A construction company, Ravega Construction and Project Management Limited, has dragged Standard Alliance Insurance Plc before a Lagos State High Court in Igbosere over an alleged indebtedness of N47m.
The construction company claimed that the N47m was the outstanding sum of the fee payable to it for constructing the defendant’s corporate head office in Lekki, Lagos.
The construction company claimed to have been engaged by the insurance company for the said construction in April 2004.
It claimed to have mobilised and deployed all its manpower and executed the contract diligently and professionally in line with the mandate given to it by the insurance company.
The claimant, however, alleged that while it had since completed and handed over the project to the insurance company, which was already being used, it was only paid a fraction of the contract sum.
The claimant said that in its bid to recover the sizeable fraction of the contract sum, which the insurance company had yet to pay about nine years after, it wrote a letter dated February 15, 2013 demanding a payment plan.
The claimant claimed that upon receiving its letter, the insurance company wrote back to it on March 5, 2015, requesting “the details and specification of the computation” of the alleged debt.
It averred that it replied the defendant vide a letter dated March 11, 2013, supplying the requested details.
“The claimant avers that following the latter of March 11, 2013, the defendant wrote the claimant, admitting the indebtedness but requested to be allowed to pay the outstanding sum in 10 monthly installments in the sum of N7,485,730.40, commencing from April 2013.
“The claimant avers that it accepted the offer of installment payment vide a letter dated March 19, 2013.
“The defendant has failed, refused and or neglected to abide by the monthly installment payment it suggested and agreed to by the claimant,” the claimant stated in the statement of claims filed through its lawyer, Mr. Dele Adeogun.
Adeogun claimed that that the failure of Standard Alliance Insurance Plc to offset its outstanding indebtedness had put his client under pressure from several sub-contractors engaged by the claimant to execute the project.
According to Adeogun, the sub-contractors had not only been demanding their payment but they were also threatening legal actions against Ravega Construction and Project Management Limited.
“Because of the failure of the defendant to fulfill its contractual obligation to the claimant, the claimant has suffered irreparable damage to its business reputation among the sub-contractors in the construction industry,” the claimant said.
The construction company is urging the court to compel Standard Alliance Insurance Plc to pay it N47m with an interest of 18 per cent from March 11, 2013 and four per cent from the judgment day till the final liquidation of the alleged debt.
The construction company is also seeking general damages against the insurance company in the sum of N5m as well as a separate N1m as the cost of filing the sum.