Lagos Court Dismisses $250,000 Loan Suit Against Okoya and Firm as Statute-Barred
The Lagos State High Court, sitting in the Yaba/Surulere Judicial Division, has struck out a $250,000 loan recovery lawsuit filed by Dajo Oil Nigeria Limited against prominent businessman Chief Razak Akanni Okoya and Rao Investment Property Company Limited. The court upheld a preliminary objection challenging the competence of the action, ruling that it lacked jurisdiction to entertain the matter.
Ruling on Statute of Limitations
Justice Olufunke Sule-Amzat delivered the ruling in the case marked LD/S226GCM/2021, holding that the action, filed in 2021, was statute-barred under the limitation law of Lagos State. Consequently, the court struck out all claims against the first and second defendants, effectively dismissing the suit.
Grounds for Preliminary Objection
The preliminary objection was filed by the second defendant, Chief Okoya, who urged the court to dismiss the action and grant any further orders deemed appropriate. The applicant argued several key points:
- The originating processes filed by the claimant failed to disclose any interaction, agreement, communication, authorization, or transaction between Dajo Oil Nigeria Limited and the defendants.
- There was no link connecting Chief Okoya or Rao Investment Property Company to the claims brought by the claimant.
- The claimant failed to disclose any reasonable cause of action against the defendants.
- The action was statute-barred, having been instituted more than 12 years after the alleged cause of action arose.
- The claimant lacked locus standi to institute and prosecute the suit against the defendants.
Previous Legal History
The defendants informed the court that the claimant had previously filed a similar action before the Lagos High Court under suit marked LD/1361/2007, seeking identical reliefs. That earlier suit was struck out on July 15, 2008, by Justice B.A. Oke-Lawal for want of diligent prosecution.
The present suit, filed in 2021, came approximately 13 years after the earlier case was struck out, placing it squarely within the scope of the limitation law. Based on these arguments, the applicant described the suit as frivolous and urged the court to dismiss it with substantial costs.
Court's Final Decision
After considering all submissions, Justice Sule-Amzat upheld the preliminary objection, ruling that the court lacked jurisdiction to entertain the matter. The suit was consequently struck out, bringing the legal proceedings to a close. This ruling underscores the importance of adhering to statutory limitation periods in commercial litigation within Lagos State.
