WD
IN THE NATIONAL
INDUSTRIAL COURT OF NIGERIA
IN THE LAGOS JUDICIAL
DIVISION
HOLDEN AT LAGOS
BEFORE HIS LORDSHIP: HON. JUSTICE
M. N. ESOWE
DATE: NOVEMBER 19, 2024 SUIT
NO.: NICN/LA/33/2017
BETWEEN
MR TUNDE ADJOTO CLAIMANT
AND
AROUND ‘D’CLOCK SECURITY COY LTD DEFENDANT
REPRESENTATION
Counsel for the Claimant absent
T.
G. Ukogu, Esq for the
Defendant
JUDGMENT
1.
INTRODUCTION
2.
The
Claimant was offered employment with the Defendant on 07.10.2015 as its General
Manager, a role he occupied until his resignation sometimes on 01.12.2016. The
Claimant alleges he was subjected to unfair labour practice, tasked with
discharge of menial jobs which he was not employed for. That the termination of
his employment following his resignation was contrary to the terms of his
employment, claims the Defendant vehemently denies. Whereof the Claimant as per
his General Form of Complaint and Statement of Facts seeks the following
against the Defendant:
a) A DECLARATION that the purported
termination of the Claimant by the Defendant vide its Defendant’s letter dated
20.12.2016 is null and void and is of no effect whatsoever and consequently the
Claimant, is entitled to his salaries, wages and all necessary entitlements
from 01.12.2016 till the date of judgment.
b) AN ORDER of specific performance
commanding the Defendant to perfect the sale of the Nissan Micra Car with
registration number GGE 420 BW which had been sold to the Claimant especially
by delivering the original documents of the said car to the Claimant and
effecting the necessary change of ownership.
c) AN ORDER commanding the Defendant to
pay the Claimant his salaries, wages, leave allowance, all unlawful deductions
and all necessary entitlements from 07.10.2015 to February 2017 and till the
date of judgment:
i.
Salary in
lieu of notice, unlawful deductions,
Outstanding
leave allowance N1,379,050.00
ii.
Gratuity
and February 2017 salary N1,180,000.00
iii.
General
damages N10,000,000.00
Total N12,559,050.00
3.
On receipt
of the Claimant’s General Form of Complaint and accompanying processes, the
Defendant entered appearance and filed its Statement of Defence/Counterclaim.
In its Counterclaim, the Defendant/Counterclaimant alluded that contrary to the
Claimant’s averments of meritorious service, the Claimant performed below
expectation and did not serve the Counterclaimant meritoriously. The
Counterclaimant never sold or auctioned the Nissan Micra Car to the
Claimant/Defendant to the Counterclaim. Whereof the Defendant/Counterclaimant
seeks against the Claimant/Defendant to the Counterclaim the following:
ii.
AN ORDER
for the return of the Nissan Micra Car with registration number GGE 420 BW
which was provided for the Claimant for his use during the period of his
employment with the Defendant.
iii.
AN ORDER
for the payment of the sum of Ninety-six Million Naira (N96,000,000.00) for loss of earning and income for the period which
(the Claimant) ran the affairs of the Defendant as a General Manager.
iv.
The sum of
One Hundred Million Naira (N100,000,000.00)
for breach of contract.
v.
The sum of
One Hundred Million Naira (N100,000,000.00)
for general damages.
vi.
The cost of
this Counterclaim.
4.
The Claimant
responded to the Statement of Defence/Counterclaim with a Reply and Defence to
the Counterclaim, following which the Defendant/Counterclaimant filed a Reply
pleading to the Claimant’s Defence to its Counterclaim.
5.
TRIAL
6.
The
Claimant testified as CW1, he adopted his written depositions as his evidence
in chief, through him eighteen (18) documents were tendered in evidence,
admitted and marked as exhibits C1 to C18 respectively. CW1 was cross-examined,
and he thereafter closed his case. On behalf of the Defendant, one Bukola
Bakare, managing director of the Defendant, testified as DW1, she adopted her
written deposition as her evidence in chief, through her fifteen (15) documents
were tendered in evidence, admitted and marked as exhibits D1 to D15
respectively. DW1 was cross-examined, following which, the Defendant closed its
defence. The matter was then adjourned to enable parties file and exchange
their respective Final Written Addresses to be adopted at the adjourned date.
7.
DEFENDANT’S
FINAL WRITTEN ADDRESS
8.
Learned
Defence Counsel on behalf of the Defendant/Counterclaimant formulated these
issues for determination, to wit:
a)
Was there a contract between the
parties.
b) Was
there expectation from both parties.
9.
Arguing
these issues, Learned Counsel contended that there was a contract between the
parties, and that is why terms are contained in the offer of employment letter.
He argued that parties are bound by the express terms and conditions of a
contract of employment in writing – P. O.
U. Iyase v University of Benin Teaching Hospital Management Board (1999)
Legalpedia (CA) 61141. Counsel proceeded to provide the definition of
employer and employee as captured in Section
91 of the Labour Act, contending that as an employee, the Claimant was
negligent in his duty, failing to discharge his duties with due care, earning
him several queries. He argued that the Claimant has been unable to prove any
of his claims. That the Defendant/Counterclaimant at the point of engaging the
Claimant set out targets to be realised by him, rather the Claimant breached
the contract by not meeting up with the expectation which caused losses and
havoc to the Defendant. Counsel urged the Court to grant the counterclaim and
dismiss the Claimant’s suit.
10.
CLAIMANT’S
FINAL WRITTEN ADDRESS
11.
