2006 is N300,143,098.92 (Three Hundred Million, One Hundred and Forty-Three Thousand, Ninety-Eight Naira, Ninety Two Kobo).

The Appellant refused, failed and neglected to transfer the above sum to the Respondent, but instead fraudulently made use of same by hiding under a purported directive from the National Pension Commission.