Breach Of Contract : Pay $1.8m, N100m to HAk-LAG-INC, court orders Medview Airline

Breach Of Contract : Pay $1.8m, N100m to HAk-LAG-INC, court orders Medview Airline

By Jude-Ken Ojinnaka

Justice Yellim Bogoro of the Federal High Court sitting in Lagos on Friday ordered Medview Airline to pay over $1.8million as contained in the contractual agreement and another N100 million as damages for breach of agreement occasioned by the lease of an aircraft engine by HAk-LAG-INC. to Medview Airline one of the domestic airlines operating in the country,

The over $ 1.8 million to be paid by Medview Airline to HAk-LAG-INC (plaintiff ) is the accrued or unpaid rent of $50,000 per month together with the agreed monthly interest on cumulative outstanding rent from the 1st of March 2019 till Friday 21st of July 2023 when the judgement was delivered and 3 percent thereafter until the total sum due and payable is fully liquidated.

In addition, the court further ordered Medview Airline to immediately return or release the lease aircraft engine number CFM56 – 3C1 with serial number 866226 in a serviceable condition to the owner, HAK -LAG INC. with the engine to be certified by an independent team of Engineers or a joint team of Engineers of both parties .

In the alternative to returning the aircraft engine in good and serviceable conditions Justice Bogoro ordered that the defendant, Medview Airline to pay the plaintiff, HAK-LAG INC. the sum of $1,200.00 ( One million two hundred thousand USD). being the valued market rate of the aircraft

Besides, Justice Bogoro ordered the defendant to pay the sum of N100,000.000 as general damages for breach of contract .

Delivering judgement in the suit filed and argued by Barister O.A Fashugba and Sunday Chibido counsel for HAK-LAG INC, the trial Judge held that there are several evidence showing that the plaintiff was served with the Motion on Notice filed by the plaintiff and hearing notices, but failed to appear, represented or filed a defense to the suit.

Justice Bogoro added that it is on record that the matter was adjourned for up to six times to enable the defendant file a defense or appear in court , but opted not to take the opportunity.

Consequently, she held that undefended claim in law is deemed as admission of the facts as stated. The judge therefore ruled that the claims of the plaintiff as stated in the motion papers before the court succeed.

In its statement of claim, HAK -LAG INC. averred that by a lease agreement dated the 31st day of December, 2018, Medview took a lease of one of its aircraft engines for a period of twelve months to boost its operations.

The commencement date of the agreement according to the plaintiff is 1st day of January,2019.

The plaintiff averred that by clause 4.2 (b) of the lease agreement, , the monthly rent for the lease engine is the sum of $50,000 with 3 percent monthly interest chargeable on any cumulative sum outstanding which remains unpaid at the end of every month.

Claimant said that contrary to the lease agreement , the defendant made late payment of the agreed deposit of $100,000, being rent for the month of January 2019 and that it later failed to pay the rent for the month of February 2019.

It was further stated that the plaintiff caused a letter to be written through its counsel to the defendant and the defendant in its reply stated that the engine was not fully utilised during the period.

HAG-LAG INC. added that consequent upon his expression of displeasure, the defendant in the month of May 2019 paid the sum of $40,975 as part payment for the month of February 2019.

The plaintiff added that since then, all efforts to see that Medview Airline performed its obligations under the lease agreement or return the leased engine in good conditions has proved abortive

Ishaya Ibrahim:
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