Delay in Terminal Benefits: Court Awards N2m Cost Against BUA International
Hon. Justice Sanda Yelwa of the Lagos Judicial Division of the National Industrial Court has ordered BUA International Limited to pay Mr Chinedu the sum of Two Million Naira costs of action following the payment of Chinedu’s terminal benefits by the firm after litigation had commenced. The Court held that the main aim of cost is to indemnify the successful party for her out-of-pocket expenses and be compensated for the true and fair expenses of the litigation taking the facts of each case into consideration. From facts, the claimant- Mr. Chinedu had submitted that upon his resignation, BUA International Limited refused to compute his terminal benefits despite several demands. Mr. Chinedu averred further after the suit had commenced, BUA International Limited paid his retirement benefits and refused to pay the interest accruing on the principal sum, as well as the sum of Two Million Naira paid to his attorney in pursuit of the case. However, the Defendant- BUA International Limited did not enter any appearance and likewise never defended the case despite being served. In addition, Mr Chinedu’s counsel, Samson Okeh Esq argued that BUA International Limited’s act of undue delay in the computation and payment of his client terminal benefits for a period of 2years after tendering his resignation which has necessitated an accruing interest of 21% from January, 2023 till judgment sum is fully liquidated is justifiable and urged the Court to grant the reliefs sought. In a well-considered judgment, the Presiding Judge, Justice Sanda Yelwa reiterated that costs are not meant to be a bonus to the successful party or serve as punishment against the losing party, and the main aim of cost is to indemnify the successful party for her out of pocket expenses and be compensated for the true and fair expenses of the litigation taking the facts of each case into consideration. The Court held satisfactorily that costs claimed by Mr. Chinedu specifically pleaded and strictly proved by credible evidence in the sum of N2,000,000.00 are grantable. However, the court refused the claim for a 21% judgment sum for the dearth of proof.
