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His Lordship, Hon. Justice N. C. S. Ogbuanya of the National Industrial Court of Nigeria, Lagos Judicial Division on Friday 27th April in a judgment delivered ordered ALLIANCE AND GENERAL INSURANCE PLC to pay Retired Staff, MR. FIDELIS EMEKA CHUKWULUE N5Million naira as outstanding terminal benefits which sum is payable in installment; starting with N2M upon judgment, N1M in each succeeding month up to 3 months from date of the judgment.
The Claimant commenced this matter vide a General Form of Complaint with the accompanying frontloaded processes dated and issued on 28th April 2016, against his former employer, basically claiming, among other claims, for recovery of his terminal benefits after 25 years of service. The Claimant’s case is that he was employed by the Defendant on September 27 1988 as an Assistant Superintendant and his employment was confirmed on 4th May 1989, and that he has worked at different locations as directed by the Defendant up till 1st September 2014, when he was compulsorily retired after putting in 25 years of meritorious service. Nevertheless, he was owed terminal benefits, arrears of salaries and unremitted pension.
Claimant’s endorsed Reliefs among others are; A declaration that upon the Defendant’s Board approval of the claimant’s retirement effective 1st of September, 2014, the Claimant is entitled to his terminal benefit from the Defendant and An Order of this Honourable Court directing the Defendant to pay the Claimant all his terminal benefit for the 25 years and eleven months of meritorious service to the Defendant’s Company.
At the trial, both parties testified that they were willing to have the court enter judgment on the basis of their testimonies in respect of terms of their agreement which though have not been reduced into writing but could be recorded by the court and evidence adduced to establish.
On the part of the Claimant, when asked during further Examination-in-Chief: “can you confirm to this court that after the filing of this suit, the defendant approached you for an out of court settlement?” he responded: “Yes. I confirm”.The Defendant’s witness also confirmed the development and both testified on the agreed terms. When asked to tell the court the offer made to him by the Defendant, the Claimant responded thus: “The Defendant brought their computation of the terminal benefit and it came to about N6.7M. And I reminded them of the unremitted pension to the tune of N1.3M and unpaid salary of N1.9M, all totaling N9M plus. They said that since the economy is difficult, I should give them discount and I offered them 20% discount but they requested 30%, and we later agreed at 25% discount, amounting to N7.2M”. Claimant’s Witness (CW) further testified that despite his discounted offer of 25% to the tune of N7.2 M, the Defendant made another offer to him, to the tune of N5M and transfer of ownership of the official car in his possession, which is a Honda Accord 2006 model. He stated that he has now decided to accept the Defendant’s offer on the agreed timeline and conditions, including his payment of professional fees of his counsel on record.
After reviewing the argument of the parties, the Court Presided by Hon. Justice N. C. S. Ogbuanya expressed thus;
“I took active part in the proceedings; listened to and observed carefully the events of the proceedings and read relevant processes, and as well, watched the parties’ witnesses testify on the later development in the matter resulting in a trial narrowed to adduce evidence on the particular fact of the proposed settlement by the parties.
Consequently, the averments in the said pleadings earlier filed and exchanged by both parties are deemed abandoned and are hereby discountenanced. I so hold.
In the circumstance of the case, by directing the narrowing of the trial towards establishing the particular fact of existence and terms of the parties’ proposed agreed terms to resolve their dispute and the witnesses for both parties having given evidence in admission of the agreed terms, I am satisfied that sufficient evidence has been laid by the parties’ witnesses (CW and DW) towards establishing the particular fact of the existence and terms of the proposed agreement by both parties to resolve their dispute in this matter, as also amply demonstrated in the respective counsel’s Final Written Addresses and their adumbration while adopting their said Final Written Addresses. Accordingly, I hold that the parties’ evidence of their proposed agreed terms of settlement succeeds, and judgment is so entered.
On the whole, and for clarity, I hold and order as follows:
(i). N5M (five million naira) shall be paid by the Defendant as a full and final payment of the outstanding terminal benefits owed to the Claimant, which sum is payable in installment; starting with N2M upon judgment, N1M in each succeeding month up to 3 months from date of the judgment;
(ii). Defendant shall execute instrument of Transfer of Ownership of the official car (Honda 2006 model) in the Claimant’s possession to him as the owner, immediately upon this judgment;
(iii). The Claimant upon receipt of each installment shall pay his Counsel on record, Nicholas Muotanya, Esq., the sum amounting to their agreed 10% professional fees, as per the Claimant’s letter of instruction dated 19th April 2016 (admitted in evidence and marked as “Exhibit CF10”);
(iv). All Payments by the Defendant to the Claimant shall be made in a Bank certified cheque issued in the name of the Claimant and passed through the Defendant’s counsel to the Claimant’s counsel on record, who shall forward same to the Claimant, not more than 2 days upon receipt of the correspondence conveying the cheque of payment.
(v). Any default of payment by the Defendant as per the payment schedule in (i) above shall attract an interest of 10% until fully liquidated.
Judgment is entered accordingly. I make no order as to cost.
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