The Court of Appeal in Abuja has struck out a case involving claims of N400 million and £159,098 in legal fees and expenses instituted against Ned Nwoko Solicitors over a foreign debt recovery contract relating to the Oyo State Government.
Delivering judgment on Wednesday, Justice Abba Bello Mohammed, in a unanimous decision, held that the Federal High Court lacked jurisdiction to preside over a “simple contract” dispute initiated by Hon. Femi Kehinde of Femi Kehinde & Co. at the trial court in 2020.
While Ned Nwoko Solicitors, Lillian Ngozichukwu Nwoko, Hon. Chinedu Munir Nwoko, and Lina’s International Limited were the appellants, Femi Kehinde, Oyo State Government, the Incorporated Trustees of the Nigerian Governors’ Forum, the Accountant-General of the Federation, the Central Bank of Nigeria (CBN), the Ministry of Finance, and the Attorney-General of the Federation were listed as respondents.
In legal terms, a simple contract is an agreement between parties for the provision of goods or services for a fee, without necessarily meeting any formal statutory requirements.
Dispute At Appeal Court
Lead counsel for the appellants, J.C. Njinkoye, SAN, argued in his brief of argument that the Federal High Court of Nigeria lacked jurisdiction to adjudicate on matters bordering on simple contracts.
He maintained that the lower court erred in law when it assumed jurisdiction over Kehinde’s suit.
“It is our submission that the jurisdiction of a court in Nigeria is statutory. A court will only exercise powers to the extent conferred by the statute establishing it. Therefore, no court has the power to act beyond its statutory limits,” Njinkoye argued.
On his part, Kehinde’s counsel, S.N. Asadu, urged the Appeal Court to uphold the decision of the Federal High Court, which had struck out Ned Nwoko Solicitors’ preliminary objection.
What the Appeal Court Said
In delivering judgment, Justice Mohammed affirmed that the Federal High Court lacked jurisdiction to entertain cases founded on simple contract agreements, a position, he said, has been consistently upheld by superior courts.
He stated that such matters properly fall within the jurisdiction of the State High Courts.
“The settled law is that no matter how well conducted a trial may be, it is a nullity if the court lacks jurisdiction,” the justice added.
Consequently, the Court of Appeal allowed the appeal by Ned Nwoko Solicitors, set aside the ruling of the Federal High Court, and upheld the appellants’ preliminary objection, thereby striking out Kehinde’s suit for lack of jurisdiction.
Backstory
According to court documents seen by Nairametrics, the appeal was against the ruling of Justice Binta Nyako of the Federal High Court, delivered on July 15, 2022.
Kehinde had approached the trial court, seeking N400 million, representing 40% of the N1 billion (first tranche) allegedly paid to Ned Nwoko Solicitors as legal fees for services rendered to the Oyo State Government in connection with foreign debt recovery.
He also sought an additional £159,098 as reimbursement for expenses incurred while prosecuting an arbitration in a London court related to the same contract.
However, Ned Nwoko Solicitors filed a preliminary objection, urging the court to decline jurisdiction on the matter.
In July 2022, Justice Nyako struck out the objection and held that her court had jurisdiction to hear the case — a decision now overturned by the Court of Appeal.