The Learned
Claimant’s Counsel began his address by raising objection to the admissibility
of the documents marked as exhibits D2 copy of memo dated 02.11.2015), D3 (copy
of memo dated 11.11.2015), D5 (copy of memo dated 15.01.2016), D12 (internal
memo dated 28.09.2016), D13 (internal memo dated 02.11.2016) and D14 (internal
memo dated 29.12.2015) contending that these documents are inadmissible as they
were fabricated to smear the Claimant and the Claimant was never in receipt of
some of these documents. Learned Claimant’s Counsel then submitted the
following issues for determination, to wit:
a)
Whether the Claimant has adduced
credible evidence to entitle him to his claims against the Defendant before
this Honourable Court?
b) Whether
having consideration to the entirety of evidence before this Court the
Defendant is entitled to its counterclaim against the Claimant?
12.
Arguing
issue one, the Learned Counsel argues that the Claimant has provided compelling
evidence to justify the reliefs sought. Exhibits C4 and D8 contradict the
testimony of DW1, which supports the Claimant's case. Exhibit D1 requires
management staff to give three months' written notice. The Claimant testified
that his termination did not follow due process and that he was not given a
fair hearing. Furthermore, the Claimant denies receiving exhibit D12. Assuming
exhibit D12 is authentic and was served on the Claimant on September 28, 2016,
it still does not validate exhibits C4 and D8 dated December 20, 2016, nor does
it comply with paragraph 8(11)(b) of exhibit D1. Non-compliance with exhibit D1
means the Claimant was not properly terminated and is entitled to salary
payments from when his salary was stopped until judgment is delivered.
13.
The
Claimant’s notice of resignation was rendered ineffective by the Defendant's
arbitrary and unlawful actions, which prevented him from continuing his duties.
If the Defendant had not interfered, the resignation would have taken effect on
February 28, 2017. When the Court finds a termination wrongful, a remedy must
follow. Proper notice and salary in lieu of notice must be given on the
employee's last working day, otherwise, the termination is invalid. The Court
has held that employees are entitled to gross salary in lieu of notice unless
otherwise stated. Exhibits C1, C2, C3, and C14 provide evidence that the
Claimant's gross salary is N180,000.00
per month. Exhibit D1 does not limit the amount due in lieu of proper notice.
Learned Counsel also highlighted evidence that the Defendant did not pay the
Claimant's salary for December 2016 and made unlawful deductions, as shown in
exhibits C3 and C15.
14.
Although,
the Defendant claimed these deductions were for tax purposes, exhibit C7
disproves this. The Claimant testified that the Managing Director subjected him
to demeaning treatment, including insults and menial tasks, which the Defendant
admitted. These actions entitle the Claimant to claim damages for wrongful
termination and humiliation. Counsel for the Claimant argues that the Defendant
failed to prove its counterclaim. The Defendant relied on fabricated documents
and failed to comply with its handbook, attempting to portray the Claimant as
an ineffective employee. Exhibits C5, C6, C8, C9, and C10 demonstrate the
Defendant's situation before and during the Claimant's tenure as General
Manager. The Defendant's denial of selling the Nissan Micra car to the Claimant
is unfounded, as exhibit C11 was not contested and the part payment of N100,000 was not proven to be for personal
loan. Therefore, the Defendant's counterclaim should be dismissed.
15.
RESOLUTION
16.
Having
regards to the facts and circumstances of this suit, the pleadings, evidence
adduced, submissions of Learned Counsel on both sides, the Court distils the
issues below for determination, namely:
i.
Is the Claimant entitled to the reliefs
sought herein in the light of the evidence adduced by him before the Court.
ii.
Whether the Defendant is entitled to
the counterclaim?
17.
Before
delving into the resolution of the issues, it is important to first consider
the objections raised by the Learned Claimant’s Counsel to the admissibility of
exhibit D2 (copy of memo dated 2nd November, 2015); exhibit D3 (copy
of memo dated 11th November, 2015); exhibit D5 (copy of memo dated
15th January, 2016); exhibit D12 (Internal memo dated 28th
September, 2016); exhibit D13 (Internal memo dated 2nd November,
2015); exhibit D14 (Internal memo indicating the performance target for the
Claimant dated 29th December, 2015). According to the Learned
Counsel, exhibits D2 and D13 have the same subject matter and date with some
differences in terms of fonts, line spacing and arrangement of paragraphs. This
to him speaks to the dubious nature of the documents and should be construed
against the Defendant. Learned Counsel also argued that exhibits D3 and D14 are
the same documents with different dates. For exhibits D2, D5 and D12, D13
Counsel argued that there was nothing on the face to show that there were
served on the Claimant.
18.
Generally, admissibility of evidence and of documents
in particular are governed by three elements or conditionalities, which are,
there must be pleaded facts in the pleadings in respect of the document sought
to be admitted in evidence; it must be relevant to the issue in controversy or
dispute between the parties before the Court; and it must be admissible regard
had to other basic requirements on admissibility of evidence in general. See Oluyemi
v Asaolu (2010) ALL FWLR (Pt. 522) 1682; Iyagba v Sekibo (2009) All FWLR (Pt.
466) 1975; PAC v INEC (2009) All FWLR (Pt. 478) 260; Abubakar v Chuks (2007) 18
NWLR (Pt. 1066) 386; Ali v Ugwu (2012) All FWLR (Pt. 619) 1079. In the
instant case, exhibits D2, D3, D5, D12, D13 and D14 are documents relating to
the dispute between the parties. In the circumstance, the documents are
relevant to the suit between the parties. See NITEL Plc v Ayu (2008) All
FWLR (Pt. 411) 904; Iliyasu v Ahmadu (2011) 13 NWLR (Pt. 1264) 236 at p.253,
paras. B-E.
19.
