Shoprite faces N153m suit over alleged breach of contract

POPULAR stockist of consumer goods, retail supermarkets Nigeria Limited trading as Shoprite, has been sued over alleged breach of contract.

The plaintiffs, Iceland Resources International Limited and Provita Vitafoods Nigeria Limited in suit LD/ ADR/ 3257/ 2020 filed at Lagos State High Court, are demanding sum of N153, 217,063.15 from the defendant for alleged breach of contract and damages.

The plaintiffs are sister companies registered as suppliers of different edible commodities on demand by the defendant and the agreement between parties allowed the defendant to enjoy a credit facility in which the plaintiffs would supply the defendant’s request and payments are made to the plaintiffs after delivery.

In the suit filed by the plaintiffs’ counsel, Mrs Funmi Falana, they contended that in view of the existing contractual relationship between parties, the defendant’s refusal and failure to accept goods ordered and imported for its exclusive use violates the express terms of the contract between the parties.

The plaintiffs said that the parties entered into contractual relationship in the last quarter of year 2018 and that the goods, which were ordered for, and on behalf of the defendant on its request were at the point of being shipped to Nigeria when the claimant, without any notice, terminated the contract between the parties via a letter dated September 18, 2019.

The plaintiffs through their representatives approached the defendant to know the reason for the termination of the contract with a view to resolving the matter amicably, but no reason was given by the defendant.

“Edible goods ordered and imported for the exclusive use of the defendant include SADAFCO Ice- cream, OKF brand drinks and Tirma Chocolates strictly on request,” the plaintiffs said.

Apart from the defendant’s alleged refusal to pay the claimants for the goods it requested and ordered for its exclusive use, the plaintiffs also argued that the defendant refused to pay them for developing its own brand of Ice- cream, “Spoonfulls” which include research, and development.

According to the plaintiffs, other issues undertaken for the defendants include brand trademarks, NADFAC registration and approval, and label design as requested by Shoprite.

The plaintiffs therefore prayed the court to compel the defendant to pay them the sum of N153 million over alleged sundry breaches of the express terms of contract between the parties and damages that flow from such breaches.