Doubtful,Shaky SunTrust Bank Faces Multi-Million Dollar Lawsuit Over Contract Dispute

An International Offshore Oilfield Support and Solutions company which operates in the Oil and Gas industry, maintains branches in Ghana,Cyprus, Guyana and Mauritius and works with international partners in Oil industry, CARACAL OIL & GAS SERVICES LIMITED has slammed $1,140,000 on SUNTRUST BANK NIGERIA LIMITED over an alleged breach of contract.

Joined as co-defendant in the ensuing legal hostility is the Central bank of Nigeria CBN.

In a statement of claim accompanied by the written statement on oath of the Chief compliance officer of the company Mr. David Ibukun and filed before a Federal high court in Lagos by a Lagos lawyer Mrs Soibi Ovia,the deponent avers that the
Plaintiff CARACAL OIL & GAS SERVICES LIMITED is one of the customers of Suntrust bank and maintains both naira and domiciliary accounts with the bank which the Plaintiff has fully funded and maintained in good standing over the years up until the 20th day of January 2023 when her account was debited pursuant to the Irrevocable Standing Order ISPO.
On or about the 10th day of January 2023 the company, executed an irrevocable Standing Payment Order ISPO in favour of one of her international lending partners.
The Irrevocable Standing Payment Order ISPO was executed in respect to its USD account domiciled with the bank
According to the terms of the ISPO, the Bank was mandated to credit its International lending partner “Trade Credebt’s” account domiciled with Barclays Bank Ireland Plc with the balance standing to the credit of the company as at the 25th day of every month or next working day, if same falls on a weekend.
As at 20th January 2023, the account was credited with the sum of $256,670.00 (Two Hundred and Fifty-Six Thousand, Six Hundred and Seventy Dollars) with the narration as: “INWARD TELEX TRANSFER: SUPPLY OF VESSEL/CARACAL OILB/ONNPC/FIRST” and subsequently, the account was debited on 25th January 2023 to the tune of $383, 290.12 (Three Hundred and Eighty-Three Thousand, Two Hundred and Ninety Dollars, Twelve Cents).
The sum of $383, 290.12 (Three Hundred and Eighty-Three Thousand, Two Hundred and Ninety Dollars, Twelve Cents) debited from the account, was to trigger the release of the sum of $3,000,000.00 (Three Million United States Dollars) and finance the mobilization to Nigeria of the company’s PSV Helios 289 Vessel situate at Carena Shipyard in Abidjan, Cote d’Ivoire; as well as a number of the ,company’s projects, amongst others; to the knowledge of the bank
Subsequently, the bank on the 25th day of January 2023 issued a Telex to the company ; supposedly evidencing the alleged transfer of the sum of $383, 290.12(Three Hundred and Eighty-Three Thousand, Two Hundred and Ninety Doliars,Twelve Cents) to its Trade Credebt’s account domiciled with Barclays Bank Ireland Plc.

Ninety Dollars, Twelve Cents) and $523,793.76 (Five Hundred and Twenty-Three Thousand, Seven Hundred and Ninety-Three Dollars,Seventy-Six Cents), respectively, the Company was constrained to instruct her Solicitors to institute this action before the Court and had to incur costs with respect to her Solicitors’ fees and other attendant costs, in addition to other recurring costs caused by the bank’s negligence.
Whereof the Company,’s claims against the Defendants jointly and severally are as follows:
A declaration that the failure of the Suntrust bank to credit the designated account of Trade Credebt Limited, the Company’s lending partner with the sum of $3S3, 290.12 (Three Hundred and Eighty-Three Thousand, Two Hundred and Ninety Dollars, Twelve Cents). in line with the Irrevocable Standing Payment Order dated 10th January 2023, despite having debited the Company’s account constitutes a breach of contract between the Company and the bank.
A declaration that the detention by the bank of the sum of $523,793.76 (Five Hundred and Twenty-Three Thousand, Seven Hundred and Ninety-Three Dollars, Seventy-Six Cents) standing to the Credit of the Company in her account from 27th January 2023 till 27th March 2023,constitutes a breach of contract between the company and the bank.
A declaration that the detention by the bank of the sum of and$523,793.76 standing to the Credit of the Company in her account from 27th January 2023 till 27March 2023, constitutes a breach of fiduciary duty owed to the Company by the bank.
An order directing the bank to pay the Company the sum of $1,140,000(One Million, One Hundred and Forty Thousand Dollars) being special and aggravated damages for economic loss, loss of business and reputational damage suffered by the Company as a result of the breach of contract, fiduciary duty and neglect of the bank,respectively.
An order compelling the CBN in exercise of its regulatory and supervisory functions over the bank to impose penalties and sanctions on the Suntrust bank for the unjustified and illegal detention of the Company’s $383,290.12 (Three Hundred and Eighty-Three Thousand, Two Hundred and Ninety Dollars, Twelve Cents); without any reasonable cause or lawful justification.
The sum of N5,000,000 (Five Million Naira) only in favour of the Company and against the bank, being cost of instituting this action.
Pre-Judgement interest on the sum of $1,140,000 (One Million, One Hundred and Forty Thousand Dollars) at the rate of 20% per annum; from the 25th day of January 2023 until Judgement is delivered.
Post Judgment interest at the rate of 20% per annum from the date Judgement is delivered until final liquidation.