A High Court in Effurun, Delta State, has ordered Sterling Bank Plc to pay over N3.3 billion in damages for the illegal sealing and forceful takeover of Wellington Hotel Ltd’s premises. The judgment, delivered by Justice Emmanuel Dolor on Monday, in Suit No. EHC/75/2020: Wellington Hotel Ltd vs. Sterling Bank Plc & Anor, holds the bank accountable for unlawful actions that have resulted in substantial losses for the hotel.
Wellington Hotel Ltd, the claimant in the case, initiated legal proceedings against Sterling Bank Plc and Bay Resources and Allied Services Ltd in May 2020, accusing them of forcibly occupying the hotel premises between September 2015 and May 2016. The court not only condemned the unlawful occupation but also set aside the sale of Wellington Hotel by Sterling Bank to Bay Resources and Allied Services Ltd.
The ruling mandates Sterling Bank to pay N1 billion in general damages, along with an additional N2 billion as special damages for the period during which the bank illegally occupied the hotel. Furthermore, the court ordered the bank to pay N1,337,298,750 in special damages for the loss of income sustained by Wellington Hotel during the eight months of unlawful occupation. Additionally, N2,895,650 was awarded to compensate for the destruction of perishable items within the hotel during the occupation.
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Justice Dolor also directed the bank to provide a detailed account of the proceeds made during the illegal occupation and management of the hotel, with the information to be submitted to the claimant by January 25, 2025. In addition, the court imposed a 20% interest on the total damages, starting from the date of the judgment.
The court ruled that Wellington Hotel Ltd had the legal right to file the suit and was in actual possession of the property at the time of the invasion. However, the judge dismissed the claimant’s defamation claim, noting that the absence of witnesses other than the hotel’s Managing Director weakened the case.
Wellington Hotel Ltd had sought declarations that the defendants’ actions amounted to trespass and that the involvement of the Nigerian Security and Civil Defence Corps (NSCDC) to forcibly shut down the hotel was unconstitutional and illegal.
Representing the claimant, Dr. Jonathan Ekperusi and Frederick Agbonifo from O. Obriks Uloho and Co chambers praised the court’s judgment, calling it a “classic” ruling. They commended Justice Dolor for upholding the rule of law in a case that has drawn significant attention.
Interestingly, the defendant, Sterling Bank, failed to appear in court on the day of the ruling or send any representatives, raising questions about the bank’s commitment to addressing the claims.