Even so relevancy is what governs the admissibility of
a document. Once a document is pleaded and it is relevant, and it is a document
which can ordinarily be admitted under the Evidence Act, the fact that it is a
photocopy should not obstruct its admissibility. The probative value attached
to the document however is another kettle of fish. See Obembe v Okele (2001)
10 NWLR (Pt. 722) 677; Oshunrinde v Akande (1996) 6 NWLR (Pt. 455) 383; Artra
Industries Ltd v N.B.C.I. (1997) 1 NWLR (Pt. 483) 574; Magaji v Nigeria Army
(2008) 8 NWLR (Pt. 1089) 338; F.B.N. Plc. v Okelewu (2013) 13 NWLR (Pt. 1372)
435 at p.472, paras. B-D. The Court has assessed the documents in question
and makes the following findings: I agree with the argument of the Learned
Counsel for the Claimant that exhibits D2 and D13 have same content. The
difference is that exhibit D2 is an unsigned version of exhibit D13. An
unsigned document is a useless document, worthless for all purposes that
require authentication for authenticity - N.U.C. v. Uyo (2023) 16 NWLR (Pt.
1910) 309 at 361, para. C; p.368, para. E. Accordingly, exhibit D2 is
marked tendered but REJECTED.
20.
Exhibits D13 and D14 on the other hand bear the
signature of the Claimant evincing that he received it. Being documents that
were pleaded and are relevant to proving the Defendant’s stance, same are held
to be duly admitted. The Claimant submitted that exhibits D5 and D12 were never
served on him but were fabricated to tarnish his image. Upon careful
examination of exhibits D3, D5 and D12, it suffices to say that there truly is
nothing on the face of these documents to show that the Claimant had knowledge
of its existence or was ever in receipt of same. Having denied its existence,
the onus fell on the Defendant to proof that the Defendant had knowledge or in
fact received the documents which it failed to do. For this reason, the said
documents are hereby marked tendered but REJECTED.
21.
For his
relief one, the Claimant is seeking a declaration that the purported
termination by the Defendant vide its Defendant’s letter dated 20.12.2016 is
null and void and is of no effect whatsoever and consequently the Claimant, is
entitled to his salaries, wages and all necessary entitlements from 01.12.2016
till the date of judgment. Declaratory reliefs are not granted as a matter of
course, the Claimant has a duty to plead and prove his entitlement to the
declaration sought. His evidence must be such that is overwhelming, total,
convincing and credible, evidence which is natural, reasonable and probable in
the peculiar circumstances of the case - In-Time Connection Limited v Ichie
[2009] LPELR-8772[CA]. Therefore, the success or otherwise of a Claimant’s
claims is solely dependent on the strength of his case and not on the weakness
or absence of the defence, and not even on admission by the Defendant - A.
G., Rivers State v A. G., Federation & Anor [2022] 15 NWLR [Pt. 1852] 99 at
166, 218; Adama & Ors v Kogi State House of Assembly & Ors [2019] 16
NWLR [Pt. 1699] 501 at 531; Ilori & Ors v Ishola & Anor [2018] 15 NWLR
[Pt. 1641] 77 at 94.
22.
The weight
of the evidence must be such that when placed on the imaginary scale, the
Claimant’s evidence weighs more than the evidence adduced by the Defendant - Obanla
v A. A. Group Nigeria Limited [2022] LPELR 57899 [CA] 18. It is the law
that a person who asserts the state of facts in a pleading is bound to
substantiate it - Sections 131, 132, 133[1] and 136[1] of the Evidence Act,
2011; Abayomi v Saap-Tech Nigeria Limited [2020] 1 NWLR [Pt. 1706] 453 at 492;
Ibezim v Elebeke & Ors [2022] 4 NWLR [Pt. 1819] 1 at 41; Umera v Nigerian
Railway Corporation [2022] 10 NWLR [Pt. 1838] 349 at 387. Both parties
agree that the Claimant was an employee of the Defendant at the material time
and that their relationship was governed by exhibit D1 (Around ‘D’ Clock
Security Company Limited Employee’s Handbook and General Condition of Service).
23.
In summary,
the Claimant seeks a declaratory order that the termination process was flawed,
asserting that the termination by exhibit C3 dated 20.12.2016 did not comply
with the employee’s handbook (exhibit D1). Consequently, the Claimant argues
that the termination is invalid, and he is entitled to salary payments from the
stoppage of his appointment until judgment. The Defendant on the other hand,
argues that the termination was in accordance with the mutual agreement binding
both parties. That the Defendant had given the Claimant three months’ notice as
evidenced by the letter dated 28th September, 2016 (exhibit D12).
The same letter has been expunged from the Court’s records. It follows that a
Court must not rely on a document that does not constitute part of its records
as it is bound by its records. It must also not rely on contents of a document
it had itself rejected or excluded as an exhibit. See Oladele v. Aromolaran
II (1996) 6 NWLR (Pt. 453) 180 at 226.
24.
The
Claimant resigned from the employment of the Defendant via a letter of
resignation (exhibit C10 dated 01.12.2016) although he contends that his
resignation notice was rendered ineffective by the Defendant's interference. The
position of the law regarding letters of resignation is that
it takes effect from the date it is delivered and received by
the employer or its agent. There is absolute power to resign and no
discretion to refuse or accept the notice of resignation. See Sanusi
& Anor v INEC & Ors (2023) LPELR-61261(CA). Given that the
resignation letter (exhibit C10) predates the termination letter (exhibit C3),
the Claimant’s resignation had already taken effect as at 01.12.2016 when the
letter was received. Since the Defendant did not deny receiving exhibit C10,
the subsequent termination by the Defendant holds no significance. It was
essentially, a case of "medicine after death" as one cannot place
something on nothing and expect it to stand. Exhibit C10 had brought an end to
the contractual relationship between the parties.
25.
