Supreme Court Affirms Heavy Damages Against Fidelity Bank

The Supreme Court of Nigeria has upheld the rulings of both the High Court and the Court of Appeal in a protracted legal dispute between Fidelity Bank Plc and Sagecom Concepts Limited, an Ibadan-based firm.

With this final judgement on April 11, 2025, the Supreme Court, in a unanimous decision by five justices, upheld the rulings of the Lagos State High Court and the Lagos Division of the Court of Appeal.

The case, which reached the Supreme Court in 2018, ended with a final judgement last month, holding Fidelity Bank liable and ordering it to pay damages of least $138,842,249 to Sagecom Concepts Limited.

The legal battle, which began in 2005, has spanned two decades, moving through the trial court, the Court of Appeal, and ultimately to the Supreme Court. However, the final liability may exceed $138.8 million, as the awarded damages are subject to a compound interest rate of 19.5% per annum, calculated from the respective due dates each year until the actual date of payment.

The apex court described Fidelity Bank’s action as an attempt to “benefit from its own wrong by disobeying a valid court order.”

In the lead judgement delivered by Justice Adamu Jauro and supported by all the other four justices on the panel, the court condemned the bank’s “egregious conduct” for disregarding the court order, stating that it deprived Sagecom of economic benefits for years.

Justice Jauro held that the Appellant (Fidelity Bank), which sold the property to the first Respondent (Sagecom), had the duty of delivering possession to the company.

 

He also said, “It is also in evidence that even after the delivery of the judgement of the Federal High Court in suit No. FHC/L/CS/957/2005, the second Respondent (G. Cappa Plc) continued to be in possession and control of the property, hence the judgements of the two lower courts granting the claim for special damages in favour of the first Respondent against the Appellant and second Respondent jointly and severally from 21st June, 2011, are in order.

“In my view, apart from the mountain of evidence against it, allowing the Appellant to escape liability as it so desperately seeks to do here would be tantamount to allowing it to benefit from its own wrong. The notorious principle of equity that a court ought not to allow a person to take advantage of his own wrong still remains part of our jurisprudence,” he held.

In a concurring opinion, a member of the panel, Justice Jummai Hannatu Sankey, held, “The trial court and the court below recognised adequately that the Appellant’s wrongful sale directly caused the first Respondent’s financial losses, thus making the Appellant liable in damages regardless of who physically collected the rents.

 

“This was not an unjust enrichment case, but of compensating an injured party for losses directly flowing from the Appellant’s misconduct. The fact that the 2nd Respondent may have improperly retained possession does not absolve the Appellant of its independent liability for putting the 1st Respondent in this position in the first place.

“What makes this appeal particularly unmeritorious is that the Appellant seeks to benefit from its own clear wrongdoing. Having been found in contempt for violating the Court Order, and having admitted selling the property while aware of the injunction, in addition to having deprived the first Respondent of possession for years, the Appellant now asks this Court to excuse it from the financial consequences of its actions.

“Our legal system does not countenance such an outcome. The maxim ex turpi causa non oritur action, translates as no one should profit from their own wrongdoing,” Justice Sankey stated.

The case at the trial court, which forms the basis of the appeal, centres on the property located at 25, Probyn Road, Ikoyi, comprising ten flats and two penthouses, which was acquired by G. Cappa through a lease agreement with the National Electric Power Authority for a 25-year lease starting on January 1, 2001.

According to the courts, G. Cappa mortgaged the property to Fidelity Bank as security for a loan of $3 million. According to court document seen by LEADERSHIP, “Additionally, G. Cappa secured another loan with some of its properties in Ibadan, Oyo State. When these financial obligations fell due and G. Cappa failed to make payment, Fidelity Bank sold one of the properties in Ibadan.  This action led G. Cappa to file suit No. FHC/L/CS/957/2005 against Fidelity Bank concerning the Ibadan properties and the disputed property in this case at the Federal High Court in Lagos. On September 9, 2005, the Federal High Court granted an interim injunction, restraining Fidelity Bank from further interfering with, disposing of, or taking control of the property in dispute.”

Fidelity Bank was said to have appointed Hemaco Commercial Enterprises to sell the property on its behalf, and Hemaco proceeded to market the property. The court document further revealed that, “A purchase price of N350 million was said to have been agreed upon for the unexpired portion of G. Cappa’s 25-year lease from NEPA, and the sale was finalised in November 2005, with Sagecom paying through its financiers, First City Monument Bank (FCMB).

Subsequently, Sagecom was joined as a defendant in suit No. FHC/L/CS/957/2005 before the Federal High Court, where it counterclaimed against both Fidelity Bank and G. Cappa for possession and special damages.  On June 20, 2011, the Federal High Court ruled that the power of sale of the Appellant (the 1st Defendant) had indeed arisen and that the assignment of its interest in the disputed property was both regular and proper. However, the court declined jurisdiction over Sagecom’s counterclaim, transferring it to the High Court of Lagos State. To pursue the counterclaim transferred by the Federal High Court, Sagecom filed a Writ of Summons and Statement of Claim before the High Court of Lagos State, initiating the suit leading to this appeal against G. Cappa as the 1st Defendant and Fidelity Bank as the 2nd Defendant.

The case was resolved in its favour, and the Court of Appeal in Lagos also affirmed Justice Olabisi Akinlade’s judgement.’’

However, in a statement, Fidelity Bank claimed the actual amount payable is just N14 billion, citing outdated exchange rates from 2005. Fidelity Bank said it was willing to settle the obligation. According to the statement, “Unfortunately, there are significant ambiguities in the judgement resulting in difficulties in calculating the actual financial liability to the G.Cappa and the Bank which is about N14 billion from our computation based on the exchange rate as of 2005 when the incident and cause of action arose. “Consequently, the Bank has applied to the court for a clarification and inquiry into the proper interpretation of the judgment and the computation of the actual quantum properly and lawfully payable by G.Cappa and the Bank.

Meanwhile, the Central Bank of Nigeria, CBN, has reassured the public on banking sector stability.

In a statement signed by the apex bank’s acting director, Corporate Communications, Hakama Sidi Ali (Mrs.),the bank said, “The attention of the Central Bank of Nigeria (CBN) has been drawn to certain publications and social media reports containing misleading information regarding the operations of a regulated financial institution. The CBN wishes to categorically reassure the public, depositors, and stakeholders that the Nigerian banking sector remains resilient, safe, and sound. Like all other regulated institutions, the institution referenced in these reports is held to stringent regulatory requirements, and there is no cause for concern regarding the safety of depositors’ funds. “The Bank affirms that it continues to monitor all financial institutions under its regulatory purview and maintains robust frameworks for early warning signals and risk-based supervision. These mechanisms ensure that any emerging issues are promptly addressed to protect the integrity of the financial system. We urge the public to disregard sensational or unverified claims and rely solely on official channels for information about the financial system.

“The CBN remains dedicated to fostering a secure banking environment where depositors can be fully confident in the safety of their funds. It will continue to monitor and adapt strategies to safeguard the financial interests of all Nigerians and stakeholders in our financial system.”

–Leadership

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