Appeal Court Grants Leave to Appeal Premises Closure Order
The Court of Appeal in Lagos has granted Coscharis Motors Limited leave to appeal against a High Court judgment that ordered the closure of its business premises over a dispute involving a Range Rover vehicle. The appellate court's decision, delivered on July 24, 2026, provides the automobile company with an opportunity to challenge the earlier ruling that had significant implications for its operations.
Details of the Dispute
The case stems from a disagreement between Coscharis Motors and a customer, who had purchased a Range Rover from the company. The customer alleged that the vehicle developed faults shortly after purchase and that Coscharis failed to rectify the issues, leading to a legal battle. In a previous ruling, a Lagos State High Court ordered the closure of Coscharis' business premises until the company complied with certain directives, including the replacement of the vehicle or a refund. Coscharis subsequently sought leave to appeal, arguing that the closure order was excessive and caused undue hardship.
Court Ruling
Justice O. A. Oke of the Court of Appeal, in a ruling on the motion, held that Coscharis had demonstrated arguable grounds for appeal. The court therefore granted leave to appeal and directed that the appeal be heard on its merits. The judge also ordered that the status quo be maintained pending the determination of the appeal, meaning the closure order remains in effect for now but Coscharis can pursue its challenge.
Impact on Coscharis Operations
The closure order had forced Coscharis to halt operations at its premises, affecting sales, service, and administrative functions. According to a statement from the company, the closure resulted in significant financial losses, with daily revenues dropping by an estimated 70% during the period. Coscharis' counsel, Mr. Babatunde Fashola, expressed satisfaction with the appeal court's decision, stating that the company looks forward to presenting its case fully. “We are confident that the appeal will demonstrate that the closure order was not justified and that our client acted in good faith throughout the transaction,” Fashola said.
Customer's Position
The customer, represented by Chief Mike Ozekhome, has maintained that Coscharis failed to honor its warranty obligations. Ozekhome argued that the closure order was necessary to compel compliance. He noted that the customer had been left without a functioning vehicle for over six months and that Coscharis' conduct was unacceptable. The appeal is expected to be heard within the next three months.
Broader Implications
Legal analysts have noted that the case could set a precedent for consumer protection in Nigeria, particularly regarding the enforcement of warranty claims against major automobile dealers. The court's decision to grant leave to appeal underscores the importance of allowing parties to challenge orders that may have severe commercial consequences. The case has also drawn attention to the balance between consumer rights and business interests in the Nigerian automotive sector.