It is
noteworthy that the facts of this case and the evidence adduced indicate
ubiquitously that CW1’s resignation was induced by the conducts of his employer
which hints that the Claimant was constructively dismissed. In exhibit D9
(Reply letter by the Defendant’s Solicitors) the Defendant’s Counsel reiterated
that the Defendant had given the Claimant both verbal and written notice
requesting his resignation or disengagement. This supports the stance that the
Claimant supposedly did not resigned voluntarily. Moreover, the Claimant
pleaded and testified that the Defendant had short paid some of his salaries
without explanation and subjected him to verbal abuses in front of his subordinates
and causing him (the General Manager) to carry turkey feeds and sawdust for
their livestock (an act he considered inhumane and degrading).
26.
A
constructive dismissal occurs when an employee does not resign voluntarily but
because the employer has created a hostile or intolerable environment, or
deliberately made the workplace unfavourable. This Court in Miss Ebere Ukoji
v Standard Alliance Life Assurance Co. Ltd [2014] 47 NLLR (Pt. 154) 531
held inter alia: “Globally, and in
labour/employment law, constructive dismissal, also referred to as constructive
discharge, occurs when an employee resigns because his/her employer’s behaviour
has become intolerable or heinous or made life difficult that the employee has
no choice but to resign. Given that the resignation was not truly voluntary, it
is in effect a termination. In an alternative sense, constructive dismissal or
constructive discharge is a situation where an employer creates such working
conditions (or so changes the terms of employment) that the affected employee
has little or no choice but to resign. Thus, where an employer makes life
extremely difficult for an employee, to attempt to have the employee resign,
rather than outright firing the employee, the employer is trying to create a
constructive discharge. The exact legal consequences differ from country to
country but generally, a constructive dismissal leads to the employee’s
obligations ending and the employee acquiring the right to seek legal
compensation against the employer. The employee may resign over a single
serious incident or a pattern of incidents, generally, the employee must have
resigned soon after the incident.”
27.
It nevertheless
seems the Claimant's Counsel did not advert his mind to this position of the
law to take advantage of the available remedy. As a Court of law, the Court
cannot grant reliefs that parties have not sought and must constrain itself to
the claims of parties. In Think Ventures Ltd v Spice & Regler Ltd (2021)
2 NWLR (Pt. 1759) 114 at p. 131, para. G, it was held that a Court is bound
by the reliefs sought and cannot grant what a party did not claim. This
principle is rooted in procedural law, based on the rationale that a party
approaching the Court knows what it wants. The Court, acting as an impartial
umpire, cannot presume to know the reliefs better than the party. This was also
emphasized in Cappa and D’Alberto (Nig.) Plc v N.D.I.C. (2021) 9 NWLR (Pt.
1780) 1 at p. 14, paras. D-G.
28.
The second
leg of this relief is a declaration that the Claimant is entitled to his
salaries, wages and all necessary entitlements from 01.12.2016 till the date of
judgment. From the totality of evidence before the Court, it is clear that the
employment relationship between the parties in this suit is not statutory. It
is purely a master and servant relationship guided by the common law. In such a
relationship the law is settled that, where either party bring the relationship
to an end, they ordinarily cannot claim any benefits from the contractual
relationship other than those that predates the termination of the contract of
employment. So where an employee resigns, he can only be entitled to such
benefits that accrued to him prior to his resignation or such that comes with
his resignation. Such an employee after his resignation cannot seek salaries
for work not done.
29.
Considering
the foregoing, the employment relationship between the parties effectively
ended when the Claimant submitted his resignation letter, making the subsequent
termination by the Defendant irrelevant. The Claimant
was prepared to complete his three months’ notice period to avoid paying salary
in lieu of notice, but the Defendant interfered. As the Defendant insisted on
the Claimant’s immediate exit, it became liable to pay the Claimant his salaries
in lieu of the notice period. Consequently, the Court holds that the
Defendant's purported termination of the Claimant’s employment via letter dated
20.12.2016 is null and void. Accordingly, the Claimant is entitled to salaries
in lieu of notice from 01.12.2016 till 28.02.2017 when his notice period would
have lapsed. I so hold.
30.
For his
relief two, the Claimant is seeking for an order of
specific performance commanding the Defendant to perfect the sale of the Nissan
Micra Car with registration number GGE 420 BW which had been sold to the
Claimant especially by delivering the original documents of the said car to the
Claimant and effecting the necessary change of ownership. The Claimant in
his averment and testimony contends that sometime in September 2016, the
Defendant advertised the sale of its official Nissan Micra Car with
registration number GGE 420 BW for the sum of N400,000.00
and eventually sold the car to him on 24th October, 2016 at the rate
of N400,000.00 after refusing lower
bids from other prospective bidders. He maintains that he paid a deposit of N100,000.00 to the GT Bank account of Mrs
Bukola Bakare the Managing Director of the Defendant on the 25th of
October, 2016, a stance the Defendant denies.
31.
To
substantiate his claim, the Claimant has put forward in addition to his
testimony during cross examination, exhibit C9 letter
dated 19th December, 2016 (Re: Outstanding salaries/balance of
Nissan Micra Reg. No. GGE 420 BW) where the Claimant was asking for his
outstanding salaries to enable him complete payment for the car and exhibit C18
(GT Bank deposit slip evidencing payment of N100,000.00
only on 25th October, 2016. The Defendant
alleges that it never sold the official car to the Claimant. That it was the
Claimant who refused to return his official car upon his exit from the company
and that the money paid by the Claimant was a repayment of loan given to the
Claimant by the Managing Director. The Defendant however did not adduce
evidence of when the loan was advanced to the Claimant and the amount advanced
to the Claimant or any document supporting the said loan grant. The said
Defendant cleared the Claimant on his exit, presupposing that it did not
consider the possession of the car by the Claimant at the point of his
clearance as untoward. It is thus estopped from claiming otherwise now. See Section 169 of the Evidence (Amendment) Act,
2023.
