IN THE NATIONAL INDUSTRIAL COURT OF NIGERIA

IN THE LAGOS DIVISION

HOLDEN AT LAGOS

BEFORE HIS LORDSHIP: HON. JUSTICE S. A. YELWA

THIS 17TH DAY OF JULY, 2024                      SUIT NO: NICN/LA/249/2023

BETWEEN

EMEYA PATRICK EHIAMETALOR                   -     CLAIMANT

AND

HERITAGE BANK                                             -    DEFENDANT

PARTIES

Parties are absent.

LEGAL REPRESENTATION

F. C. Mbagu Esq for the Claimant

Okechukwu Okereke Esq for the Defendant

JUDGMENT

By an Originating Summons dated and filed on 24th August, 2023, the Claimant sought the answers to the following questions to be determined by this Honourable Court;

1.     Whether the failure of the Defendant to abide by the terms of contract of employment as provided in paragraphs 5.4.3.1 and 5.4.3.3 of its Human Capital Policy Manual constitutes a breach of the contract.

2.     Whether, if the answer to issue 1 above is in affirmative, the Claimant is entitled to reliefs sought.

The claimant whereof seeks the following reliefs;

1.     An Order of the defendant to pay the sum of N8,000,000 (Eight Million Naira) only to the claimant in general damages and/or compensation.

2.     In alternative, pay the sum as would be fairly and reasonably adjudged by the court.

3.     Cost of action of N2,000,000 (Two Million Naira)only

The originating summons is supported by a 17 paragraphs affidavit deposed to by  Emeya Patrick Ehiametalor (the claimant), three exhibits attached and an accompanying written address by learned counsel.

The Defendant filed a memorandum of appearance and a counter affidavit of 23 paragraphs deposed to by Chijioke Osaka, on 19th February, 2024, which is attached and marked as Exhibits A-E, and written address of learned counsel, wherein the following issues were raised for determination;

1.     Whether there is a legal basis of the claimant’s claim.

2.     Assuming without conceding that there was any such legal basis, whether the Claimant is entitled to take the benefit of paragraphs 5.4.3.1 and 5.4.3.3 of the Human Capital Policy Manual and then turn around to claim under paragraphs 5.4.3.1 a d 5.4.3.3 of the same manual?

 

On 7th June, 2024 counsel for the parties adopted their respective written addresses in the course of hearing and the matter was adjourned to today, hence this judgment. Let me begin by looking into the submissions and arguments canvased by the defence counsel before going into that of claimant’s counsel in this judgment.

SUBMISSION OF DEFENCE COUNSEL

Learned counsel submitted that Human Capital Manual Policy of the Defendant is not a contract between the Claimant and the Defendant for which the Claimant can claim enforceable rights. It is settled law that the contract of employment and terms contained therein will be the bedrock of an employee’s claim against the Defendant. Counsel cited the case of Olufeagba v. Abdul-Raheem (2009) 18 NWLR (pt. 1173). In the instant case, counsel contended that the Company’s Policy cannot be a term of employee’s employment unless it was incorporated by reference. The claimant did not produce his contract of employment to determine whether the Human Capital Policy Manual was incorporated by reference or not.

Counsel further submitted that by Section 167(c) of the Evidence Act 2011, “evidence which could be and is not produced would if produced be unfavourable to the person who withholds.” The burden of proving the existence of a contract existence of the contract incorporating the Human Capital Policy Manual on which the Claimant relies, falls on him and in the instant case, the condition for that burden to shift has not been made. The Manual Policy is only a Policy and does not confer any obligation or duty on any party. The claimant and defendant are mot ad idem. Counsel cited the case of Ogbonna v. K.S.D. & P. Co. Ltd (2014) 11 NWLR (pt. 1417) 185.

It is the submission of counsel that the claimant having disengaged from the services of the Defendant and accepted his disengagement advice has absolutely no further right of action against the Defendant as the contract of employment has come to an end. This action is therefore not within the contemplation of the jurisdiction of this Court as provided in Section 2t4 of the Constitution of the Federal Republic of Nigeria 1999 (as amended).

Counsel further submitted that assuming without conceding that this Honourable Court has jurisdiction and the Human Capital Manual Policy is part of the claimant’s contract of employment, the Claimant’s action lacks merit and should be dismissed. That same policy provides alternative remedy where a Status Car was not available.  He referred to paragraphs 5.4.3.1 and 5.4.3.3 of the Policy Manual and paragraph 14 of the counter affidavit. The Clamant cannot after receiving the alternative remedy while in employment, turn around after leaving the employment to demand that the other alternative benefit be given to him without showing from the policy that both benefits are required to be given to him contemporaneously. The policy expressly states that “fuel and maintenance allowance” should be paid to the Claimant alternatively until a Status Car is provided.

Counsel while adumbrating in his oral argument maintained that they seek to rely on the 23 paragraphs of the counter affidavit deposed to by Chijioke Osaka and the 5 Exhibits attached which they marked as Exhibits A,B,C,D and E. Counsel maintained that the claimant do not have a course of action against the defendant and that they are contesting the jurisdiction of the court. He further maintained that the claimant has already reaped his benefit and does not need to have a second bite as he has resigned and has been paid his benefits. Counsel urged this court to dismiss the originating summons with substantial cost.

