Contractual Relations between Employer And Employee by Oluyemisi Dansu

Contractual Relations between Employer And Employee by Oluyemisi Dansu

The
regulation of the relationship between an employer and an employee is derived
from 2 primary sources i.e. (i) statutes and (ii) the contract of employment.
The contractual terms are either expressly stated in the contract of employment
or they may be implied by statute, custom/practice, Staff Handbook and
collective agreements.
It is trite law that where
parties have entered into a contract or an agreement, they are bound by the
provision of that contract or agreement as this is the whole essence of the
doctrine of sanctity of contract. Consequently in any dispute as to the rights
and obligations of parties arising out of the contract of employment, it is
vital that the contractual terms be proved in order for an aggrieved party to
be entitled to a relief.

Termination
of Employment
In Nigeria, an employer or employee has the right to terminate
the employment for any reason or no reason at all. As long as he acts within
the terms of his employment, his motive for terminating the employment is not
relevant. The rationale behind this is the common law principle that you cannot
force an unwilling employee on an employer and vice versa thus the Nigerian
Courts will not impose an employee on an employer and vice versa.
For a termination of
employment to be lawful, it must be done in accordance with the provisions/
terms of the contract of employment and conditions of service. Where the
termination is not in accordance with conditions of contract, the termination
is wrongful and a claim for breach of contract becomes tenable.
Generally, contracts of
employment are terminated by giving the prescribed notice provided for under
the Contract and where notice is not given, the employment can be terminated by
payment of salaries the employee would have been entitled to for the period of
notice in lieu of the said notice.
Where a contract of
employment is wrongly terminated, the remedy available to an aggrieved party is
monetary damages for breach of contract (the quantum of damages is what the
claimant would have been entitled to if the employment had been rightly
terminated) save for contracts of employment with statutory flavour i.e. where
an employee is appointed pursuant to the provision of a statute putting it over
and above the ordinary master and servant relationship. The courts took an
early stand that a remedy of specific performance/ reinstatement would not be
decreed in cases of contracts of service.
For contracts with statutory flavour, a claim for reinstatement
of employment can be sought however this remedy is not available to an employee
whose employment is based on a simple contract of employment. The Supreme Court
made this point clear in the case of Ilodibia .v. N.C.C. Ltd. (1997) 7 N.W.L.R (Pt.512)174 where Wali J.S.C stated:

“Where the master has purported
to dismiss the servant, even though not in accordance with the laid down
procedure in the contract, the servant cannot treat the contract as still
subsisting but he must proceed as if he had been wrongfully dismissed. For a
wrongful incomplete disregard of the terms of the contract of service is
obviously a repudiation by master and the servant’s remedy is an action in
damages only”
When
does a Notice of Termination/Resignation takes Effect
A notice of resignation/termination of appointment becomes
effective the moment it is received by the person or authority to whom it is
addressed. This is because, there is absolute power to resign/ terminate an
employment and no discretion to refuse to accept notice and it is not necessary
for a person to whom the notice of resignation/termination is addressed to
reply that the resignation/termination is accepted.
Dismissal
From employment
An employer has the right to dismiss an employee without notice
for gross misconduct however this right is not to be abused to the detriment of
the employee. It cannot be exercised at the whims and caprices of the employer,
it must be exercised in accordance with the terms of the contract of employment
and conditions of service.
Where an employee challenges
his dismissal, the onus is on the employer to justify the basis or grounds of
the dismissal by establishing that the employee in fact misconducted himself as
contained in the letter of dismissal and where the employer fails to justify
the dismissal, the dismissal is wrongful.
Propriety
of Dismissal sequel to termination/resignation of employment

The Supreme Court held in the case of Jombo .v. P.E.F.M.B (2005) 14 NWLR (Part
945) Page 457
, (where an employee had filed an
action for unlawful termination of his employment and thereafter his employer
issued him with a dismissal letter in a bid to frustrate his claims for damages
and terminal benefits) as follows:

“What then can be the meaning
of dismissing an employee from a relationship, which no longer exists arising
from the earlier termination? The two Courts below should have seen that the
latter dismissal of Plaintiff/Appellant as irrelevant and diversionary
following his earlier termination.”