32.
Having
examined the documents presented by the Claimant, the Court finds them to be
sufficient proof of his stance. The Claimant has successfully discharged the
evidential burden placed on him, shifting the burden of proof to the Defendant,
who failed to provide counter evidence. The Supreme Court case Ohiaeri v
Yussuf & Others (2009) LPELR - 2361 (SC) established that when there is
a valid agreement regarding the sale of property, and the circumstances allow
for equitable discretion, the Court can order specific performance, provided
the agreement is neither illegal nor against public policy. Similarly, in Victor
Eka v Kuju (2013) LPELR 22124 (CA), the Court held that in a property sale
contract with part payment, the contract is considered complete and
enforceable, allowing either party to seek specific performance. The case Rano
v Rano (2019) LPELR-51279(CA) further supports this view, indicating that a
Court of equity will order specific performance if the Plaintiff has partially
or wholly executed their part and is in possession of the property, even
without a formal deed of sale or assignment.
33.
In the
absence of any contrary evidence, the Claimant’s relief two hereby succeeds.
The Court orders the Defendant to complete the sale of the Nissan Micra Car with
registration number GGE 420 BW by delivering the original documents to the
Claimant and effecting the necessary change of ownership. Concurrently, the
Claimant is ordered to pay the Defendant the outstanding sum of N300,000.00, representing the balance of
the sale price. I so hold.
34.
For his
relief three, the Claimant is asking for an order commanding the Defendant to
pay the Claimant the sum of N12,559,050.00
being his salaries, wages, leave allowance, all unlawful deductions and all
necessary entitlements from 07.10.2015 to February 2017 and till the date of
judgment in the manner set out (i) Salary in lieu of notice, unlawful
deductions, Outstanding leave allowance N1,379,050.00; (ii) Gratuity and February 2017 salary N1,180,000.00 and (iii) General
damages N10,000,000.00. For his claim
for salary in lieu of notice, unlawful deductions, and outstanding leave
allowance of N1,379,050.00; the
Claimant’s claim is for N839,050 being
deductions from salaries, leave allowance, unpaid salaries and the sum of N540,000.00 for 3 months’ salary in lieu
of notice bringing it to the total of N1,379,050.00.
There is no dispute between the parties that the Claimant as evinced by exhibits
C1 and C2, was to receive N1,800,000.00
annually (N150,000 monthly) with other
benefits such as fuel allowance N25,000,
call card N5,000.
35.
Each of
these heads of claim will now be considered serially. On the issue of salary in
lieu of notice, this Court held that the Defendant was liable to pay to the
Claimant his salary for the notice period from 01.12.2016 to
28.02.2017 since the Claimant was ready to complete his three-month
notice period to avoid paying salary in lieu of notice as required under clause
8 (II) (b) but for the Defendant's insistence on the Claimant's immediate exit.
Salary in lieu of notice presupposes the payment of salaries only in lieu of
notice. Therefore, the Claimant is only entitled the sum N450,000.00 (N150,000.00
for each month December 2016 to February 2017). Regarding unlawful deductions,
the Claimant alleged that the Defendant made several deductions from his salary
and allowances. To support his claim, he presented exhibit C2 (letter dated 19th
December, 2016), exhibit C6 (Claimant’s Solicitor's letter dated January 5th,
2017), exhibit C9 (letter dated 19th December, 2016), and exhibit
C13 (bank statement from Skye Bank). Exhibit C2 included a table of deductions
prepared by the Claimant in his letter to the Managing Director.
36.
The
Defendant argues that exhibit C2 was only written by the Claimant after he
received the termination letter and back dated same. Coincidentally, the said
document was also tendered by the Defendant (exhibit D7), who even though
admits to the deductions argues that the deductions were for tax purposes. The
Defendant, who claimed the deductions were lawful and for Income tax payable to
Ogun State government; deductions based on recovery of the loss of money
associated with his incompetence as apportioned to him and general salary
reduction arising from the need to cut costs which applied to all staff
including the Managing Director, needed to provide evidence of the tax amounts
payable by the Claimant and evidence of such loss occasion by the Claimant. See
Section 5 of the Labour Act. The
documents, particularly exhibits C2 and C13, revealed inconsistent deductions
across months, raising questions about the varying tax liabilities of the
Claimant; a point that only the Defendant, who made the deductions, can clarify
through credible evidence. It is untoward for an employer to unilaterally
embark on salary reduction of its employees in the bid to cut cost as the
Defendant puts it.
37.
From the
Claimant’s calculations, the total deductions amounted to N839,050.00 being deductions from salaries, leave allowance, unpaid
salaries. This computation includes the sum N165,000
unpaid salaries for December 2016 and N180,000
January 2017 and N150,000 for leave allowance.
This Court already ordered the payment of salaries for December 2016 to
February 2017. Granting this leg of the claim as presently constituted, that
is, including December 2016 and January 2017 salaries would amount to double
compensation which the law frowns at. In Thompson & Anor v Akingbehin
(2020) LPELR-58287(SC) the Supreme held, “It is however trite that the law
frowns on double compensation. Where a party has been sufficiently compensated
for a wrong under one head of claim, it would amount to double compensation to
grant an award for the same injury under a different head. See Agu v General
Oil Ltd. (2015) 17 NWLR (Pt. 1488) 327. Also, on leave allowance, the
Defendant tendered exhibit D6 wherein the Claimant had asked that his leave
allowance be paid alongside his November 2016 salary. This request was refused
and the Claimant was referred to the provisions of the Condition of service
(exhibit D1) even though the Claimant claims that the purported minute on
exhibit D6 was doctored.
