The Court of Appeal in Lagos has dismissed an appeal filed by telecommunications giant MTN Nigeria Communications Limited against the judgment of the National Industrial Court.
The lower court awarded N5.1 million in compensation to a former employee, Mr Theodore Nwabueze Ikpa, after holding that a post-employment restraint-of-trade clause in his contract was unreasonable. The unanimous judgment was delivered by a three-member panel comprising Justices Danlami Zama Senchi, Boloukuromo Moses Ugo and Paul Ahmed Bassi. The court upheld the decision of the National Industrial Court delivered on June 13, 2018. The appeal arose from the termination of Ikpa’s employment as Procurement Manager in December 2008.
Ikpa, through his lawyer, Adetunji Adedoyin-Adeniyi, who led Uju Amara Eliwelu and Olanrewaju Olaegbe, challenged his dismissal, alleging that MTN failed to give him the required one month’s notice or salary in lieu of notice. He also argued that a restrictive covenant in his employment contract prevented him from securing alternative employment until he reached retirement age.
Before the National Industrial Court, Ikpa sought declarations that his termination was unlawful, payment of salaries up to his retirement in October 2010, retirement benefits, or, alternatively, N10 million as damages for the restraint-of-trade clause.
Although the trial court dismissed most of his claims, it awarded him N5,101,674 as compensation for the four-year restrictive covenant and N100,000 as costs.
Dissatisfied with the award, MTN, through its lawyer, Solomon Mbadiwe, appealed the judgment, arguing that the lower court lacked jurisdiction to entertain the alternative claim.
MTN also argued that the restraint clause was reasonable and enforceable, that Ikpa failed to prove any actual loss and that the compensation awarded was excessive.
The telecommunications company further contended that the restrictive covenant merely protected its legitimate business interests, including confidential information and trade secrets. It insisted that the former employee voluntarily chose to comply with the clause.
Source: The Nation News
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