By Anthony Ochela, Abuja
The Supreme Court Abuja on Monday adjourned an appeal filed by former employees of Zapata Marine Services Nigeria (ZMSN) Limited against Tidex Nigeria Ltd to February 5, 2029.
The appeal is challenging judgments of two lower courts declining to grant an order to compel Tidex (respondent in the appeal) to pay the sum of $56 million profit, after tax, being sums declared by Zapata before the company was taken over by the former.
The Apex court led by Justice Uwani Musa Abba Aji took the decision after listening to arguments and counter arguments by counsels to both parties.
Counsel to appellants, Onyinye Okwonko had earlier told the court that the matter was for hearing as the respondents were properly served.
“appeal is for hearing pursuant to order of the court granting leave for appeal to be heard.”
Objecting, Counsel for the respondents, O. J. Aboje said the service could not have been properly done as it was taken to their Lagos office when he was at their Warri office.
“We were only served on 1 June, we were not aware . It was only when we were tracing that we discovered that it was here.”
The Apex court advised the parties to do proper house cleaning and subsequently adjourned to February 5 for hearing of the appeal .
The appeal marked SC/1336/2018 the Supreme Court had earlier ruled on the protracted suit by former employees of Zapata Marine Services Nigeria (ZMSN) Limited who are seeking $56 million payment by the defunct company’s new owners, Tidex Nigeria Ltd.
They had approached the apex court through their lawyer, Mr. Norrison Quakers SAN, FCArb, to challenge judgments of two lower courts declining to grant an order to compel Tidex (respondent in the appeal) to pay the sum of $56 million profit, after tax, being sums declared by Zapata before the company was taken over by the former.
The suit was initiated before the National Industrial Court (NIC) in 1998 when the appellants, as former workers of Zapata, sought an order to compel the respondent to pay $56 million profit, after tax, being sums declared by their former employer before the company was taken over by the respondent. The $56 million claim is 10 per cent of the total profit of $560 million declared by their former employers.
It is the appellants’ case that they had entered into an agreement with Zapata to open a Worker’s Trust Fund, which would entitle employees who had stayed up to 30 years with it to benefit from 10 per cent of profits declared by the company, which would also apply in the event of winding up of the firm, which eventually occurred when the respondent took over.
The appellants have, therefore, accused the respondent of withholding the $56m due to them from the trust fund created for the benefit of the former employees of Zapata before its merger with Tidex. The appellants had prayed the NIC to, among other reliefs, declare that by virtue of the documentary evidence placed before the court, there was in existence a Zapata Marine Workers Trust Fund which has been redeemed by the respondent upon taking over assets and liabilities belonging to of ZMSN Limited, as opposed to Zapata Marine Employees Shares created under a 1978 Trust.
Tidex, on the other hand, denied the existence of any trust fund and contended that the suit was speculative. Specifically, the director of Tidex Nigeria Ltd, one Ade Williams deposed to its counter- affidavit, claiming that the respondent had at no time taken over the management, assets or liabilities of ZMSN. He further said that the merger which took place between the parent companies in the USA, had no effect on their subsidiaries in Nigeria.
NIC, had, in a decision delivered by Justice B. Adeyemo (presiding), Justice Benedict Kanyip and Justice V.N Okobi, dismissed the appellants’ claims. An application for leave to appeal the decision of the NIC was equally declined at the material time on grounds that no appeal could then lay from the court in respect of labour-related matters. The Court of Appeal also dismissed the appeal filed by the appellants on grounds of fair hearing.
Despite serving the appellants’ brief of argument at the apex court on Tidex on November 9, 2019, the latter failed to file a Respondent’s Brief of Argument.
Consequently, the workers obtained an order for the appeal to be heard on their (appellants’) brief alone on February 27, 2023.