38.
Nevertheless,
I have examined exhibit D1 which both parties admit regulates their employment
relationship and find no provisions regarding payment of leave allowance. The
Claimant also did not lead evidence to show what terms, or agreement entitles
him to claim same. This leave the Court with the sum of N344,050.00 proven deductions. Consequently, under this leg of the
Claimant’s claim, the Court concludes that the Claimant is entitled to a total
sum of N794,050.00, that is, salary in
lieu of notice – N450,000.00 plus N344,050.00. This amount covers the
Claimant’s salaries for the notice period from 01.12.2016 to 28.02.2017 and
unlawful deductions from salaries and allowances. An employee’s entitlement to
compensation is subject to the provisions of his/her contract of employment.
Typically, an employee is entitled to receive any accrued contractual payments,
such as accrued salaries, until the effective termination date and such other
payments that may be due to the employee, under the terms of his/her employment
contract.
39.
The
Claimant is seeking an order of the Court for Gratuity and February 2017 salary
to the tune of N1,180,000.00. However,
there nothing before the Court to prove how the Claimant arrived at his computation
of the sum of N1,000,000.00 for
gratuity or how he is entitled to same. Therefore, the Court cannot grant the
Claimant’s claim for gratuity in the absence of evidence. Likewise, the
Claimant’s claim for February 2017 salary under this heading cannot be granted
as it has been resolved under the earlier heading. The last sub-head on the
computation of the Claimant’s entitlement (paragraph ‘iii’) concerns the award
of general damages amounting to N10,000,000.00.
The Claimant asserted that prior to his purported dismissal from the
Defendant’s service, he was subjected to several ill-treatments that denigrated
his human dignity. Specifically, in April 2016 and in October 2016, Mrs. Bukola
Bakare, the Managing Director, humiliated the Claimant by verbally abusing him
and assigning him tasks such as carrying turkey feed and sawdust for their
livestock, duties unrelated to his security contract job.
40.
The
Defendant contended that it had always treated the Claimant with the utmost
respect and courtesy, denying any inhumane or degrading treatment during his
employment as the General Manager. The Defendant further argued that the
poultry was meant to raise birds as Christmas gifts for staff and clients, with
all staff participating in its upkeep. Additionally, the Claimant never
expressed disapproval of the poultry operations, from which he also benefited. The
Court observed that the Defendant's failure to recognize the impropriety of
subjecting its General Manager to such tasks highlighted the adverse work
environment and conditions the Claimant endured. General damages are those
implied by law in every breach and violation of a legal right. They represent a
loss that flows naturally from the Defendant's actions, and their quantum need
not be pleaded or proved, as it is generally presumed by law.
41.
Quantifying
general damages involves considering the opinion and judgment of a reasonable
person under the circumstances of the case. Unlike special damages, which must
be specifically pleaded and proved, general damages are presumed to be the
direct, natural, and probable consequence of the act complained of and are
generally incapable of exact evaluation. Therefore, in awarding damages, a
trial Court must assess the quantum of such damages based on the evidence
presented and not on speculative claims or scanty facts. Olokunlade &
Ors v Ademiloyo (2011) LPELR-3943(CA). From the forgoing, the Claimant’s
relief three is resolved in part in favour of the Claimant and against the
Defendant only to the extent that the Defendant is ordered to pay the Claimant sum of N794,050.00
being Claimant’s salary for the notice period from 01.12.2016 to 28.02.2017 and
unlawful deductions from salaries and allowances. The Court also assesses the
sum of N300,000.00 as general damages
for the inhumane and degrading treatment meted on the Claimant by the
Defendant.
42.
In
resolving issue two, whether the Defendant is entitled to the counterclaim, it
is trite that a counterclaim is an independent claim as it has a life of its
own and can survive without the substantive suit. In Zenith Bank & Anor
v Ekereuwem & Anor (2011) LPELR-5121(CA), the Court in describing a
counter claim held that: "It is the law that a counterclaim is a claim on
its own in the same suit whereby the Defendant becomes a Plaintiff or Claimant
and the Plaintiff in the action itself becomes a Defendant for the purposes of
the Counterclaim. The procedure of a counterclaim is resorted to where the facts
of the Plaintiff's case are also conceived by the Defendant as giving rise to
his own reliefs and claims such relief therein to avoid multiple actions. Thus,
the counterclaim must pass the test of pleadings and the burden of proof of
assertions under Sections 135 and 137 of
the Evidence Act".
43.
Relief one seeks a declaration that the termination of
the Claimant/ Defendant to the Counterclaim’s employment was lawful and in
accordance with the employment contract. The Defendant/Counterclaimant argued
that the termination followed the mutual agreement between both parties. The
letter of termination dated 20th December, 2016 came after the
Defendant to the Counterclaim’s letter of resignation dated 01.12.2016. Given
that the law regarding resignation letters states they take effect from the
date they are delivered and received by the employer or its agent, the
subsequent termination by the Defendant is rendered insignificant. The
Defendant did not deny receipt of the letter resignation, making the
termination inconsequential and null and void. Thus, this leg of the
Counterclaimant’s relief is dismissed. I so hold.
44.
For relief
two, the Counterclaimant is seeking an order for the return of the Nissan Micra
Car with registration number GGE 420 BW, which was provided for the
Claimant/Defendant to the Counterclaim during his employment with the
Defendant. The Counterclaimant maintains that it never sold the official car to
the Claimant that the Claimant/Defendant to the Counterclaim refused to return
the official car upon his exit from the company. The Claimant/Defendant to the
Counterclaim contends that in September 2016, the Defendant advertised the sale
of the official Nissan Micra Car for N400,000.00
and sold it to him on October 24, 2016, after rejecting lower bids from other
prospective buyers. He asserts that he paid a deposit of N100,000.00 into the GT Bank account of Mrs Bukola Bakare, the
Managing Director of the Defendant, on October 25, 2016.
