They had approached the apex court through their counsel, Mr. Norrison Quakers (SAN) to challenge judgments of two lower courts declining to grant an order to compel Tidex (respondent in the appeal) to pay the sum of $56 million profit after tax, being sums declared by Zapata before the company was taken over by the former.
In the ruling delivered on October 6, 2021, the judges of the apex court, comprising Justice M.D Muhammad (who delivered the ruling), Justice C.C Nweze, Justice U.M. Abba Aji, Justice A. Jauro and Justice E. A. Agim, ordered the hearing of the appeal upon the appellants’ brief of argument alone.
A copy of the ruling has since been served by posting on the entrance gate/wall of Tidex on December 29, 2021, at Apartment 1, 1st Floor, 12A A.J. Marinho Drive, Off Sinari Daranijo Street, Victoria Island, Lagos by a Senior Executive Bailiff of the Supreme Court of Nigeria, Abuja, Michael Ukor Akan.
The appellants’ counsel, Mr. Quakers, expressed delight over this development, stating that the sole issue placed before the apex court for determination will finally be laid to rest when the appeal is heard on February 23, 2023.
The suit was initiated before the National Industrial Court (NIC) in 1998 when the appellants, as former workers of Zapata, sought an order to compel the respondent to pay $56 million profit, after-tax, being sums declared by their former employer before the company was taken over by the respondent. The $56 million claims is 10 per cent of the total profit of $560 million declared by their former employers.
It is the appellants’ case that they had entered into an agreement with Zapata to open a worker’s trust fund, which would entitle employees who had stayed up to 30 years with it to benefit from 10 per cent of profits declared by the company, which would also apply in the event of winding up of the firm, which eventually occurred when the respondent took over.
The appellants have, therefore, accused the respondent of withholding the $56 million due to them from the trust fund created for the benefit of the former employees of Zapata before its merger with Tidex.
The appellants had prayed the NIC to, among other reliefs, declare that by virtue of the documentary evidence placed before the court, there was in existence a Zapata Marine Workers Trust Fund, which has been redeemed by the respondent upon taking over assets and liabilities belonging to ZMSN Limited, as opposed to Zapata Marine Employees Shares created under a 1978 Trust.
Tidex, on the other hand, denied the existence of any trust fund and contended that the suit was speculative. Specifically, the director of Tidex Nigeria Ltd, one Ade Williams, deposed to its counter-affidavit, claiming that the respondent had at no time taken over the management, assets or liabilities of ZMSN. He further said that the merger, which took place between the parent companies in the USA, had no effect on their subsidiaries in Nigeria.
NIC, had in a decision delivered by Justice B. Adeyemo (presiding), Justice Benedict Kanyip and Justice V.N Okobi, dismissed the appellants’ claims. An application for leave to appeal the decision of the NIC was equally declined at the material time on grounds that no appeal could then lie from the court in respect of labour-related matters. The Court of Appeal also dismissed the appeal filed by the appellants on grounds of a fair hearing.
Despite serving the appellants’ brief of argument at the apex court on Tidex on November 9, 2019, the latter failed to file a Respondent’s Brief of Argument. Consequently, the workers obtained an order for the appeal to be heard on their (appellants’) Brief alone on February 23, 2023.