“The behavior of the 1st
Defendant/Respondent shows bad faith and bad taste. What is however more
worrying is the lame manner in which the Courts below threw up their hands in
surrender thus allowing a litigant manipulate to its advantage the adjudicatory
process”
In line with the foregoing
authority and the position of the law which stipulates that upon receipt by the
recipient, a notice of termination or resignation takes effect from the date of
termination/resignation stipulated in the notice. It is clear that a subsequent
dismissal after the termination date is in-effective as there no longer exists
an employment from which the employee can be dismissed from.
The
Place of Fair Hearing in Dismissal From Employment

Where allegations of misconduct have been levied against an employee, it is
pertinent that the employee be given a fair opportunity to defend himself
against the allegations prior to dismissal. In the case of F.M.C
.v. Ido Ekiti .v. Alabi
(2012) 2 NWLR (Pt. 1285) 411
pp; 447, paras C-E
, Abba Aji, JCA held as follows:

“Now in view of the testimony
of the respondent, can the respondent be said to have been given fair hearing
before his appointment was terminated? I think not. The importance of fair
hearing cannot be scuttled away with the administration of justice. The courts
insistence on the right of fair hearing is surely not a matter of mere
formality nor is it merely for the purpose of meeting procedural requirements.
The courts have always insisted on fair hearing because it is the surest
safeguard against injustice. In the matter of employee employer relationship,
there must be an allegation of misconduct or wrong doing which is disputed and
it is for the purpose of ascertaining the truth or otherwise of the alleged
misconduct that the courts insist on fair hearing.”
Claims
for Salaries, Allowances and Terminal Benefits
Claims for salaries, allowances, terminal benefits etc. must be
specifically pleaded and strictly proved and evidence on how a claimant arrives
at the sums claimed must be adduced before the Court. Bare assertions and
testimony without more is not sufficient. The claim must be specifically proved
by adducing concrete evidence in support of it.
An employee cannot proceed on
the basis that his contract of employment is still subsisting and claim for
loss of salaries and other perquisites of his employment after his employment
has been terminated or dismissed from employment even if the termination or
dismissal is wrongful.
An employee who was
validly/lawfully dismissed from employment is generally not entitled to
terminal benefits such as gratuities etc. save as to contributory pension which
is mandated by law and to be paid into the employee’s account with his Pension
Fund Managers.
Enforceability
of Conditions of Service Contained in Employee Handbook
 

It is now settled law that an employee handbook shall only govern the contract
of employment if it is expressly incorporated into the employee’s contract of
employment. The implication of this is that if the Handbook is not specifically
incorporated into the contract of employment, it is a mere gentleman agreement
and if there is a breach of same, it is not enforceable in court.
Enforceability
of the Collective Agreement
The general position of the law is that a Collective agreement
cannot be enforced by an employee (even if same was made for his benefit) if he
is not a direct party or signatory to the Collective Agreement. This position
of the Law is based on the doctrine of privity of contract which stipulates
that the proper parties to sue for enforcement or breach of a contract are
parties or signatories thereto.
The law however recognises
the right of an employee to sue for the enforceability of a collective
agreement where the collective agreement has been expressly or impliedly
incorporated in the contract of employment/conditions of service of employment
or subsequently adopted by an employer as part of the Conditions of service.
Where a collective agreement
is not expressly incorporated into a Contract of employment, a crucial
determinant of the fact that same has been adopted by an employer is where
salaries have been paid based on the salary structure contained in the
Collective Agreement.
The Nigerian courts in
determining if a collective agreement has been incorporated into a Contract of
employment will consider a number of factors such as their incorporation into
the contract of service if one exists, the state of the pleadings, the evidence
before the court, and the conduct of the parties.
Redundancy
Claims

A claim for redundancy entitlement is a claim for special damages which must be
specifically pleaded and strictly proved. Such a claim will not be granted
unless redundancy provisions or terms are provided for in an employee’s
contract of employment or conditions of service. The contract of employment
will provide what redundancy means and where no definition is provided, resort
will be made to the Labour Act for what constitutes redundancy.
Section 20 (3) of the Labour Act defines redundancy as follows:

