The Court of Appeal in Lagos has been urged to dismiss an application by Union Bank Plc to stay a High Court judgment on the bank’s “improper” sale of a family’s property situated at no. 6, Moore Road, Ikoyi, Lagos State, which was sold at a grossly undervalued price of N60 million.

The legal team representing Mrs. Olubunmi Ogunde, Yewande Ogunde and others filed a counter affidavit at the Court of Appeal on November 7, 2024.

They argued that the property in dispute would now be worth N13 billion if pre-judgment interest and pro-rated post-judgment interest for the relevant years were calculated.

The disputed one judgment on appeal involves a loan and mortgage matter (originally commenced in 1999, but amended by plaintiffs in 2017).

The facts of the case

• Nairametrics previously reported that on May 31, 2024, the High Court ruled that both the sale of Plot 6A and the bank’s sale of Plots 6B, 6C and 6D were grossly undervalued.
• The verdict was based on market studies of similar properties or locations at the time, according to evidence reviewed by the court.
• The judge also stated that the evidence showed that the mortgagor was not given access to his account, preventing the proper purchase price from being known at the time. The court found that selling the property at such a low price was evidence of fraud.
• Agreeing with the plaintiffs, the judge said the sale of the Ikoyi property by the bank was done in bad faith and at a grossly undervalued price.

“The court awards the sum of N112,050,000.00 excluding N60,000,000.00 (Sixty Million Naira) already paid being the difference of what should have been realized from the sale of the property known as No. 6 Moore Road, Ikoyi, Lagos. , and the interest related to the said balance from 1998 until today (judgment date) at the CBN rate in force, and thereafter from the date of the judgment until the full liquidation of the court debts at the rate of 10% per year.” the judge had declared.

The banks are appealing the decision of the court of first instance

• Disagreeing with the High Court ruling, the bank’s lawyer, Funke Agbor SAN, requested the High Court to stay the execution of the judgment until the bank’s appeal is resolved.
• In it notice of appealseen by Nairametrics, the bank asked the Lagos Court of Appeal to set aside the judgment citing due process, improper valuation and miscarriage of justice.
• The bank argued that the court erred in law by holding that the sale of the mortgaged property was at gross undervaluation and by awarding money damages in favor of the respondents.

“The evidence relied upon by the lower court does not support the family’s claims as to the perceived value of the property at the time of sale, as the prices of similar properties in the same vicinity (some on the High Street) justify the reasonableness of the price at which the property in question was sold by Union Bank,” the bank sent.

Opposition to the bank’s request for stay

Opposing the bank’s application for a stay, Omotola Oni, a director of litigation at Olaniwun Ajayi Chambers, told the Court of Appeal that the bank, despite the lower court’s order, continues to refuse to provide the respondents with the bank statements of the estate because previously noted of the High Court.

He argued that it would be impermissible to grant a stay of execution because the family is entitled to the immediate benefit of their judgment.

“It is proper for the applicant (Union Bank) to pay the judgment amount into an interest bearing account, with interest calculated on the basis of compound interest, in any commercial bank other than the applicant.” he stated.

• He further submitted that although the lower court awarded the judgment sum of NGN52,050,000 (after deducting NGN60 million from over N112 million), in November 2024, the total pre-judgment interest due on the judgment sum, calculated in accordance with the applicable provisions. The 1999 CBN rate and on a compound interest basis, is “N 12,547,686,231.27, while the pro-assessed interest after judgment (at 10% per annum) is N417,333,333.00.”
• He urged the Court of Appeal to find that if the bank’s request is granted and the execution of the judgment is suspended, the interests of the respondents would be seriously harmed.
• Nairametrics reports that the High Court verdict is now before the Court of Appeal for further interpretation of the relevant laws and determination.

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