Shoprite to pay $10m damages for breach of contract

A Lagos State High Court has awarded $10 million as damages against Shoprite Checkers (PTY) Limited and Retail Supermarkets Nigeria Limited, owners of Shoprite Stores, for what was deemed a breach of contract entered into with a firm, A.I.C. Limited.

Justice Lawal-Akapo who delivered the ruling, said there existed a contract between the claimant and the first defendant.

In a certified true copy of the judgment obtained by Daily Trust in Lagos, the judge held that the defendants were in a breach when they went behind, incorporated a company, established the outlet (Shoprite) in 2005 and was running the same without recourse to the claimant, the A.I.C. Limited.

The A.I. C Limited had in the suit No: LD/488/2010 asked the court to among other things declare that, by virtue of the agreement between the claimant and first defendant, the joint venture to be formed by the claimant and first defendant was entitled to exclusively operate and manage 1st defendant’s Shoprite brand in Nigeria and elsewhere in West Africa, except Ghana.

The claimant also sought “A declaration that the incorporation of the second defendant by the first defendant to operate the first defendant’s Shoprite brand in Nigeria is in breach of the agreement” between both parties.

The claimant also asked the court for payment of $2.2million and N13. 6 million as special damages suffered by the claimant as a result of the breach of agreement.

The defendants have appealed against the judgment, praying the appellate court to set aside the judgment of the lower court.