PROPERTY NEWS

FOLLOWING controversy surrounding a Lagos property, allegedly owned by Sterling Assurance Nigeria Limited, which judgments were obtained in error, a Lagos High Court and another Magistrate Court have nullified the two courts' verdicts, which were in favour of the insurance company.

Justice L.B. Lawal-Akapo made the nullification order recently, following the court's finding that the earlier judgments were obtained under fraudulent and irregular cover in the nation's legal practice.

The controversial property, a two-storey-building complex, is located on the Mainland, specifically at Plot 318, Ikorodu Road, Anthony Village, Lagos. It is located about eight buildings away from Anthony Bus Stop, by LASU Campus along Ikorodu Road. The property, which has been for office use was said to be originally owned by National Bank of Nigeria, which had since been acquired by Unity Bank.

The bank had granted a facility to a firm, MCROYAL Financial Bureau Limited, using the property as collateral. Dispute thereafter arose between the parties over the sum left to be refunded. The unresolved difference, which was taken to court, is yet to be decided.

But amidst the suit, Sterling Assurance bought over the property. To assume possession, the insurance firm applied to the High Court for an order to possess the property. It sued a tenant, Trustworld Insurance Company Limited and persons unknown.

In his judgment in July last year, retired Justice L.G.A Marsh said: "The defendants were served with the originating summons for possession and all the attachments thereto. The affidavit of service by Odeniyi Fredrick, a sheriff of this High Court confirms the service.

"I am satisfied that the defendants had notice about the present action, the venue of the trail and the date but chose not to file a counter affidavit or take steps to defend the action. I am equally satisfied upon reading through the deed of assignment that the applicant had established his interest in the land and that I can proceed to grant judgment in his favour."

Marsh continued: "Accordingly, it is ordered that possession of the property, the subject matter of this suit be given to the claimant forthwith and that the defendants be and are hereby restrained from further trespassing on the said property at Plot 318, Ikorodu Road, Anthony Village, Lagos."

Soon after the judgment was delivered, the initial firm, which used the property as collateral, began moves to undo the verdict. Through an application by Mr. Adebowale Olusegun Kolawole and MCROYAL Finance Bureau Limited, the duo claiming interest on the property, asked the court to set aside the verdict.

As the High Court began to look into the claims by Adebowale and MCROYAL, curiously, Sterling Assurance filed another suit to a magistrate against Trustworld Insurance Company, seeking an order to recover possession of the property. The plaintiff, Sterling, had said that it needed to take over the property for two reason - personal use and substantial repairs.

During one of the proceedings in September last year, Senior Magistrate A.F. Adeeyo, was informed that the parties were willing to settle and a term of settlement was consequently drawn, which eventually became the judgment of the court. The court record shows that one Oladipo Martins, an alleged administrative manager of the defendant company signed the terms of settlement.

Based on the controversial settlement, Sterling Assurance applied and got an order of court to execute the judgment. The execution led to forceful ejection of the Trustworld from the property.

Ruffled by the development, Trustworld Insurance Company Limited applied to the same court, alleging fraud and sought for the setting aside of same. The grounds of the application are:

That the judgment delivered on October 8, 2008 was obtained by fraud in default of appearance of the applicant.

The plaintiff surreptitiously approached the court to obtain the said judgment after it had filed the same application at the High Court in suit no ID/404M/2008 between the same parties.

The plaintiff concealed and/or failed to inform the court of the fact that the defendant and interested parties were already contesting the judgment of the court and that the order was vague and incapable of being executed.

Setting aside her earlier order, Adeeyo said that the whole process of getting, which led to the order was fraudulent and therefore, the court would be doing justice to set the verdict aside.

She said: "The whole process that led to the adoption of terms of settlement as judgment of this court is to my mind nothing but a scam and no house is built on sand can stand, it is bound to collapse. Based on all the foregoing I hold as follows, the trial court has the inherent power to set aside its own judgment. A judgment which is a nullity and obtained by fraud is not worth more than the paper on which it is written and can therefore be set aside by the same court that gave the judgment."

The magistrate continued: "Since this court is not funtus officio for the purpose of setting aside its judgment obtained by fraud, I hold that the judgment of 8th of October 2008 is hereby set aside."

Commenting on the execution of the judgment, which saw the defendant's properties damaged, the magistrate said that she had observed from the affidavit in support that execution was carried on December 9th, 2009 at a time when the court was on strike and no sheriff was involved but the services of thugs and hoodlums were engaged which made the whole process illegal.

On the abuse of court process, Adeeyo if she had known earlier that the same party had gone to high court on the same matter, which is still pending, the court would not have ventured in to adoption of the terms of settlement. On that note, she struck out the whole suit.

Few months after, Justice Lawal-Akapo of a State High Court made a similar pronouncement, having reviewed submissions of counsel and exhibits attached.

He said: Consequent upon the foregoing, I hold that the judgment of this court delivered on July 8th, 2008 was spuriously obtained and same is fraught with fraud and irregularity. In conclusion, I make the following order:

The judgment of this court delivered on July 8th, 2008 having been obtained by fraud and irregularity and execution carried out thereafter are hereby set aside.

Mr. Adebowale Olusegun Kolawole and McRoyal Finance Bureau Limited are hereby joined as second and third defendants respectively in this suit.

The claimant shall amend all originating processes to reflect the joinder and effect service of the same on all the parties joined.

Prayer for of the interveners' application seeking a stay of execution of judgment is incompetent and same is accordingly struck out," Akapo concluded.