Court orders retail chain store to pay AIC $10 million

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January 17, 2018 10:35 AM

Harry Akande marketed Nigeria to Shoprite but retailer says the billionaire can’t prove it

Billionaire, Chief Harry Akande’s AIC Limited, after a seven-year legal battle, has won a court case against South African retail group Shoprite for breaching contract between both parties.

The Igbosere Lagos High Court delivered a judgement of $10 million in damages against Shoprite and its partner Retail Supermarkets Nigeria Limited for sidelining AIC after the former had agreed before launching in Nigeria in 2005 that AIC is to be the exclusive operator and manager of its brand across West Africa, except Ghana where the Shoprite brand was already established.

The judgement delivered by Justice Lateef Lawal-Akapo also included the payment of N1 million to cover the AIC’s legal costs and an interest rate of 10 percent per annum on the damages starting from the date of judgment until the $10 million has been completely paid.

The arguments

AIC through its legal counsel Prof Taiwo Osipitan (SAN) stressed that Shoprite incorporated another company Retail Supermarkets Nigeria Limited and began using the new entity to operate in Nigeria, breaching agreements between them. AIC therefore sued for $2.23 million, N13.6 million as special damages and 50 percent of $92.3 million, the profit the it would have made had it operated Shoprite from 2005 to 2009 when the case began.

Shoprite through its legal counsel Funke Adekoya (SAN) however claimed that there was no joint agreement between both companies. It also argued that AIC has not produced any concrete proof of joint venture agreement between both companies.

The judge considering the documents placed before him by AIC concluded that were indeed business meetings between representatives of AIC and Shoprite which held first in South Africa on April 16, 1998 then at the claimant office in Victoria Island on May 27, 1998. Shoprite also flew in representatives whom were shown possible locations for retail stores in locations including Lekki Roundabout, Trade fair Complex and Lagos National Theatre, Iganmu.

The judge maintains these meetings also resulted in an agreement.

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