SUBMISSION OF CLAIMANT’S COUNSEL:

Learned counsel submitted two issues for determination in his written address in support of the originating summons, to wit:

1.     Whether the failure of the Defendant to abide by the terms of the contract of employment as provided in paragraphs 5.4.3.1 and 5.4.3.3 of its Human Capital Policy Manual constitutes a breach of the contract.

2.     Whether if the answer to issue 1, above is in the affirmative, the Claimant is entitled to the reliefs sought.

Counsel submitted that the operative word in paragraph 5.4.3.1 of the Defendant’s Human Capital Policy Manual is “entitled”. Paragraph 5.4.3.3 of the said policy serves as an alternative purpose and underscores the importance of the earlier provision. The Canon rules of interpretation is that words or contents of documents should be given its literal and ordinary interpretation, so far, such words or content is not ambiguous. Counsel referred to the case of Mortgage PHB Ltd v. STI Co. Plc (2016) 6 NWLR (pt. 1509) 465 CA. It is the submission of counsel that the wordings in the provisions of the Defendant’s Human Capital Policy Manual, which forms part of its terms of employment are simple and unambiguous, therefore, should be given its literal and ordinary interpretation. This implies that the Claimant having been an employee of the defendant at a managerial level, ought to have been given a status car as a matter of the legally binding terms of employment, which the defendant breached the terms of employment. He cited Abayomi v. SAA-Tech Nig. Ltd (2020) 1 NWLR (pt. 1106) 453 CA.

 Counsel cited the case of DHL INT’L NIGERIA LTD Vs EZE-UZOAMAKA 2020 16 NWLR PT 1751P445 in his effort to define the term “CONTRACT” as the court held “A contract is a legally binding agreement between  two  or more persons whereby rights and duties are acquired by one party  in return for acts or forbearance on the part of the other” Counsel went further to state from the same case what a breach of the contract constitue.

Learned counsel further submitted on issue 2 that by Section 19 (d) of the NIC Act; “this court may where necessary, make any appropriate order, including an award of compensation or damages in any circumstances contemplated by this Act or.... dealing with any matter the court has jurisdiction to hear.”

By the above provisions, this court has the power to grant reliefs, award compensation or damages in a matter it has jurisdiction to adjudicate. Reliefs in form of damages flow naturally as a consequence of a breach of contract. The law is well settled that where two parties have made a contract which one of them has broken, the damages which the other party ought to receive in respect of such breach of contract should be such as may fairly and reasonably be considered either arising naturally from such breach of contract itself, or such as may be reasonably be supposed to have been in contemplation of both parties at the same time they made the contract as the probable result of it. See GE Int’l Operations Nig.  Ltd v. Q-Oil & Gas Services Ltd (2016)10 NWLR (pt. 1520) pg 304.

It is the submission of counsel that in the instant case, the value of the status car which was N20,000,000.00 (Twenty Million Naira) was meant to be amotized  for a period of five years. He referred this court to para.5.4.3.5 of the Human Capital Policy Manual. In other words, the claimant would have paid the sum of N4,000,000.00 (Four Million Naira) annually for the amortized period of five years. The claimant left the employ of the defendant after two years of having been promoted to a manager, so he would have been paid N8,000.000.00 (Eight Million Naira) within that the two years of his stay if the defendant had not breached the terms of employment. Nonetheless, the claimant had to make alternative arrangement to commute to work at his own expense and inconvenience.

Counsel further submitted that the principle of assessment of damages for breach of contract is restitution in integrum, that is to say the plaintiff in so far as money can do it shall be restored into the position in which he would have been if the breach did not occur. See GE INT’L OPERATIONS (NIG) LTD Vs Q-OIL & GAS SERVICES LTD (2016) 10 NWLR PT 1520 PG 304 (Supra).

OPINION OF THE COURT

I have carefully read through all the processes filed and listened to the arguments of both parties. I have similarly read the questions raised by the Claimant in the Originating Summons and looked into the relevant provisions of the instruments in question and the cases cited in the written addresses, and I’m of the view that the issue for determination for this suit is;

“Whether or not upon the consideration of the questions formulated for determination, the Claimant is entitled to the reliefs sought”.

The crux of the claimant’s case is that the Claimant resigned from the employment of the Defendant at a managerial level. The claimant alleged that pursuant to the Defendant’s Human Capital Policy Manual, he was entitled to a Status Car while in the employment of the Defendant as it forms part of the terms of employment that upon employment or promotion of an employee to the position of a senior manager, such employee shall be paid a monetary sum equivalent to the value of such car. He was not given a Status car neither was he paid the monetary sum in lieu as stipulated under the contract of employment. Other employees from manager grade level during the time of the service of the Claimant to the Defendant were given a new Toyota Avensis car which market value was N20,000,000 (Twenty Million Naira) only as Status car in line with the terms of agreement.

In resolving issue 1, I find it apposite to state that the resolution of the question before the court hinges on the interpretation of paragraphs 5.4.3.1 and 5.4.3.3 of the Defendant’s Human Capital Policy Manual, if it constitutes a breach of contract.

