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Appeal Court Sets Aside Judgment on Expulsion of Onanuga, others, from Ikoyi Club 1938

Appeal Court Sets Aside Judgment on Expulsion of Onanuga, others, from Ikoyi Club 1938

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…Orders reinstatement
By Demola Abimboye
The Court of Appeal, Lagos Division, has set aside the ruling of a Federal High Court, Lagos, which affirmed the expulsion of Dr Olufemi Onanuga as a member of Ikoyi Club 1938.
The court also ordered the reinstatement of Onanuga as a bonafide member of the prestigious club.
Dissatisfied with the ruling of the lower court in the suit he instituted against the Trustees of the Ikoyi Club 1938, Onanuga appealed and urged the appellate court to set it aside.
His counsel, Dotun Oduwobi, challenged the judgment of Justice Ibrahim Buba of the Federal High Court who in 2013 dismissed the suit he had filed against the Club. The Plaintiff, who claimed to have served the Club in various capacities, contended that his expulsion from the Club was wrong, on the ground that it is not permitted by law to act upon or enforce its Constitution of years 2009 and 2010, which were neither approved nor registered with the Corporate Affair Commission (CAC) as prescribed by Section 681 and 683 of the Companies and Allied Matters Act (CAMA), 1990.
Onanuga prayed the court to declare that by the provisions of Section 681 and 683 of CAMA, 1990, the Constitution of Ikoyi Club 1938 made in years 2009 and 2010, were null and void and of no effect whatsoever, having not been approved and registered by CAC.
Consequently, he urged the court to declare his suspension and eventual expulsion from the Club by the Defendant exercising disciplinary powers under the non-existent Constitution of Ikoyi Club 1938 of 2010 were unlawful, unconstitutional and null and void.
He had also sought an order of the court setting aside all disciplinary actions taken against him by the Incorporated Trustees of the Club directly or through its ad hoc committee under the said Constitution of the Club, as detailed in the Trustees report on diverse investigation panels/trustees ad hoc disciplinary committee dated July 2011.
Also, the plaintiff while asking for the sum of N10 million against the Defendant as general damages for inconveniences and loss of reputation, urged the court to order that he remains a bonafide member of the Club, and that he is entitled to full membership benefits.
But in his January 2013 judgment, Justice Buba dismissed the Plaintiff’s claim in its entirety, for lacking in merit.
Displeased, Onanuga appealed, and asked the Appellate court to reverse the ruling and grant all the reliefs sought by him at the trial court.
He argued that the lower court acted in error and thereby caused him a grave miscarriage of justice when it failed to determine and pronounce on the main issues properly raised but instead based its judgment on matters not raised before it.
He told the appellate court that the main matter before the trial court revolved around the question whether the Defendant who was not incorporated of CAMA, could competently act on the basis of an unapproved and unregistered Constitution of the Club of which they are Trustees.
His Counsel further argued that the trial Judge failed in his duty to adjudicate the case before him based on the issues and evidence presented by the parties, and resolving all the issues properly raised by abandoning the question of law he was asked to determine.
On the other hand, counsel for Respondent (Trustees) argued that, the principle of law to the effect that a trial Judge must address all issues brought before it, admits of exceptions, such as where a determination of the issue would result in a nullity, which the issue before the lower court falls under, hence, the trial judge rightly held that a determination of the question whether the Respondent could rely on its Constitutions of 2009 and 2010, would not affect the outcome of the case, because of the principle of law to the effect that declaratory reliefs are equitable, and the hands of the Appellant were not clean.
The Clubs counsel argued that, the court ought not to be used as an instrument of fraud, and that since both Constitutions of 2009 and 2010 contain similar provisions outlawing fraud, and creating Disciplinary Committee, the disciplinary action taken against the Appellant based on the alleged fraud he committed, ought to stand.
In a unanimous decision, the three-man panel of Justices of the Court of Appeal, comprising Justice Joseph Ikyegh, Justice Ugochukwu Ogakwu, and Justice Jamilu Tukur, held that the disciplinary actions of the Club with regard to the Appellant, having arisen from the 2009 and 2010 Constitutions which were enacted contrary to the express provisions of statute, do not exist in law, and cannot be given any legal backing.
The Appellate Court Justices while agreeing with Appellant’s counsel that the trial Judge did not carry out his functions as he ought to, held that it is not for a trial court to make a case for Defendants, as such constitutes descending into the arena, which the law frowns at, because it serves as a form of erosion of the right to fair hearing from the viewpoint of avoidance of bias and impartiality.
The Court held that:
“With regard to the application of equitable principles, firstly, equity follows the law and where equity and law are in conflict, the law would prevail, and secondly, it has not been established that the Appellant’s hands are ‘not clean’, thus, that cannot be a basis for denying request of the Appellant.
“The Appellant by his seeming agreement to the 2009 and 2010 Constitutions cannot operate to cloak them with legality. In view of this, it is null and void, and every action premised on them cannot be lent credence by a court of law.
“The issues raised by the Appellant, are therefore, resolved in his favour, and the appeal succeeds. The judgment of the lower court delivered on 22nd of January, 2013 in Suit No. FHC/L/CS/1004/2012 is hereby set aside.”
The court also awarded the sum of N100,000 against the Club in favour of the Appellant, for the cost of prosecuting the Appeal.

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About Demola Abimboye