Firm sues Nestle Nigeria, Access Bank over breach of trade agreement

Nestle Nigeria Plc, has been sued in an Oyo State High Court, sitting in Ibadan by a local firm, First Nigeria Enterprises, owned by Professor Olatoye Ogunbode.

The suit against Nestle alleges that it broke the trade agreement it entered into with First Nigeria Enterprises.

Access Bank was also dragged into the suit because it provided the financing for the distributorship agreement between Nestle Nigeria and First Nigeria Enterprises.

The firm is asking the court to stop Nestle Nigeria and Access Bank from taking any action against his company until the dispute with respect to the firm’s account would be referred to the court of Arbitration.

Lawyers for First Nigeria Enterprises, Mr. Kolade Olawuni of Babalakin and Co. Chamber, while presenting its case before the court on Thursday, noted that “Essentially, what we are asking for is for the court to restrain the two parties, that is Nestle and Access bank, from taking any further action in respect of the trade account that Ogunbode has in the name of First Nigeria Enterprises.

“The company has a distributorship agreement with Nestle, which was financed by Access Bank.

“But a dispute has arisen concerning an alleged trade gap. The trade gap is disputed and Ogunbode made an allegation of unfair and unjust treatment and manipulation in his account.

“We are now before the court to restrain them from taking any action against him pending when the dispute in respect of the account is referred to arbitration.

“The agreement they have at the inception of the distributorship is that any dispute will be referred to arbitration.

“They have not done that and they have unilaterally decided to take steps that are inimical to his business, which is against the spirit of the agreement.

“This is just a simple case of maltreatment of a partner involved in a trade agreement.

“On February 23, 2017, the court was gracious enough to grant u order of injunction, restraining the two parties from taking any step in the course of the business and towards a provocative letter addressed to Ogunbode on January 19, 2017, saying that they wanted to forestall his business and seize all his instruments of trade.”

However, Nestle Nigeria and Access Bank were absent when the case was heard and presiding Justice Moshood Abass adjourned the case until 10 April, 2017.

You may also like:

Leave a Reply

Your email address will not be published. Required fields are marked *