45.
The
Counterclaimant failed to provide evidence supporting its stance that the money
paid by the Claimant/Defendant to the Counterclaim was a repayment of a loan
given to the Claimant by the Managing Director and not for the sale of the car.
The Claimant/Defendant to the Counterclaim submitted exhibit C9 (a letter dated
December 19, 2016, regarding outstanding salaries and the balance for the
Nissan Micra), where he requested his outstanding salaries to complete the car
payment. Additionally, he provided exhibit C18 (GT Bank deposit slip evidencing
the N100,000.00 payment on October 25,
2016).
46.
Moreover,
the Claimant/Defendant to the Counterclaim presented exhibit C15 (a clearance
letter), in which the Office Manager certified that all company properties
assigned to him for official duties had been returned. The document speak for
itself. Since the Defendant issued a clearance letter stating that the
Claimant/Defendant to the Counterclaim had returned all assigned property, it
is estopped from claiming that the car should be returned. The Counterclaimant
cannot change its position capriciously. See Section 169 of the Evidence (Amendment) Act, 2023. Therefore, this
relief fails due to a lack of evidence. I so hold.
47.
Relief three
of the counterclaim seeks Ninety-six Million Naira (N96,000,000.00) for loss of earnings
and income during the Claimant/Defendant to
counterclaim’s tenure as General Manager. The Counterclaimant asserts
Defendant to Counterclaim was hired to increase revenue and productivity, which
he gave assurance that he could achieve. However, his performance fell short,
leading to significant losses, reduced patronage, and loss of clients,
including Skye Bank Plc. The Claimant was repeatedly queried for inefficiency,
inadequate supervision, and failure to submit reports timely. Despite these
issues, he could not produce effective marketing proposals. To proof its claim,
the Counterclaimant presented exhibits D4 (internal memo dated December 29,
2015), D8 (letter of termination); D10 (cessation of security services at some
of Skye Bank’s business location); D11 (internal memo dated October 4, 2016,
Re: Dereliction of duty); D13 (Deployment of Officers to FESTAC location) and
D14 (internal memo dated December 2015). The totality of the evidence above
reflects the Counterclaimant’s dissatisfaction with the Defendant to the
Counterclaim’s performance. Having so proven, the burden of proof oscillates to
the Defendant to the Counterclaim.
48.
Conversely,
the Defendant to the Counterclaim asserts that
contrary to the contention of the Counterclaimant, it did not hire adequate
personnel such as marketers, operations drivers, operations managers, and
patrol supervisors despite promises made. This resulted in the Claimant taking
on additional responsibilities, traveling between Lagos, Ogun, Oyo, Osun, and
Kwara States, often driving himself without adequate logistics. Consequently,
he had to sleep in undesirable locations, such as on the roads or with security
personnel at the University of Ibadan, due to the lack of hotel accommodation,
exposing him to significant risks while on official assignments, without
allowances, insurance, or pensions. He further averred that although his
employment letter did not engage him as a marketer, he significantly grew the
Defendant's clientele and capital base within a few months.
49.
Additionally,
the Claimant/Defendant to the Counterclaim states that with his intervention, a
total of 95 guards were employed and twenty new locations were added to the
Defendant's company. He tendered exhibits C4 (handing over note dated 31st
October 2015 from the outgoing GM to the Defendant Counterclaimant) and C5
(Quarterly Review and Current Status report dated 26th February
2016) which showed that the locations increased from 52 to 71; the number
guards from 159 to 253 including the financials which also improved from N4,788,782.00 to N8,089,781 from October 2015 to February 2016.
50.
Against
this backdrop the onus again shifts to the Counterclaimant to proof how the
Defendant’s actions resulted to loss of earning and to lead evidence to proof
the loss N96,000,000.00. In Ecobank v
First choice Properties Ltd & Anor (2024) LPELR-61793(CA) the Court of
Appeal held, "The claim for loss of earnings is in the realm of special
damages and the law is that it must be specifically pleaded and strictly proved
in evidence. For as was held in Gonzee
(Nig) Ltd v Nigerian Educational Research & Development Council & Ors
(2005) LPELR-1332(SC) at page 17 paras. A, per Edozie, JSC: "The
requirement of the law is that special damages should be specifically pleaded
in a manner clear enough to enable the defendant know the origin or nature of
the special damages being claimed against him to enable him prepare his
defence. A claim in the nature of special damages to succeed must be proved
strictly; the Court is not entitled to make its own estimate on such a claim: See
Dumez (Nig.) Ltd. v Ogboli (1972) 1 All WLR 241; Jaber v Basma 14 WACA
140." See also
Onyiorah v Onyiorah (2019) 15 NWLR (Pt. 1695) 227’.
51.
Strictly
speaking, in claims for loss of earnings full particulars must be given by the Claimant
in his pleadings of his rate of earning and of such other facts as may be
necessary to enable the Court to calculate as best and as accurately as it can,
the actual amount of the plaintiff's loss. The Counterclaimant having failed to
specially plead and prove his claim for loss of earning amounting to N96,000,000.00 as required by law, I agree
with the Learned Counsel for Defendant to the Counterclaim that this head of
claim must fail. The Counterclaimant’s relief three is accordingly dismissed. I
so hold.
52.
