Breach Of Contract : Court Orders Medview Airline To pay Over $1. 8m, N100m
For breach of agreement occasioned by the lease of an aircraft engine by HAk-LAG-INC. to Medview Airline one the domestic airlines operating in the country, Justice Yelim Bogoro of the Federal High Court, Lagos on Friday ordered Medview Airline to pay over $1.8million as contained in the contractual agreement and another N100m as damages.
The over $ 1.8 million to be paid Medview Airline to pay to the plaintiff is the accrued or unpaid rent of $50,000 per month together with the agreed monthly interest on cumulative outstanding rent from the 1st of March 2019 till Friday 21st of July 2023 when the judgement was delivered and 3 percent thereafter until the total sum due and payable is fully liquidated.
In addition, the court also ordered Medview Airline to immediately return or release the lease aircraft engine number CFM56 – 3C1 with serial number 866226 in a serviceable condition to the owner, HAK -LAG INC. with the engine to be certified by an independent team of Engineers or a joint team of Engineers of both parties .
In the alternative to returning the aircraft engine in good and serviceable conditions Justice Yelim Bogoro ordered that the defendant, Medview Airline should pay the plaintiff, HAK-LAG INC. the sum of $1,200.00 ( one million two hundred thousand USD). being the valued market rate of the aircraft
Justice Yelim Bogoro also ordered the defendant to pay the sum of N100,000.000 as general damages for breach of contract .
Delivering judgement in the suit filed and argued by Barister O.A Fashugba and Sunday Chibido counsel for HAK-LAG INC, the trial Judge said there are several evidence that the plaintiff was served with the Motion on Notice filed by the plaintiff and hearing notices, but failed to appear, represented or filed a defense to the suit.
Justice Bogoro added that it is on record that the matter was adjourned for up to six times to enable the defendant file a defense or appear in court , but opted not to take the opportunity.
Consequently, she held that undefended claim in law is deemed as admission. of the facts as stated
The judge therefore ruled that the claims of the plaintiff as stated in the motion papers before the court succeed.
In it’s statement of claim, HAK -LAG INC. averred that by a lease agreement dated the 31st day of December, 2018 Medview took a lease of one of its aircraft engine for a period if twelve months to boosts it’s operations.
The commencement date of the agreement according to the plaintiff is 1st day of January,2019.
The plaintiff said that by clause 4.2 (b) of the lease agreement, , the monthly rent for the lease engine is the sum of $50,000 with 3 percent monthly interest chargeable on any cumulative sum outstanding which remains unpaid at the end of every month.
Claimant said that contrary to the lease agreement , the defendant made late payment of the agreed deposit of $100,000 being rent for the month of January 2019 and that it later failed to pay the rent for the month of February 2019.
It was further stated that the plaintiff caused a letter to be written through its lawyer to the defendant and the defendant in its reply stated the the engine was not fully utilised during the period.
HAG-LAG INC. added that consequent upon his expression of displeasure, the defendant in the month of May 2019 paid the sum of $40,975 as part payment for the month of February 2019.
The plaintiff added that since then, all efforts to see that Medview Airline performed it’s obligations under the lease agreement or return the leased engine in good conditions has proved abortive