See the case of BFI Group Corporation v. Bureau of Public Enterprises (2012) LPELR-9339(SC) where the Supreme Court held:

“It has been stated and restated in a number of decided authorities that in the interpretation of contracts or documents, the basic principle of law, is that, it is not the duty of any court or Tribunal to make contract for parties. See; Fakorede & Ors. V. Attorney General of Western State (1972) 1 All NLR 178 at 189. Contracts as a rule are made by the parties thereto who are bound by the terms thereof and the courts are always reluctant to read meaning into a contract terms on which there is no agreement. See Alhaji Baba v. Nigeria Civil Aviation Training Centre & Anor (1995) 5 NWLR (Pt.192) 388 at 413; (1991) 7 SCNJ 1. In other words, a court or Tribunal cannot write a new contract for the parties.” Per ARIWOOLA, J.S.C

Before resolving the issue, it is pertinent to state that the questions formulated by claimant’s counsel for this court to answer are basically questions of law as it is the contention of counsel by the provisions of paragraphs 5.4.3.1 and 5.4.3.3 reproduced below;

Paragraph 5.4.3.1- Employees on grade level Manager- Senior Manager will be entitled to one official/status car as approved for applicable employee grades.

Paragraph 5.4.3.3- Eligible employees shall be provided with amounts equivalent to the value of the status car, as approved  for applicable employee grades, and shall be granted liberty to purchase (in liaison with corporate services) any car of their choice within the fixed limit.

It is imperative to note that the amount a manager will be given is based on the value of the status car as provided in paragraph 5.4.3.2 thus;

“The Bank shall place a fixed amount per grade as value for status car. The ‘value of car’ shall be as determined by the Executive Management and approved by the Board.”

Furthermore, paragraph 5.4.3.5 states as follows; “the value of the car shall be amortized over a period of five years. Employees shall be entitled to another car after the 5 years amortisation period.”

By the above paragraph, where a status car was provided for an entitled employee, it was subject to be repaid for over a period of 5 years. The Claimant who is no longer in the employment of the Defendant is not in a position to repay the value of the car “over a five year period as provided in the Defendant’s Human Capital Policy Manual.

Paragraph 5.4.3.6 states thus; “The ownership of the vehicle shall be with the Bank and the Bank will be responsible  for bearing the cost of the purchase and the insurance policy.”

It should be noted that from the provision of paragraph 5.4.3.6, the ownership of the status car is with the Bank. Therefore, the employee is only entitled to the car during his employment with the Defendant, as the defendant is the owner of the car.

By Paragraphs 5.4.3.11 and 5.4.3.12 it is provided that:

“Fuel and Maintenance allowance will be paid monthly to employees who are entitled to status vehicle.

“In the event that upon assumption of duty a status car has not been provided such employee will be entitled to a fuel and maintenance allowance until a car is provided for the employee.”

Paragraphs 5.4.3.11 and 5.4.3.12 of the Human Capital Policy Manual quoted above in view answer the questions for determination as posited by the Claimant in the instant case. Arising from these provisions above, the claimant cannot claim for a status car after his resignation from Defendant’s employment as he was paid monthly, for fuel and maintenance allowance. Since the official/status car is not an outright benefit to the Claimant, he is not in a position to claim for it having exited the services of the Defendant.

There is no evidence before the court to show that the Defendant’s Human Capital Policy Manual was incorporated into the claimant’s contract of employment.

The Claimant alleged in Paragraphs 10 & 11 of the affidavit in support of the originating summons as follows:

“That during my time of service to the defendant, other employees of manager grade level upon promotion or employment were given a new Toyota Avensis as a status car in line with our terms of employment which market value was N20, 000, 000.00 (Twenty Million Naira).

“That the value of the car was to be amortized over the period of five years according to the terms of employment.

Nevertheless, the Claimant did not prove the said paragraph, neither was there any evidence in support of his claim before the court.

From the foregoing provisions, question one is determined in the negative.  The defendant did not breach the terms of the contract of employment as provided in paragraphs 5.4.3.1 and 5.4.3.3. The claimant is not entitled to a Status Car after resignation from the employment of the Defendant. He was paid monthly for fuel and maintenance allowance as stipulated in paragraph 5.4.3.11 and 5.4.3.12. I agree with the submissions of the defence counsel.

On question two, which is in the negative, the Claimant is not entitled to the reliefs sought. The Notice of promotion dated Monday, February, 17, 2020 as well as The claimant’s Solicitor’s Letter dated 31st January 2023 filed as annextures in this suit are of no moment which cannot help the claimant’s case.

On the issue of cost of action, as a general principle, courts always have the discretion to award costs to the prevailing party. All the reliefs of the claimant fail and same be and accordingly dismissed. However, the defendant has urged this court to dismiss this originating summons with substantial cost. It is in that line that I exercise my discretion in granting cost, accordingly cost of N100,000 (One Hundred Thousand Naira) only is awarded against the claimant and in favour of the defendant.

Judgment is entered accordingly.

 

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HON. JUSTICE S. A. YELWA

(JUDGE)