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Judge Delays Ruling in N156 Billion Debt Recovery Case Over Request for Transfer

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LAGOS, Nigeria – Justice Akintayo Aluko of the Federal High Court in Lagos has postponed the delivery of two rulings in a significant debt recovery suit involving N156,026,032,804.84.

The suspension follows a letter from Wahab Shittu, Senior Advocate of Nigeria (SAN), requesting the Chief Judge (CJ) transfer the case.

Justice Aluko disclosed that he was prepared to deliver the rulings last Friday but was obliged to halt proceedings pending the CJ’s response to Shittu’s letter.

The case, identified as FHC/L/CS8/2074/2023, lists United Bank of Africa (UBA) as the Plaintiff, represented by Temilolu Adamolekun, against Stallion Nigeria Limited and its subsidiaries as defendants.

Shittu represents the 1st, 2nd, and 5th to 11th Defendants.

UBA is seeking to recover the substantial sum from Stallion Nigeria and has appointed a Receiver over the mortgaged properties of the Defendant and its subsidiaries in Lagos, Port Harcourt, and Kano, as stipulated in the mortgage agreements.

During the resumption of proceedings on Friday, July 19, 2024, Adamolekun announced his presence for UBA, while Stallion Nigeria was represented by a counsel from Shittu’s chambers.

Justice Aluko informed the parties of the letter he received from the CJ, which was prompted by Shittu’s request for case transfer, citing delays due to what he described as unwarranted adjournments—a claim Justice Aluko categorically refuted.

“Rulings in these two applications are ready to be delivered; however, counsel to the 1st, 2nd, 5th to 11th defendants wrote a letter for the transfer of the case to my CJ, alleging delays arising from unwarranted adjournments in this case,” Justice Aluko stated.

He added that he had already submitted his comments on the allegations as directed by the CJ.

Although the rulings are prepared, the judge emphasized that he must adhere to the CJ’s directive to pause further actions until a decision is made.

Expressing shock at the letter, Plaintiff’s counsel Adamolekun criticized Shittu’s method of addressing the CJ without informing the other lawyers involved, which he argued was against professional conduct rules.

“I know that the rules of professional conduct forbid a lawyer in an ongoing matter communicating to either the court sitting over the matter or the CJ (in respect of the matter), without copying the lawyer on the other side,” Adamolekun said.

“Specifically, Rule 31(5) and 34 of the Rules of Professional Conduct. So, my lord, I’m surprised that this is coming from a learned SAN.”

He added, “As it is, we don’t have a choice. We have to wait. If we were copied, we would have had the opportunity to counter the allegation. That’s what is called fairness. We would have responded to that petition, and the CJ would have had the opportunity to look at things from both sides.”

Adamolekun further remarked, “I know of ex parte applications, but I’ve never heard of an ex parte letter. It is unfortunate and embarrassing,” highlighting the irony that Shittu’s actions had delayed the case, contrary to his allegations.

Other lawyers involved in the case also expressed their surprise at the development.

Consequently, Justice Aluko adjourned the case to July 19, 2024, to await the CJ’s decision.

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