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Last Updated: Monday, November 15th, 2004 HOME | Previous Page
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Two firms claim N200m from FG for breach of contract
By Victor Efeizomor
Law Reporter,Lagos.
A Lagos based oil company, Baron Oil and Shipping Services Limited and a property development company, Strabene
Properties have taken the Federal Ministry of Housing and Urban Development to court over alleged breach of contract.
The plaintiffs are claiming N200 million as special and general damages against the defendants for alleged fraudulent
mis-representation and deceit, that Osborne phase II Ilubinrin, Lagos was suitable and approved for residential
development which happens to be false.
The plaintiffs claim that an agreement entered into between Baron Oil and the Federal Ministry of Housing was fundamentally
breached by the ministry.
The company averred that following the solicitations from the Federal Government, it (Baron Oil) applied for allocation
of a piece of land at Osborne phase 2, a reclaimed parcel of land obtained by sand filling the bank of the Lagos
Lagoon, almost directly opposite another housing estate called Dolphin Housing Scheme now owned and managed by
the Lagos State government.
The plaintiffs averred that Osborne Phase 2, was sub-divided into many plots of land and lease of 99 years, granted
to allotees including Baron Oil with the consent of the Federal Government contending that the Ministry of Housing
knew that the Osborne will constitute an obstruction to the flow of rain water or liquid waste to the Lagos Lagoon.
The Federal Government, according to Osborn Oil knew that there were surveys, plans or maps showing such obstructions
that Osborn will constitute nuisance but still when ahead to sell and lease it to the company to be used for residential
purposes.
Following the heavy rains during the period, some portions of Dolphin, a neighborhood estate, was flooded which
prompted the Lagos State Government to carry out demolition exercise to create outlet for the water to flow and
be discharged into the Lagoon and in the process, Osborn was affected.
The company averred that as a result of the destruction of the land at Osborne, it has lost land valued at N48m
and soil testing, survey architectural drawing and other expense valued at N42 million and consequently, asking
for 200 million claim being general and special damages against the Federal Ministry of Housing for fraudulent
misrepresentation.
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