“In this section “redundancy”
means an involuntary and permanent loss of employment caused by an excess of
manpower.”
Our courts have expounded the meaning of redundancy as defined
by the Labour Act as follows:


“There can be no redundancy
unless the loss of employment is caused by an excess of manpower. This does not
mean that every man whose employment is terminated may regard himself as made
redundant. To ascertain what it means I turn to the English Redundancy Payments
Act, 1965, to which counsel for the plaintiff referred me. The notion of
redundancy payments in Nigeria is clearly derived from English legislation and
it is therefore appropriate to refer to the Act to discover what it means. The
plaintiff will only be entitled to regard himself as redundant if, in the words
of section 1 (2) of the English Redundancy Payments Act, 1965, “the
dismissal is attributable wholly or mainly to:–


(a) the fact that his employer
has ceased, or intends to cease, to carry on the business for the purposes of
which the employee was employed by him, or has ceased, or intends to cease, to
carry on that business in the place where the employee was so employed, or


(b) the fact that the
requirements of that business for employees to carry out work of a particular kind,
or for employees to carry out work of a particular kind in the place where he
was so employed, have ceased or diminished or are expected to cease or
diminish.”


In other words there must be a
change in the circumstances of the business in which the employee is or has
been employed and this change must result in a state of affairs where the
employers find themselves with too many employees or too many employees in a
particular place or for work of a particular kind. This is what excess of
manpower means and it must be shown to exist before a claim to have been made
redundant may properly succeed.”
Jurisdiction
& Limitation Period in Employment Matters


By virtue of the Third Alteration to the Nigerian Constitution, the National
Industrial Court is the sole Court vested with exclusive jurisdiction in civil
matters causes and matters relating or connected with employment and matters
incidental or connected therewith.

An action for enforcement or
breach of a contract of employment must be commenced at the National Industrial
Court within 6 years from the date cause of action accrued otherwise the action
will be statute barred i.e. an aggrieved party will no longer have a right of
enforcement in Court if he doesn’t initiate an action within 6 years.
Ed’s Note: – This article was originally posted by the author on 29th June, 2016 at https://www.linkedin.com/pulse/contractual-relations-between-employer-employee-oluyemisi-dansu (Last Accessed on 29th June, 2016) 
UNIVERSITY OF BRADFORD SCHOOL OF MANAGEMENT ALUMNI ANNUAL LECTURE 2016

UNIVERSITY OF BRADFORD SCHOOL OF MANAGEMENT ALUMNI ANNUAL LECTURE 2016

On Friday, 22nd April, 2016, several brilliant Nigerian minds and alumni of the University of Bradford, School of Management, gathered at the Jade palace, Adeola Odeku, Victoria Island, Lagos for the Alumni Association Annual Lecture Event which turned out to be a evening of fun, friendly re-unions, networking and laughter.



.

The Alumni President, Henry Ikem Obih in his opening speech which was delivered by the
Vice-President, Sola Olubadejo, expressed how for 50 years the University of
Bradford’s School of Management, has drawn young men and women from all over
the world including Nigeria and has sent forth alumni who carry the School of
Management’s dynamic and entrepreneurial spirit with them as they pursue their
lives and careers to all parts of the world.


This year, the theme centred on
‘Entrepreneurship’ and in attendance were two wonderful speakers who delivered
excellent lectures on the topic especially as it revolved around doing business
in Nigeria. The first speaker,
Mrs. Ukinebo Dare, CEO POISE Graduate Finishing School and also a
proud alumni of the School of Management delivered a paper on “
Impression
Management and Networking” while the keynote speech was delivered by
Mrs.
Ndidi Nwuneli MFR.

Mrs. Ndidi, one of the
biggest social impact accelerators in Nigeria,
founder of LEAP Africa,  
Ndu Ike Akunuba (NIA), co-founder of AACE Food Processing &
Distribution Ltd. (AACE Foods), and one of the directors of Sahel Capital &
Advisory Partners, an advisory and private equity firm in Nigeria, which
focuses on the agribusiness and manufacturing sectors delivered her paper on
“Consume
Local” – How to tap in as an Entrepreneur”.

