Redundancy: Court Awards Damages Against IGI

The Abuja division of the National Industrial Court (NICN) has ordered an Insurance giant, Industrial and General Insurance Plc (IGI), to pay a total sum of N3.940, 354, 01 million, to one of its former employee, Olajide Clement Ilesanmi, who was rendered redundant by the company.

The above mentioned sum according to Justice Olufunke Yemi Anuwe, is Mr. Olajide’s outstanding entitlement, general damages and cost of instituting the suit. 

Justice Justice Olufunke Yemi Anuwe, ordered the insurance company to pay the above sum while delivering judgment in a suit marked NICN/ABJ/112/2020. 

Olajide through his lawyer, Emmanuel Ezeifedikwa, had asked the court for “a declaration that the termination of his employment by the insurance company, is under paragraph 3.6 (Redundancy) of the Defendant’s Manual/Handbook.

“An order compelling the defendant to pay to him all his outstanding entitlements totaling the sum of N3,458,278.00 only.

“The sum of N500,000 only as general/exemplary damages for the psychological agony, inconvenience and mental torture. And the sum of N200,000.00 only being cost of litigation.”

The insurance company in its counter-claims filed by it’s lawyer, Paul Omoijiade, against Olajide, asked the court to order the claimant to refund the sum of N919,102.84, being excess of terminal benefits paid to him. 

The insurance company claimed that the Claimant’s entitlement was under paragraph 3.9 of the Defendant’s manual/handbook and the total sum he was entitled to was the sum of N901,233.16 as his final benefit but he was erroneously paid the sum of N1,820,355. Adding that It was for this reason the Defendant wanted the Claimant to refund the sum of N919,102.84.

Deciding the suit, Justice Anuwe, after going through all the documents tendered, arguments canvassed and citing plethoras of legal authorites, dismissed IGI’s counterclaim.

The judge therefore ordered IGI to pay the claimants the sum of N3,340,354.01; N500,000 and N100,000, as outstanding entitlement, general damages and cost of instituting the suit respectively.

Justice Anuwe also ordered that IGI must pay the judgment sum within 30 days from May 24, 2023, when the judgment was delivered, and that failure to comply with the order, will result to the sums attracting interest at the rate of 10 percent per annum, until such a time as the judgment sums are fully paid.

editor

See author's posts