In a landmark judgment, a High Court in Port Harcourt, Nigeria, has struck out Macobarb’s N5.74bn contract suit against Nigeria Liquefied Natural Gas (NLNG). The presiding judge, Justice Nwogu, in his judgment, held that the NLNG did not breach the contract and that no unlawful denial of payments occurred.
The judge proclaimed that the contract executed by Macobarb did not qualify as “work executed” under the contract without NLNG’s formal verification and approval. This judgment signified that a job is only considered done when the contract owner confirms a particular job given to the contractor as satisfactorily completed.
The presiding judge, Justice Nwogu, further clarified that the “contract holder” nominated by NLNG functioned merely as a day-to-day supervisor and not the sole authority for contract execution, and that any authorised NLNG official had the right to terminate the contract.
Given the judgment on Macobarb’s claims concerning the withholding of payments and project delays, the court ruled that the contract did not provide for such payments and that the NLNG could not be held responsible for the delays.
The court also disclosed that the financial troubles experienced by the contractor during contract execution were due to the mishandling of bank loans rather than any breach by the NLNG.
The presiding judge, Justice Nwogu, sustained nearly all the arguments presented by NLNG, while dismissing the contractor’s claims in their entirety and apportioning a strong reprimand against Macobarb’s case presentation.
