Firms slam N153m suit on Shoprite over alleged breach of contract 

In suit LD/ADR/3257/2020 instituted at Lagos State High Court, the two claimants are demanding  a total sum of N153,217,063.15k (One Hundred and Fifty-three Million, Two Hundred and Seventeen Thousands, Sixty-Three Naira and Fifteen Kobo) from the defendant for alleged sundry act of breach of contract and damages arising from it.

The   claimants,   who   are   sister   companies   registered   as   suppliers   of different   edible commodities on demand by the defendant and the agreement between parties allowed the defendant to enjoy a credit facility in which the claimants would supply the defendants request and payments are made to the claimants after delivery.

The claimants filed the suit through it counsel, Funmi Falana of Falana and Falana Chambers, it contend that in view of the existing contractual relationship between parties, the defendant’s refusal and failure to accept goods ordered and imported for its exclusive use violates the express terms of the contract between the parties.

According to the claimants, the two parties entered into contractual relationship in the last quarter of year 2018 and that the goods which were ordered for, and onbehalf of the defendant on its request were at the point of being shipped to Nigeria when the defendant without any notice, terminated the contract between the parties via a letter dated18th September 2019.

Shocked   by   the   action   of   the   defendant,   the   claimants   through   their   representatives approached the defendant to know the reason for the termination of the contract with a view to resolve the matter amicably, but no reason was given by the defendant.

According   to   the   suit,   edible   goods   ordered   and   imported   for   the   exclusive   use   of   the defendant include SADAFCO Ice-cream, OKF brand drinks and Tirma Chocolates strictlyon request.

Apart from the defendant’s alleged refusal to pay the claimants for the goods it requested and ordered for its exclusive use, the claimants contended that the defendant also refused to pay them for developing its own brand of Ice-cream, “Spoonfulls” which include research, and development, brand trademarks, NADFAC registration and approval, label design as requested for by the defendant.

In all, the claimants are praying the Court to compel the defendant to pay them the sum ofN153 million  over alleged sundry breaches of the express terms  of contract  between the parties and damages that flow from such breaches.