Sterling Bank slammed with N75m fine for breach of contract

Justice Olumuyiwa Martins of a Lagos High Court has awarded N75 million in damages against Sterling Bank Plc for breaching a non-disclosure and non-circumvention agreement with Comfort Stevens Nigeria Limited and its Chief Executive Officer, Dr. John Nwankwo.

The court awarded N50 million for damages and N25 million for the cost of action by the claimants, Comfort Stevens Nigeria Limited and Dr. Nwankwo.

Justice Martins ruled that the bank’s conduct in circumventing the Confidentiality Deed dated September 16, 2019, and the Non-Disclosure and Non-Circumvention Agreement dated October 3, 2019, by engaging in the same project with a third party without the claimants’ consent and full disclosure, was wrongful and unlawful, resulting in a material violation of the agreements’ terms and conditions.

She declared: “The breach of the confidentiality deed dated September 16, 2019, and the non-disclosure and non-circumvention agreement dated October 3, 2019, is deemed unlawful and unjustifiable.

“An order of perpetual injunction is granted in favour of the claimants to prevent the defendant, its personnel, and agents from directly or indirectly committing or engaging in any act prohibited by the terms and conditions of the non-disclosure and non-circumvention agreement dated October 3, 2019.

“The sum of N50 million is awarded as damages for breach of the non-disclosure and non-circumvention agreement dated October 3, 2019, in favour of the claimants.”

“The sum of N25 million is awarded as the costs of this action in favour of the claimants. This is the Judgment of the court.”

The claimants had sought to embark on a N10.5 billion footwear and shoe component technology and automated project in Aba.