Mrs. Ndidi brought to the
fore her passion for the Agriculture sector in Nigeria and shared the immense
opportunities available to would be participators in the agric business. Mrs.
Ndidi also shared her experience with AACE Foods and the challenges the company
had to overcome while executing their business strategies.

Nigeria remains a viable
source for many raw materials to the international market and our exports will
boom if entrepreneurs focused on  the
agriculture business in Nigeria.

Both presentations were
brilliant and indeed impactful. In attendance, also were other alumni from the
School of Management who represented across board, many professionals from
various industries such as the Oil and Gas, Telecoms, Legal and Banking
industries. The Bradford School of Management has indeed groomed many Nigerian
professionals who are contributing immensely to the Nigerian economy and
society at large.

The event will be hosted yearly with the aim of
exploring and making available resources that can help alumni whether old or
new develop and contribute to the community and the University of Bradford. Also
to provide an
unequalled opportunity to network, see old friends, meet new ones,
learn about the alumni’s recent advances, and participate in discussions about
some of the most important issues facing our Nation.
Adedunmade Onibokun, Esq.
Bradford School of
Management Alumni (2014)
How to Mortgage a Ship by Osinuga Damilola

How to Mortgage a Ship by Osinuga Damilola

Ship mortgage is a form of security wherein the
ship-owner (“Mortgagor”) gives a lender (“Mortgagee”) an interest in a ship as
security for a loan via a Deed and same is discharged upon repayment of the
loan. Mortgages may either be equitable or statutory. The essential feature of
a mortgage is that it is only a security transaction, where the property is
redeemable by the mortgagor upon satisfaction of the debt.  By Section
326(1) of the Merchant Shipping Act 2007 (“MSA”),
 the mortgagee shall
not by reason of the mortgage be deemed the owner of the vessel or share of it
nor shall the mortgagor be deemed to have ceased from being the owner thereof.

Statutory Mortgage
Pursuant to Section 54(1) of the MSA, a ship registered in
Nigeria, or a share in the ship may be made a security for a loan or other
valuable consideration, and there shall be a proper written instrument creating
the security. The document used for creating this security is a Deed of
Mortgage. It is best that such mortgage be registered with the Corporate
Affairs Commission (CAC) and Nigerian Maritime Administration and Safety Agency
(NIMASA).
 Mortgage
of ship creates the status of propriety claim pursuant to the Admiralty
Jurisdiction Act 1991 which is usually superior to general maritime claim. This
entitles the Mortgagee to institute an action in rem against the ship to
realise its security. An action in rem is an action, which is brought directly
against a property.
 Usually, statutory mortgage creates a superior security and ranks
in priority over all unregistered mortgages or subsequently registered
mortgages. Section 57(1) of the MSA states that a registered
ship shall be entitled in priority over the other, based on the date on which
each mortgage is recorded in the register and not according to the date of each
mortgage itself.
 In principle, the property is realizable by the mortgagee if it is
not redeemed by the stipulated date.  The law as regards the realization
of mortgage on a ship is that if the mortgagor defaults or does anything that
tends to jeopardize the security, the mortgagee of a controlling number of
shares may take possession of the ship.  This was the position of the
court in NATIONAL BANK OF NIGERIA LTD. V. OKAFOR LINES LTD. (No. 3)
1967 1 NSC 110. 
Upon taking possession, the mortgagee may use the ship within limits or
sell her.  The mortgagee may use the ship for the purpose of earning
freight.  The mortgagee is however not at liberty to do whatever he likes
with the ship.  He must consider the interest of the mortgagor and
succeeding mortgagees and the law requires him to use the ship only as a
prudent man will use her.  He will be liable to the mortgagor for any loss
sustained through the imprudent use of the ship. See ADALMA TANKER
v. MERCANTILE BANK & ORS.  (1986) FHCLR 414.
Equitable Mortgage
Equitable
mortgage is a mortgage in which the lender is secured by taking possession of
all the original title documents of the property that serves as security for
the mortgage. Sometimes it could be created by words. The most important
element in this type of mortgage is that there is intent by parties to create
mortgage. It is safe to state that this type of mortgage is only used where
legal formalities are not complied with. Equitable mortgage is not a reliable
and dependable security interest.
In practical
terms, the lender who has an equitable mortgage acquires some preferential or
recognizable interest in the vessel concerned, subject always to the
over-riding interest of existing legal mortgages and maritime lien holders.
Where there is a breach of the mortgage deed by the Mortgagor or a default in
payment, the Mortgagor can take a number of actions as listed below:
·        
Action in personam against the ship-owner;
·        
Entitled to arrest the ship by an action in rem at
the Federal High Court pursuant to Section 251 of the Constitution of Federal
Republic of Nigeria and Section 5(2) of Admiralty Jurisdiction Act;
·        
Right to repayment;
·        
Right to take possession for the sale of a ship;
and
·        
Take benefit of insurance (if applicable).

