The Court of Appeal in Lagos is set to hear Union Bank Plc’s appeal against a High Court judgment that found the bank guilty of selling a family’s property located at No. 6, Moore Road, Ikoyi, Lagos State, at a grossly undervalued price of N60 million.
The legal team representing Mrs. Olubunmi Ogunde, Yewande Ogunde, and others argues that the property would now be worth N13 billion if pre-judgment and pro-rated post-judgment interest were calculated over the relevant years.
The case, which initially began in 1999 but was amended by the claimants in 2017, involves a loan and mortgage matter. On May 31, 2024, the High Court ruled that the sale of the property by Union Bank was grossly undervalued and conducted in bad faith. The court awarded the claimants N112,050,000, excluding the N60 million already paid, as the difference in what should have been realized from the sale.
The court also ordered interest on the balance from 1998 until the judgment date at the prevailing CBN rate, and thereafter at a rate of 10% per annum until the judgment debt is fully paid.
Disagreeing with the High Court’s decision, Union Bank, represented by Funke Agbor SAN, has appealed the judgment, citing grounds related to fair hearing, improper evaluation, and miscarriage of justice. The bank argues that the evidence relied upon by the lower court does not support the family’s claims regarding the property’s value at the time of sale, and that the prices of similar properties in the vicinity justify the reasonableness of the sale price.
The Ogunde family, represented by Omotola Oni of Olaniwun Ajayi Chambers, opposes Union Bank’s request for a stay of execution pending the appeal. They argue that granting a stay would be unconscionable, as the family is entitled to the immediate benefit of their judgment.
They further contend that as of November 2024, the total pre-judgment interest due on the judgment sum, calculated in accordance with the applicable CBN rate since 1999 and on a compound interest basis, is N12,547,686,231.27, while the pro-rated post-judgment interest is N417,333,333.00.