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The Presiding Judge, Benin Judicial Division of the National Industrial Court, Hon. Justice Adunola Adewemimo has faulted the action of Oredo Local Government Council for breaching the tripartite agreement it had with members of Oredo Local Government Council Staff Multi-Purpose Cooperative Society to remit cooperative deductions from their monthly salaries to the Cooperative Society.
The Court ordered the Oredo Local Government Council to pay Council Staff Multi-Purpose Cooperative Society a sum of N112,460,634.52k(One Hundred and Twelve Million, Four Hundred and Sixty Thousand, Six Hundred and Thirty-Four Naira, Fifty-Two Kobo) being unremitted outstanding cooperative dues deducted from salaries of members of Staff Multi-Purpose Cooperative Society in its employment within 60 days.
The Court stated that the action of the Oredo Local Government Council amounts to a breach of duty for which Council Staff Multi-Purpose Cooperative Society and others are entitled to compensation and having considered how long the Council Cooperative Society were deprived of their legitimate dues by the Council, the court ordered the Oredo Local Government Council to compensate the claimants by paying 10% per annum on the judgment sum from 28th of February, 2022, till date.
From facts, the claimants- Oredo Local Government Council Staff Multi-Purpose Cooperative Society Limited, Mr. Monday Uhunmwangho, Mrs Okueleigbe Philomena and Mrs Jemila Oarhe representing themselves and on behalf of staff of Oredo Local Government Council who are members of Oredo Local Government Council Staff Multi-Purpose Cooperative Society Limited had averred that by Oredo Local Government Council Staff Multi-Purpose Cooperative Society By-Law 47, each member is obliged to contribute monthly thrift savings, which will be deducted by Oredo Local Government Council from their monthly salaries and remitted to the Cooperative Society.
The claimants averred that the Oredo Local Government Council up to September 2018, has been making the cooperative deductions and remitting the same to the nominated bank account. However, in breach of an unwritten tripartite agreement, the defendant started defaulting in the remittance of monthly deductions to the Cooperative Society as and when due, hence the decision to institute the case for the recovery of the same.
The parties were availed the opportunity of settling out of court, but the parties were unable to reach a settlement. The Oredo Local Government Council Staff Multi-Purpose Cooperative Society Limited withdrew its application for summary judgment to afford the Council an opportunity to defend the case.
In defence, the defendant- Oredo Local Government Council Counsel objected that the principal claim in the suit being an enforcement of agreement between parties, is unconnected with labour and employment jurisdiction and urged the Court to decline jurisdiction and strike out the suit.
Counsel to the Oredo Local Government Council Staff Multi-Purpose Cooperative Society and 3 others submitted that the Council by failing to defend the suit despite the opportunity given to it by the court is deemed to have admitted the claim and that the Oredo Multi-Purpose Cooperative Society and 3 others have established that the Council is in breach of a tripartite agreement between parties.
Delivering judgment after careful evaluation of the submissions of both parties, the Presiding Judge, Justice Adunola Adewemimo, affirmed the jurisdiction of the court and held that the court is empowered to adjudicate over matters incidental thereto or connected with employment, labour or industrial relations.
The Court stated that there are uncontroverted facts that parties in the case are in a tripartite relationship connected with the employment relationship with the defendant, and membership of Oredo Local Government Council Staff Multi-Purpose Cooperative Society and that the subject matter is connected with the workplace, and is specifically related to the wages of the claimants which the defendant is obliged to remit to the Cooperative Society.
Justice Adewemimo stated that the failure of the Oredo Local Government Council to breathe life into its pleadings does not constitute evidence, the same way averments contained in the statement of facts or defence that is unsupported by the evidence of a witness goes to no issue.
The Court held that the Oredo Local Government Council Staff Multi-Purpose Cooperative Society and others have succeeded in establishing their case against the Council from the preponderance of evidence and Exhibits placed before the court.
Justice Adewemimo directed that the failure of the Oredo Local Government Council to comply with the Judgment within 60 days shall attract 10% interest per annum on the Judgment sum in this suit.
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