In this post, we explained how to sue a company in Nigeria. Whether your question is, how to sue a bank? or how to sue a loan company? or any business organization in Nigeria? This post covers how to Sue a Company in Nigeria and Why Sue A Company and Who Can Sue on Behalf of a Company.
Business Organization Definition:
Business organization is an entity formed for the purpose of carrying on commercial enterprise. Such an organization is predicated on systems of law governing contract and exchange, property rights, and incorporation.
INTRODUCTION
An incorporated company has a separate entity distinct from the individuals who are shareholders and directors in control of the company’s operations. The procedure for how to sue a company is not far-fetched from the procedure for suing an ordinary person, because a company is also deemed as a legal personality with its own rights and privileges. There are several reasons for bringing an action in Court against a Company.
It could be as a result of a breach of contract, debt recovery, defective products, bad services, or injury to an individual or properties. In detailing the procedure to sue a company in Nigeria, it is trite to first of all state that an incorporated company has the capacity to sue and be sued because it has the power of a natural person. It can institute an action to enforce its legal rights in its corporate name and also defend in its corporate name when sued. A company may be liable in tort or breach of contract in respect of acts of its members or officers carried out on behalf of the company.
Read: Company Registration in Nigeria
How To Sue a Company in Nigeria.
Where a company is being sued for monetary claims, the first step is to send a written demand notice drafted by a Lawyer or law firm that is into Commercial Litigation to the company before an action can be brought against such a company. The demand notice usually explains the injuries suffered or the wrongs done by the complaint or particulars of any breach of contractual terms and the amount of compensation that the complainant or plaintiff is willing to collect. Such a letter may also be used to issue a warning to the company of the complainant’s intention of resorting to a court where the company refuses to comply with the demands in it. For an action to be instituted, there must be a valid legal cause of action.
This cause of action can be negligence suffered as a result of the company’s action or failure to act, breach of contract arising from an existing valid contract, employment discrimination arising from unlawful dismissal among others. A lawyer to weigh the scale of winning the suit must evaluate the cause of action before bringing an action in court; it should not be a frivolous matter based on emotions. Where demand notice has been served on the company and it refuses to comply, the complainant can institute an action in court for the grievances suffered. An action can be brought in the jurisdiction where the company operates its business.
If the company has an office in a state, it can be sued in that state. The complaining party filing processes in court through a lawyer institute an action. The processes may include a statement of claim, a list of witnesses to be relied on, witness statements on oath, and documents to be relied on during the trial of the case. These processes are further served on the Company effective by delivering the process in the company’s registered or corporate addresses or serving its directors or other principal officers of the company.
Read: Need a Legal Firm Service in Nigeria
Under the Nigerian law, no action may commence against a person or entity unless the party being sued has been duly served with a copy of the court’s processes detailing the case against him. When an action has been duly filed in court, a suit number and court will be assigned to the matter and such matter will be listed on the court’s cause list. Meanwhile, companies may prefer to settle matters that arise against it in an amicable way. In such a case, the alternative dispute resolution mechanism will be used to settle the matter. Mechanisms such as arbitration, mediation, reconciliation, or negotiation will be implemented for the timely settlement of the dispute.
Generally, the court that has jurisdiction over matters concerning companies as defendants is the federal high court. However, depending on the cause of action, some matters may be filed in the State High Court. Claimants must pay keen attention to this and seek legal advice in this regard. Where the matter is being taken to court, the court processes generally include:
- Writ of Summons/Originating Summons (Depending on the matter)
- Statement of Claim
- List of Witnesses
- Witnesses statement on Oath
- List of Documents to be relied on
- Affidavit of non-multiplicity
Which must all be served on the company upon filing at the Courts’ registry. One must note that service is fundamental to any lawsuit and can affect the entirety of a case. It is advised that legal counsel be sought in prosecuting a case against a company.
Read: Local Content/ NCDMB (NOGIC) Certificate
Why Sue A Company?
There are many reasons for suing a company. Here are some of the common reasons to sue a company:
- Because of a breach of contract
- As part of a debt recovery process
- For selling defective products or bad services
- Because of injury to an individual or properties
Who Can Sue on Behalf of a Company?
The directors of the company have the power to sue or allow the initiation of court proceedings on the company’s behalf because they direct and manage its affairs.
CONCLUSION.
Finally, and in addition to the above, a person looking to sue a company must pay attention to the issue of limitation period. Depending on the cause of action, the law (i.e., status of limitation) provides a period after which a claimant will be unable to bring an action against a defendant. The aim of this article is to provide a general overview of the topic.