This Article was produced by ‘Damilola Osinuga. LL.B, LL.M, ACIArb. A
Legal Practitioner and expert in the areas of Maritime, Insurance,
International Trade and Ship Brokerage.
Ed’s Note: This article and photo were published by the author on 26th April, 2016 via https://www.linkedin.com/pulse/ship-mortgage-osinuga-damilola-b-l-aciarb-uk-?trk=hp-feed-article-title-publish
Shares: What does it mean in a Company? PT 2 By Teingo Inko-Tariah

Shares: What does it mean in a Company? PT 2 By Teingo Inko-Tariah

Credits  stepupmoney.com 
Ed’s Note: You can begin by reading the first part of this blog series by Teingo on Shares and what they mean in a company  Here




Share Capital explained
In my last post [Shares: What does it mean in a Company? By Teingo Inko-Tariah] I attempted to explain what shares
in a company mean and how they can be acquired. This post will explain some
other related issues for a better appreciation of the subject.
Femi opted out of his paid job to set up his own company – Naija4Life Ltd.
He registered the company at the CAC with a share capital of N1m. There was no
N1m anywhere except on paper i.e. the CAC documentation. Femi took up 500,000
shares in the company and gave another 10,000 shares to his younger brother,
Yemi who was also made a Director of the company.The operations of the block
moulding and interlocking tiles company was largely funded by Femi but he
realized that he needed additional funds to scale up the business and open
branches in other locations. He began to consider how to raise money. If you
are like Femi, please read on to understand the basics of equity funding.

Generally, companies get funding for their operations through debt or
equity. Debt funding includes personal/family loans, bank loans, etc. This type
of funding usually comes with the condition to pay interest on the loan amount
though some loans could also be without interest. Equity funding on the other
hand, is the kind of funding generated by sale of shares of the company to
raise capital for its operations. The implication is that the person funding
becomes a shareholder of the company and becomes entitled to share in the
benefits thereof.
The funds raised by a
company by issuing shares for cash or other considerations is referred to as
‘share capital’.
At the time of
incorporation of a company, the share capital would normally be stated in the
Memorandum of Association and issued to the first subscribers. For e.g.,
Naija4Life share capital in our hypothetical case was N1million naira at
incorporation. This does not mean that the sum of N1m has to be paid or has to
be available at the bank. If the money is available, great. However even if it is
not, what it would mean is that the value of the company at incorporation is
stated to be N1m. It also means that every shareholder who has not actually
paid any money to the company account for his shares owes the company. Shares
could also be paid for by consideration other than cash so for instance,
contributing office furniture, laptop, printer etc. The item contributed will
be valued and the monetary value will be used to ascertain the amount of the
shareholder’s contribution.
Using our hypothetical case, if Femi owns 500,000 shares of N1.00 each,
he owes the company N500,000 while Yemi owes the company N10,000 for his 10,000
shares. As Femi contributes towards the operations of the company, the amount
could be used to defray this debt such that his contribution becomes payment
for his shares.However, If the company goes into liquidation, the shareholders
who have unpaid shares would be liable for the debts of the company to the
extent of the amount owed for the shares taken up by them. So, for e.g., if Femi
had contributed N500,000 in exchange for his shares in Naija4Life Ltd, he will
not be liable as he is no more indebted to the company. However, if he had only
paid up N300,000 by way of contribution of same towards the operations of the
company, he would have an outstanding N200,000. Therefore, if for instance,
Naija4life is owing a supplier, Femi has to provide the money to defray that
debt because he owns shares he has not paid for so his liability is not yet
extinguished.
 

