FINANCE

Swedish company sues Heritage bank over N156m letter of credit

&NewLine;<figure class&equals;"wp-block-image size-large"><img src&equals;"https&colon;&sol;&sol;openlife&period;ng&sol;wp-content&sol;uploads&sol;2020&sol;01&sol;Ifie&period;jpg" alt&equals;"" class&equals;"wp-image-2300"&sol;><&sol;figure>&NewLine;&NewLine;&NewLine;&NewLine;<p> In a bid to seek redress in a breach of contract business&comma; a Swedish company FSA FORTEX AB has dragged Heritage bank Plc before a Federal high court sitting in Lagos south west Nigeria&comma; claiming the sum of N156&comma;232&comma;011&period;   Joined as co-defendant in the ensuing legal hostility is a Nigerian company OFOLIX INTERNATIONAL LIMITED&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; &nbsp&semi;According&NewLine;to&nbsp&semi; a statement of claim accompanied by witness statement on oath of&NewLine;Executive Director of the Swedish company Mr&period; Jorgen Ohlander&comma;&nbsp&semi;filed&NewLine;before the court by a Lagos lawyer&comma; Barrister Victor Ibharalu&comma; the deponent&NewLine;alleged that his company manufactured and supplied its products dual purpose&NewLine;writing&sol;printing papers to Ofolix International limited in Nigeria&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; &nbsp&semi;Before the&NewLine;dual papers were supplied to the company&comma; the company provided three separate&NewLine;letters of credits which were opened with Heritage bank Plc&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; Mr&period; Ohlander&NewLine;averred further that the said letter of credit opened by the Nigerian company&NewLine;were meant to be solely financed by the company for the purpose of the Swedish&NewLine;company&&num;8217&semi;s products&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; &nbsp&semi; Over the&NewLine;years and following several meetings with the defendants&comma; Ofolix made some&NewLine;payments separately and at different times on the letter of credit but for&NewLine;reasons unknown to the plaintiff Heritage bank has refused to fully meet its&NewLine;obligations owed the Swedish company&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; &nbsp&semi;Meanwhile&comma; as&NewLine;time went on&comma; the Nigerian company equally made some direct cash remittances to&NewLine;the Swedish company leaving an outstanding sum of N156&comma;232&comma;011&period;which has&NewLine;remained unpaid till date&comma; despite the fact that&comma; in a letter written to the&NewLine;Nigerian company by Heritage bank&comma; the bank acknowledged the full discharge of&NewLine;the Nigerian company obligations under the said letter of credit&period;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>&nbsp&semi; &nbsp&semi; &nbsp&semi; The&NewLine;Swedish Director alleged further that his company&nbsp&semi; has made several&NewLine;demands and entreaties on Heritage bank to fulfill its own obligations owed to&NewLine;it but the &nbsp&semi;bank has refused and&NewLine;neglected to do so till date&period;&nbsp&semi;<&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>      After endless waiting and obvious frustration&comma; his company instructed his solicitors V&period; E&period; Ibharalu and company to demand and received the said outstanding sum  of N156&comma;232&comma;011 on the letter of credit&period;   The plaintiff&&num;8217&semi; Solicitors wrote a letter to Heritage bank to demand and receive the said outstanding sum which the bank refused and neglected to response to till date&period; <&sol;p>&NewLine;&NewLine;&NewLine;&NewLine;<p>     Mr&period; Ohlander states that the defendants are possibly exploiting the plaintiff &&num;8216&semi;s helpless position in the matter since both the goods and the money are in the possession of the defendants&period;  The plaintiff therefore claims against the defendants jointly and severally as follows &colon;  The sum of N156&comma;232&comma;011 being the outstanding balance on the letters of credit     Interest on the said sum at the rate of 21&percnt; per annum until final determination of the suit and thereafter at  6&percnt; per annum until the final liquidation of the debt&period;<&sol;p>&NewLine;

Openlife Reporter

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