A Nigerian firm, Cona Engineering and Technical Services Limited, has sued a United Arab Emirates (UAE) company, John Crane Middle East FZE, demanding over $10 million for alleged multiple contractual breaches.
In the suit No: FCT/HC/CV/323/2025 filed at the High Court of the Federal Capital Territory in the Abuja Judicial Division, the plaintiff alleged a series of contractual breaches by John Crane Middle East LZE of S-20113 South Zone, Jebel All Free Zone 61040, UAE.
Based on the series of alleged contractual breaches, the plaintiff sought a declaration that it is entitled to payments of the actual commission due and payable by the defendant for products or goods supplied or delivered to end-users in Nigeria for the period from October 1, 2020 to June 10, 2024 when the defendant failed and or refused to revert to the initially agreed commission rate of 25% of the net invoice or purchase orders received as stipulated by Agency Marketing Agreement entered by the parties in Nigeria and executed or enforceable in the territory of Nigeria.
Cona Engineering in court papers filed by its counsel, Njemanze & Njemanze, also sought a declaration that it is entitled to the agreed commission rate of 25 percent of the net invoice price or purchase orders received from end-users had the defendant made supplies to end users through the plaintiff during the period from October 1, 2020 to June 10, 2024 in breach of the local content laws of the Federal Republic of Nigeria.
It also sought the payment of the sum of $60,481 being commission short paid by the defendant to the plaintiff for the period from October 1, 2023 to June 10 2024, (excluding the period from January 1, 2023 to June 27, 2023) for products or goods supplied or delivered to end-users in Nigeria.
The plaintiff is also claiming the sum of $9 million being money due and payable to Cona Engineering as agreed agency commission for all the products of the defendant supplied and delivered directly to end-users by the defendant in breach of the Local Content Law Agreement between the parties.
Other claims by the plaintiff include but not limited to the sum of $1 million being damages for breach of contract, with all the claims totaling over $10 million.
In its statement of claim, the plaintiff said it has been the duly accredited agent of the defendant since 1996 vide a Marketing Agency Agreement wherein the plaintiff represents, markets and distributes the defendant’s products or equipment to end users, inclusive of the Nigeria Liquefied Natural Gas Limited (NLNG).
According to the plaintiff, this relationship is evidenced by the various Marketing Agency Agreements executed by the plaintiff and the defendant, and various written letters/correspondence by the plaintiff and the defendant.
Providing further details in the statement of claim, Cona Engineering said the agency relationship involves the business of marketing, distribution and sale/supply of mechanical seals and spare parts manufactured by the defendant to the Nigerian oil and gas market including NLNG, Indorama, Notre, TSKJ Nigeria Limited, Dangote Refineries and Petrochemical Nigeria Limited.
A representative of Cona Engineering in a brief chat alleged a bias against his company in favour of another pseudo-Nigerian company with Nigerian- Lebanese substantial stakeholders. The Cona representative alleged that the Managing Director of John Crane Dubai as at the time of their contract termination, Mr. Aziz Saleh, is a Lebanese national. Cona further alleged that previous several attempts by John Crane Dubai to substitute their company at NLNG with the same Lebanese company were rebuffed by NLNG management in compliance with the Nigerian Local Content Laws.
Cona attached evidence of its attempt to resolve the matter amicably by requesting for account reconciliation between both parties but John Crane allegedly declined, contrary to the rules of engagement of the Smiths Group which John Crane Middle East is part of.
No date has been fixed for hearing of the suit.
