A Delta High Court sitting in Warri has awarded N20 million in favour of Tatacoms Integrated, an MTN Connect Store, against MTN for withdrawing its contract without due process.
TATACOM had dragged MTN to court for unilaterally terminating its contract but MTN in its defense accused its dealer of not remitting money as contractually agreed.
MTN also accused TATACOM of failure to manage the store as agreed, and of carrying out an unauthorized SIM swap on the line of Governor Emmanuel Uduaghan.
TATACOM argued that MTN did institute a panel to investigate alleged wrongdoing on its part but goofed by not allowing it to present its defence to the panel.
Trial judge, Justice C. Achilefu, in her judgment, said: “On the issue of the defendant’s displeasure on how the connect store was being operated, the claimant’s averment that it was flood that destroyed most of the document, was not also investigated by MTN.
“I find as a fact that the defendant complained of certain breach of the agreement between defendant and the claimant, the claimant also proffered reasons for the breaches, remedied some of the breaches and the remedies proffered by the claimant were not investigated by the defendant and also the claimant was not given a fair trial by the key internal stakeholders. The key internal stakeholders on their own tried and decided the case of the claimant without his participation. It is my view that dispute arose between the claimant and the defendant, immediately the claimant alleged that the breach in lodgment of money was caused by Union Bank.
“On the issue of whether claimant is entitled to the relief claimed, the law is that the claimant must prove that it was the action of the defendant that led to the loss for which, he is seeking recompense. Failure to link the act of the defendant conclusively to the loss for which damages is being claimed can only lead to a dismissal of the claim for damages.
“The award of damages is purely within the precinct of the trial court. The power to award damages by the trial court is exercised in the circumstances of a judicious estimation of the loss to the victim once a breach of contract has been established.
“The defendant argued in his evidence before court that their contractors were being paid commission according to their performance. The commission the claimant also claimed he received monthly was not denied by the defendant. From the evidence of both the claimant and defendant, the defendant performed his part of the agreement until the defendant terminated the contract between the claimant and the defendant.
“In the case before me, considering the fact that the issue of unutilized transaction commission was not within the contemplation of the parties that the claimant as a result of the termination of the contract entered between the claimant and the defendant which resulted in the loss of commission that would have accrued to the claimant for the remaining period of the five years contract by the claimant is entitled to damages which is assessed at N20 million.
“In accordance with Order 35 Rule 7 of the High Court of Delta State (Civil Procedure) Rules 2009, I hereby order an interest at the rate of 10 percent per annum to be paid on the entire judgment debt commencing from the date of this judgment.”