Credits – moneymorning.com 

The Authorised share capital of a company could be issued or unissued.
Issued share capital is the portion of a company’s share capital that has been
taken up by shareholders. The law requires a minimum of 25% of a companies
authorized share capital to be allotted at the time of incorporation. So, in
the case of Naija4Life, they are well above the specified minimum which would
be 250,000 shares because they already allotted 510,000. The shares may have
been paid for in full, in instalments or unpaid for. Unissued share capital is
the portion of a company’s capital that has not been issued to any shareholder.
Where shares are unpaid for, the shareholder could be called upon to pay for
those shares in accordance with the terms stipulated in the articles of association
of the company. This is referred to as a ‘call on shares’ which is a formal
request by a company to the shareholders to pay for shares they have taken up.
Further issue of
shares can be made by a company in future to raise more capital, provided it is
within the stipulated maximum amount authorised by the articles of association.
Thus the authorised share capital refers to the maximum value of the shares
that a company can legally issue. For instance, Naija4Life has an authorised
share capital of N1m. Femi has 500,000 units, his brother Yomi has 10,000
units. They have an outstanding 490,000 units which can raise N490,000 if they
allow other people buy shares in the company. Naija4Life Ltd cannot sell any
more than the balance of shares left which is 490,000 units to raise N490,000.
If they need more capital, they need to increase the share capital from N1m.
Alteration of shares
The share capital of a company can be altered in various ways:
cancellation, increase or decrease. Cancellation of shares is the process of
annulling or extinguishing unissued i.e. shares that have not been taken up or
shares that are yet to be issued. The effect is to reduce the authorised share
capital by the amount of shares cancelled. Share capital could also be altered
by an increase or decrease in the authorised share capital after the necessary
amendments have been made to the articles of association of the company.
An increase in authorised share capital requires the creation of new
shares which will normally be issued to rank in similar status i.e. paripassu
as the shares already in existence. In the case of reduction, the issued share
capital of a company is decreased by any of the following means: extinguishing
liability on any unpaid shares so that the holder of the balance is excused
from paying. For instance, if a company has issued 1,000,000 ordinary shares of
N1 each of which N750,000 has been paid up, the balance of N250,000 could be
extinguished thereby reducing the share capital to N750,000.
Reduction could also take place by cancellation of any paid up share
capital which is lost or unrepresented by available assets. For instance if the
value of net assets of the company is N1m and the share capital is N750,000,
the share capital could be reduced to reflect the realistic value of assets but
nothing is returned to shareholders who have paid N250,000 more. The third form
of reduction in share capital is the cancellation of any paid up share capital
in excess of the company’s needs in a manner similar to the second form of
reduction above. In all cases of reduction, the share capital must have been
issued. It may be paid up or unpaid. Reduction of share capital must be
distinguished from cancellation of share capital earlier mentioned. A company
can only cancel part of its unissued share capital while in the case of
reduction; it is the issued share capital that is dealt with.
Reconstruction of shares
Company shares can be reconstructed and if this is done, it will affect
the value of each share. Reconstruction of share capital is the process of
reconstituting the shares such that the value of each share is either increased
or decreased. However, this does not affect the total value of the share
capital. Reconstruction could either be by way of consolidation or sub-division.
Consolidation of shares is the process of reconstituting shares of a certain
denomination to a greater denomination so that the value of each share is
higher than the original value. For example existing 10,000 shares of 10k each
can be reconstituted into 1000 shares of N1.00 each. The final value will be
the same but the worth of each share has changed from 10k to 100k or N1.00. Consolidation
is usually undertaken to reduce the number of shares in issue while increasing
the nominal value. The purpose is to increase the share price of the
company.Consolidation could also be undertaken to meet the minimum trading bid
size to ensure its listing status on the stock exchange (in the case of a
listed public company).
Subdivision is the opposite of consolidation where shares of a certain
denomination are reconstituted into a lesser denomination. Example existing
10,000 ordinary shares of N1.00 each can be subdivided into 20,000 shares of
50k each. Subdivision is undertaken to increase the number of shares in issue
while reducing the nominal value of each share .Subdivision would usually be
embarked upon to improve liquidity and trading activity on the shares by making
the shares more accessible and affordable and thereby increase shareholder
base. Reconstruction applies to shares that have been issued.
In my next post, I will highlight some procedural steps on increasing
share capital and transferring shares from one shareholder to another.

