A high court in Lagos, Nigeria has awarded the sum of $10 million against South African retail giant, Shoprite Checkers (PTY) Limited and its business partner, Retail Supermarkets Nigeria Limited for a breach of contract with AIC Limited.
The contract between Shoprite and AIC Limited was entered in 1998 and the legal battle has been ongoing for 7-years.
AIC asked for a court order for payment of the sum of $2.23 million and N13.6 million for special damages. The company also asked for 50% of $92.3 million, as loss of profit it suffered as a result of the incorporation of Retail Supermarkets Nigeria Limited for breach of agreement between 2005—2009.
Judgement delivered by Justice Lateef Lawal-Akpo, held that Shoprite and partners were in breach of agreement when the partners secretly established Shoprite outlet in one of the locations shown to them by AIC, without the knowledge of AIC.
Due to this secret conspiracy, the Judge held that AIC is duly entitled for compensation and as such the cost of compensation and an interest at the rate of 10% per annum which summed up to N1 million was awarded against Shoprite.
The judgement took into consideration the expenses incurred by AIC from 16th April 1998 till date. These expenses included preparing and registering Shoprite-AIC Limited, preparing feasibility reports, applying and procuring visas on 27th May 1998 for Shoprite’s representatives and expenses spent on another meeting.
This compensation is effective from date of the judgement until a final liquidation of the entire sum.