Court Orders First Bank To Pay Olisa Agbakoba N266m Damages After Failed Investment

A Federal High Court sitting in Ikoyi, Lagos, has ordered First Bank of Nigeria limited to pay a human rights lawyer, Olisa Agbakoba (SAN), who is a customer of the bank, the sum of N266, 368,454.85 as general damages against the bank for mismanaging the lawyer's share portfolio investment account. The verdict of the court was as a result of a suit filed before the court by Agbakoba (SAN) against First Bank claiming sundry reliefs.

A statement of claim filed before the court by Babatunde Ogungbamila, a partner in the law firm of Agbakoba and Associates on behalf of the human rights lawyer, alleged that as a result of bankee-customer relationship between him and the bank, the bank introduced its margin trading facility to him sometime in 2008, and he accepted the offer.

First Bank explained to him that the bank's customers were to purchase shares with the advanced margin trading facility, and pledge the shares to the bank, The bank, for a management fee, was to professionally manage the advanced facility by selecting the broker and securities the facility would be invested into.

The bank would also prepare all the paper work needed, provide information about the funds’ holdings and performances, and reserved the power to exit should the fund diminish to a threshold that could impair the economic underpinnings of the investment and leave the bank’s exposure uncovered.

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