Distributorship deal: Court suspends order against Samsung

A Federal High Court in Lagos on Thursday suspended an ex-parte order restraining Samsung Electronics from importing and distributing electronics for sale in Nigeria. The ex-parte order was made pursuant to a suit filed by a Nigerian firm, Somotex Nigeria Limited, against Samsung Electronics West Africa Limited and others over alleged breach of exclusive distributorship agreement on products and services between parties. The plaintiff (Somotex), which is a firm that specialises in manufacturing and distribution of wide ranging products, had instituted the action against Samsung and others before Justice Mohammed Yunusa, complaining against the alleged breach of agreement.

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They said distributorship agreement, according to court processes, was signed on June 20, 2013. Other defendants in the suit are Samsung Electronics South Africa (PTY) Limited, Bangryong Kim, Sunil Ku- mar Pankajakshan, Nigeria Customs Service Board and the Comptroller General of Customs. The court had earlier granted an ex-parte order restraining the defendants from importing and distributing electronics in Nigeria. However, the defendants, through their lead counsel, Kanu Agabi (SAN), had filed a motion asking the court to vacate or vary the ex-parte order, as some had brought untold economic hardship to the business of the defendants. Agabi, a former attorney general of the federation and justice minister, had further argued and accused the plaintiff of suppressing material facts before procuring the said ex-parte order. He further argued that the court was misled by the plaintiff to issue the ex-parte order.