Firm Sues Ecobank for Allegedly Refusing to Pay Agency Fees

A Lagos-based property firm, Jetland Property Limited, has dragged Ecobank Nigeria Limited to court, for allegedly refusing to pay the agreed agency fees of N21 million after the sale of the property belonging to the bank.

Jetland Property, in the suit filed on its behalf by Mr. Dipo Okpeseyi, SAN before a Lagos High Court, is asking the court to enter judgement in its favour, by awarding the sum of N21 million being 4% agreed agency fees, and another N10 million being cost of legal fees.

The Claimant is also seeking an order of the court, for award of interest on its agency fees of N21 million at 35% interest rate from August, 2017 until judgement is delivered, and thereafter, at 15% rate per annum on the judgement until final liquidation.

The statement of claim by the firm and its Managing Director, Mr. Jude Azekwoh stated that sometime in 2016, the bank engaged its services to find a buyer for its property situate at Plot 7, Block 10, Layi Yusuf Crescent Lekki Phase 1, Lagos.

The property firm claimed that it commenced marketing and advertising the property, after the bank instructed it through its then Acting Head, Ecobank Business Services (EBS), Mr. Mohammed Jalal, to facilitate the sale of the property by sourcing for prospective purchasers.

The Claimant said, in carrying out the Defendant's instructions, it deployed all efforts and resources in search of a buyer for the said property, as the custom of its business as an Estate Agent.

According the Claimant, the first offer of N500 million for the purchase of the said property by a prospective buyer which it secured, was rejected by the bank.

The firm said that, after several months of painstaking efforts and contacts with other Real Estate firms to find buyers as expected in its ordinary course of business, it got an offer from a prospective buyer through another Real Estate firm, Messrs Barin Epega & Co.

The Claimant further stated that, it introduced the new prospective buyer of the property (Punuka Investment Ltd) to the Defendant, adding that upon finding a purchaser for the Defendant's property, it immediately wrote a letter dated November 14, 2016 to the Defendant informing it of the prospective buyer and the consideration proposed in the sum of N525 million and of course, its agency fee of 5% of the purchase price of the said property.

The property firm stated that in response to its said letter, the bank being fully aware of its instructions engaging it to find

a buyer for its property, the bank through its letter dated November 28, 2016 strangely stated its intention not to pay agency fees as agreed, despite the firm's efforts to secure the buyer.

The Claimant said that upon the receipt of the defendant's letter of November 28, 2016, it immediately countered the Defendant's position via a letter dated November 29, 2016, with a full disclosure and detailed explanation on how it got the prospective buyer, Punuka Investment Ltd., through another Real Estate firm, Messrs Barin Epega & Co.

The Claimant further averred that by its letter of November 29, 2016, it affirmed its entitlement to its agency fee from the Defendant, and reviewed the agency fee from 5% to 4% due to the symbolic relationship it has with the bank.

The Claimant stated that the bank neither declined nor rejected its counter-offer of 4% agency fee towards the eventual purchase of the property, and based on this, it continued its efforts to ensure the successful sale of the property.

According to the Claimant, after its letter dated November 29, 2016 for 4% offer, the Defendant issued further instructions and continued to engage its services as its agent and broker in the transaction, until the eventual sale of the property.

To prove that the bank still continued to engage its services after it proposed 4% agency fees, the Claimant said that the Defendant through its letter dated December 7, 2016, requested it to obtain an offer letter from the purchaser's agent, and it promptly complied by carrying out the instruction.

“Via the same letter of 7th December, 2016, the Defendant requested the Claimant to obtain a confirmation that the purchaser is the actual buyer of the property at the proposed purchase price, since it was a Central Bank of Nigeria requirement. This instruction was promptly complied with.

“Via a letter to the Claimant dated 15th December, 2016, the Defendant confirmed closure of the transaction with its final offer of N525 million plus VAT at N26 million, totalling the sum of N551,250,000 only.

“The Claimant was actively involved in getting the documentation together for the approval of the Central Bank of Nigeria, because the transaction required Central Bank's approval.

“The Claimant vigorously deployed professional resources, contacts and goodwill, to secure a purchaser for the said property after many prospective purchasers had come and gone, and to ensure that the transaction was successfully consummated", the property firm claimed.

The Claimant stated that, it was surprised that after the completion of the transaction, the bank has bluntly refused to pay the agreed 4% agency fees, inspite of its several letters requesting for the fees.

Jetland Property claimed that, it even wrote a petition to the Central Bank of Nigeria to intervene in the matter, all to no avail, as the bank remained recalcitrant.

The firm said that the untoward practice on the part of the bank, led it to engage the services of its lawyer, Messrs Dipo Okpeseyi, SAN & Co, to help recover its 4% agency fees which ought have been paid since July this year.

The Claimants however, are claiming before the court the sum of N31 million at 35% interest rate per annum being the total money from its 4% agency fees of N21 million and N10 million being legal fees.

No date has been fixed for hearing.