Alleged libel: Court awards N50b damages against bank

A Lagos High Court in Ikeja has ordered Stanbic-IBTC Bank Plc
and CRC Credit Bureau Ltd to pay a stockbroking firm, Longterm
Global Capital Ltd, N50billion as damages for alleged libel.
Justice Babajide Candide-Johnson made the order after upholding
Longterm Global Capital’s claim that first and second defendants
Stanbic-IBTC and CRC Credit Bureau published a false allegation
that the firm owed the bank N543, 030.843 which had yielded an
interest of N213, 537, 753 as at October 31, 2012.

Justice Candide-Johnson directed the defendants to publish in
seven days, a retraction and apology to the claimant on the cover
pages of Sunday and Monday editions of the Punch, Thisday and
Guardian newspapers, in respect of the alleged false indebtedness
publication.

The judge also directed CRC Credit Bureau to immediately delete
from its electronically published data bank and all other
publications, all references to the alleged indebtedness of the
bank’s customer to the bank.

He further made an order of perpetual injunction restraining
Stanbic-IBTC Bank PLC and CRC Credit Bureau Limited, from further
publishing any other materials or details relating to the alleged
indebtedness of the claimant.

Finally, the court ordered the payment of interest on the above
judgement sum at the rate of 10 percent per annum from the date of
judgment until the date of the final payment by the defendants in
line with the provision of Order 35 Rule 4, of High Court of Lagos
State (Civil Procedure) Rules, 2012.

In its statement of claim, Longterm Global Capital Ltd said due
to the “deliberate, malicious and/or injurious falsehood” published
by the defendants in relation to its credit status, it was unable
to access any credit facility from all financial institutions in
Nigeria,

It averred that the defendants’ action adversely affected it’s
business reputation and it had been effectively blacklisted and
classified as a bad or delinquent borrower and consequently
shut-out of Nigeria’s credit system.

In urging the court to dismiss the claimant’s suit, the bank
averred that it did not author the credit status report cited by
the claimant but merely provided the second defendant with the
status of the credit facility obtained by the claimant from it in
discharge of its obligations under the guidelines for the
Licensing, Operation and Regulations of Credit Bureau in Nigeria
(CBN Licensing Guidelines).

It also averred that the aforementioned information it provided
to the second defendant was true and consistent with its records,
and were not borne out of ill-will or malice and were not intended
to disparage the claimant’s trade of business as alleged.

Stanbic/IBTC also stated that the claimant’s indebtedness arose
as a result of a credit in the sum of N600 million, by virtue of
letter of offer dated March 27, 2008 adding that the said
indebtedness had been subject of litigation since December 23,
2009, in a suit marked FHC/L/CS/1491/09, Re; Longterm Global
Capital Limited and Patrick Akinkotu vs. Stanbic/IBTC, Appeal No.
CA/L/194/2011, Stanbic IBTC Vs. Longterm Global Capital and Patrick
Akinkotu.

It added that a notice of appeal dated May 13, 2013, in respect
of the matter had been filed at the Supreme Court of Nigeria on a
Motion on Notice dated May 13, 2013.

It also stated that the said indebtedness had been acknowledged
in the judgment by the Federal High Court in suit number
FHC/L/CS/1491/09, Re; Longterm Global Capital Limited and Patrick
Akinkotu vs. Stanbic/IBTC.

A Lagos High Court in Ikeja has ordered Stanbic-IBTC Bank Plc
and CRC Credit Bureau Ltd to pay a stockbroking firm, Longterm
Global Capital Ltd, N50billion as damages for alleged
libel.
Justice Babajide Candide-Johnson made the order after upholding
Longterm Global Capital’s claim that first and second defendants
Stanbic-IBTC and CRC Credit Bureau published a false allegation
that the firm owed the bank N543, 030.843 which had yielded an
interest of N213, 537, 753 as at October 31, 2012.

Justice Candide-Johnson directed the defendants to publish in
seven days, a retraction and apology to the claimant on the cover
pages of Sunday and Monday editions of the Punch, Thisday and
Guardian newspapers, in respect of the alleged false indebtedness
publication.

The judge also directed CRC Credit Bureau to immediately delete
from its electronically published data bank and all other
publications, all references to the alleged indebtedness of the
bank’s customer to the bank.

He further made an order of perpetual injunction restraining
Stanbic-IBTC Bank PLC and CRC Credit Bureau Limited, from further
publishing any other materials or details relating to the alleged
indebtedness of the claimant.

Finally, the court ordered the payment of interest on the above
judgement sum at the rate of 10 percent per annum from the date of
judgment until the date of the final payment by the defendants in
line with the provision of Order 35 Rule 4, of High Court of Lagos
State (Civil Procedure) Rules, 2012.

In its statement of claim, Longterm Global Capital Ltd said due
to the “deliberate, malicious and/or injurious falsehood” published
by the defendants in relation to its credit status, it was unable
to access any credit facility from all financial institutions in
Nigeria,

It averred that the defendants’ action adversely affected it’s
business reputation and it had been effectively blacklisted and
classified as a bad or delinquent borrower and consequently
shut-out of Nigeria’s credit system.

In urging the court to dismiss the claimant’s suit, the bank
averred that it did not author the credit status report cited by
the claimant but merely provided the second defendant with the
status of the credit facility obtained by the claimant from it in
discharge of its obligations under the guidelines for the
Licensing, Operation and Regulations of Credit Bureau in Nigeria
(CBN Licensing Guidelines).

It also averred that the aforementioned information it provided
to the second defendant was true and consistent with its records,
and were not borne out of ill-will or malice and were not intended
to disparage the claimant’s trade of business as alleged.

Stanbic/IBTC also stated that the claimant’s indebtedness arose
as a result of a credit in the sum of N600 million, by virtue of
letter of offer dated March 27, 2008 adding that the said
indebtedness had been subject of litigation since December 23,
2009, in a suit marked FHC/L/CS/1491/09, Re; Longterm Global
Capital Limited and Patrick Akinkotu vs. Stanbic/IBTC, Appeal No.
CA/L/194/2011, Stanbic IBTC Vs. Longterm Global Capital and Patrick
Akinkotu.

It added that a notice of appeal dated May 13, 2013, in respect
of the matter had been filed at the Supreme Court of Nigeria on a
Motion on Notice dated May 13, 2013.

It also stated that the said indebtedness had been acknowledged
in the judgment by the Federal High Court in suit number
FHC/L/CS/1491/09, Re; Longterm Global Capital Limited and Patrick
Akinkotu vs. Stanbic/IBTC.