The Counterclaimant
is seeking the sum of One Hundred Million Naira (N100,000,000.00) for breach of contract. In Dangote Cement Plc v
Ekeson Salins Oil & Gas Ltd & Ors (2019) LPELR-47259(CA), it was
held that in an action for breach of contract, the plaintiff must prove not
only that there was a breach but also that there was a subsisting and
enforceable contract breached by the defendant. There cannot be a breach of a
non-existent contract or a contract that is void or invalid ab initio. See Haido & Anor. v Usman
(2003) LPELR - 5249 (CA) at 25 (D), Access Bank Plc v Ugwuh (2013) LPELR -
20735(CA) at 25-26 (D-A), and
Best Nig. Ltd. v Blackwood Hodge Nig. Ltd (2011) LPELR - 776 (SC) at 42 (D-E).
53.
Without a
subsisting, valid, and enforceable contract, a claim for damages for breach of
contract must fail. In Unity Bank v Ahmed (2019) LPELR-47395(SC), it was
held that where there is a breach of the contractual relationship, damages must
naturally follow. A Judge may award a sum as warranted by the circumstances of
the breach, even without proof of actual loss. See Allied Bank of Nigeria
Ltd v Jonas Akubueze (1997) 6 SCNJ 116. The award of damages is inescapable
where there is proof of breach, as further supported by NITEL Trustees Ltd
& Anor v Syndicated Investment Holding Ltd (2022) LPELR(SC).
54.
The onus is
on the Counterclaimant to provide evidence to substantiate his claims and
establish that the Defendant to the Counterclaim breached fundamental terms or
obligations of the contractual relationship. Fundamental breaches are those
that contravene express and implied material terms of the contract, resulting
in damages naturally flowing in the Counterclaimant’s favour. A fundamental
breach denotes a performance totally different from what the contract
contemplated and entitles the other party to damages and the right to refuse
further performance of the contract. See DHL Intl Nig. Ltd v Eze-Uzoamaka
(2020) 16 NWLR (Pt. 1751) 445 at 486, E-G. In NCC v Motophone Ltd &
Anor (2019) LPELR-47401(SC), the Supreme Court held “in an action for
breach of contract, the measure of damages is the loss flowing naturally from
the breach and is incurred in direct consequence of the breach.” See also Agu v General Oil Ltd (2015) LPELR-24613(SC).
The Counterclaimant has not put forward the terms of exhibit D1 breached by the
Defendant to the Counterclaim to warrant the grant of the sum of N100,000,000 which he claims. The Court is
not at liberty to make speculations or embark on a voyage of discovery in the
dispensation of justice. Therefore, this claim must fail and according fails. I
so hold.
55.
The
Defendant and Counterclaimant is seeking the sum of One Hundred Million Naira (N100,000,000.00) for general damages. The
purpose of awarding general damages is to compensate the Claimant, as far as
money can, for the damages, loss, or injury suffered. The guiding principle is restitution in integrum, which aims
to restore the party to the position they would have been in if they had not
suffered the wrong. This means compensating for the loss that inevitably and
unavoidably flows from the breach, as established in MTN v Corporate
Communication Investment Ltd (2019) LPELR-47042(SC). However, the Court
finds that the Counterclaimant has failed to establish any breach or loss
arising from the acts of the Defendant to the Counterclaim. Therefore, the
Court cannot grant this relief, and it is hereby dismissed. I so hold.
56.
The
Defendant/Counterclaimant, in relief six, seeks an order awarding costs for the
Counterclaim. According to Olusanya v Osinleye (2013) 11 NWLR (Pt. 1367) 148
at 170, A-B, the award of costs is meant to compensate a successful party
without being punitive to an unsuccessful party. Costs are intended to cushion
or alleviate the financial burdens of the victorious party rather than cover
all financial losses incurred during litigation, as emphasized in Egypt Air
Ltd v Ibrahim & Anor (2021) LPELR-55882(CA) and Anazodo v Pazmeck
Intertrade (Nig.) Ltd & Anor (2023) LPELR-59879(SC); (2023) 10 NWLR (Pt.
1891) 1, as well as EKSU & Ors v Fajembola & Ors (2022)
LPELR-57501(CA). Given that all other reliefs in the Counterclaim have
failed, the Court believes that awarding any costs in favour of the
Defendant/Counterclaimant would be unjust. Therefore, this request for costs is
refused. I so hold.
57.
In all, the
first issue for determination is resolved in part in favour of the Claimant.
Issue two is resolved in the negative against the Defendant/Counterclaimant,
the Counterclaim fails in its entirety and is accordingly dismissed. The
Claimant’s claims succeed in part and to the extent set out below, such that
other than the orders enumerated below all other claims of the Claimant fail
and are hereby dismissed. I so hold. The orders of the Court are as follows:
a) IT IS DECLARED that the purported
termination of the Claimant by the Defendant vide its Defendant’s letter dated
20.12.2016 is null and void and is of no effect whatsoever and consequently the
Claimant, is entitled to his salaries from 01.12.2016
till 28.02.2017 when his notice period would have lapsed.
b) AN ORDER of specific performance is
hereby made commanding the Defendant to complete the sale of the Nissan Micra
with registration number GGE 420 BW by delivering the original documents to the
Claimant and effecting the necessary change of ownership. Concurrently, the
Claimant is ordered to pay the Defendant the outstanding sum of N300,000.00, representing the balance of
the sale price.
c) An order commanding the Defendant to
pay the Claimant sum of N794,050.00 being Claimant’s salary for
the notice period from 01.12.2016 to 28.02.2017 and unlawful deductions from
salaries and allowances.
d) General damages in the sum of N300,000.00 (Three Hundred Thousand Naira)
is awarded against the Defendant in favour of the Claimant.
58.
No orders
as to cost, parties to bear their respective cost.
59.
Judgment is
entered accordingly.
Hon. Justice M. N.
Esowe, FCIArb
Presiding Judge