Oluseyi Sowemimo, San (Practicing In The Name And Style Of Seyi Sowemimo & Co) & Ors v. Asset Management Corporation Of Nigeria (2025)

LAWGLOBAL HUB Lead Judgment Report – SUPREME COURT

MOHAMMED BABA IDRIS, JSC (Delivering the leading judgment)

This is an appeal against the judgment of the Court of Appeal, Lagos Judicial Division (Coram: Honourable Justice Joseph Shagbaor Ikyegh, JCA, Honourable Justice Mohammed Lawal Garba, JCA and Honourable Justice Jamilu Yammama, Tukur JCA) delivered on 15th of November 2018.

The appellants who were plaintiffs at the trial court filed a writ of summons seeking for the following reliefs to wit:

(1) A declaration that the claimants are entitled to their full professional fees of 5% of judgment debt which amounted to N5.35 billion as at May 2014 being the amount

(2) An order of court entering judgment against the defendant in the sum of N191 million (One Hundred and Ninety One Million Naira) being the balance of the professional fees due to the claimants being 5% of the judgment debt.

(3) The costs of the litigation.

(4) Further and other reliefs.

It was the appellants’ case that they were appointed joint solicitors by Fidelity Bank Plc in December 2010 and instructed to recover a debt arising from a loan facility of US $7.5 million granted to a company and its personal guarantees.

The appellants initiated a recovery action against them and after a two year trial judgment was entered in their favour in the sum of US $12,926,931 or N1,977,820,556.22 with interest at the rate of 21% per annum which same judgment was upheld by the Court of Appeal in their favour.

However, the respondent bought the debt from Fidelity Bank Plc without their knowledge. The judgment debtors filed a notice of appeal at the Supreme Court and the appellants began making moves to prosecute the appeal.

To their shock, the appellants heard that the judgment debtors commenced settlement with the respondent and every effort was made to ascertain the veracity of the information but no response was received. The appellants were later notified by Fidelity Bank Plc that the debt has been settled and that the respondent had taken over the responsibility for counsel’s fees.

The appellants averred that they were paid the sum of N61,961,380 which was 25% of what they should be paid as professional fees. The appellants also claimed that all efforts to confirm the money recovered by the respondent from the judgment debtors so that they can adequately calculate their professional fees proved futile as they (the appellants) had agreed to take 5% of the recovered sum. The appellants contended that they are entitled to take 5% of N5.35 billion as at May 2014.

The respondent on the other hand averred in their statement of defence that the trial court lacked the jurisdiction to entertain the suit in which a declaration and an order are sought challenging the validity of the respondent’s executive and administrative action and decision and also, that the appellants had no reasonable cause of action.

The respondent’s witness in his statement on oath stated that the respondent owed no duty to the appellants to notify them of their transaction with the judgment debtors. The witness stated that they paid the appellants 5% of the sum recovered from the judgment debtors and not 5% of the judgment debt which the judgment debtors were still disputing as at the time the matter was negotiated out of court. The respondent stated that they had the full authority under law to negotiate with judgment debtors and arrive at an agreement without having to notify the appellants.