Sujimoto’s empty apartments in Ikoyi  By Sijibomi Ogundele

Sujimoto’s empty apartments in Ikoyi By Sijibomi Ogundele

www.linkedin.com 

Is it
possible to ask for the price of a Bentley in exchange for the quality of
a Toyota? Impossible! Any sane person would say. While many will
consider this outrageous, it is indeed a stark reminder of the realities
experienced in Nigeria’s Real Estate Industry.

 As an avid Property Enthusiast, Developer or an Observer,
you must have noticed the surge in the number of empty apartments in Ikoyi over
the last few years. To avoid drawing hasty conclusions and to guide our
investment choices, let’s use familiar examples to understand why such
phenomena have festered.

www.linkedin.com 
‘What’s the difference between Ipekere  locally
fried plantain bits sold in remote areas, 
and the Plantain-Chips sold in urban areas?
Have you ever wondered why a good meal prepared in Ijebu Ode would cost less
than one sold in Lagos? An estimated rental for an Apartment in Ikoyi is
about $80,000, while the same apartment in Lekki would cost $30,000. What do
you think makes the difference? It’s Value! In Real Estate, when you put price,
quality and location put together in the same place, what you get is Value. If
Location is a fundamental principle in Real Estate, how much more Luxury Real
Estate?
The argument for
Demand exceeding Supply, over empty Apartments in Ikoyi, is unfounded. Luxury
apartments are in high demand
. Poorly
finished buildings with exorbitant prices constitute the pile of empty
apartments constantly being alluded to. A developer who compromises on the
quality of materials, no matter how highbrow the Property’s location, has no
right to place an exorbitant price on it.

Consider
these – Are Developments such as Tango Towers and Ultimate Towers in Ikoyi,
empty? If such Developments are not empty, imagine what would happen when the
LorenzoBySujimoto with its high-end features, state-of-the-art facilities,
exceptional Returns on Investment and Competitive Pricing, is completed? 

Luxury is not expensive; it is the intention to deliver luxury
that is expensive. While the cost of a nice Three Bedroom Apartment in
Johannesburg would go for about $350,000 the same apartment in Ikoyi would cost
$1M. If the cost of construction materials is the same all over the world, the
price of marble, granite, cement, tiles, kitchen, doors, paints etc, why are
these materials 300% more expensive in Nigeria?
www.linkedin.com 

‘Obe to dun, owo lo paa‘  an adage in
Yoruba parlance, means a delicious meal requires a lot
of money
. You cannot offer a Toyota for the price of a Bentley. One
might argue that both cars will eventually ply the same road but the efficiency
and prestige of a Bentley speaks for itself. Luxury sells itself. Listen, I
have sold crap before and I have sold luxury and I can tell you from experience
that it is easier to sell luxury than crap. When you sell luxury, you sell
peace of mind; you have not only sold something that would last for
generations, but you win the heart of your client who now becomes
your Evangelist. Our biggest marketers are our clients. 

The era of ‘Monkey dey work, Baboon dey chop’
is over. Nigerian Property Developers must realize that times have changed.
The ‘quick fix – quick gain’ syndrome has ended. A research
recently conducted indicates that the biggest problem in the Nigerian Real
Estate Industry is Developers’ emphasis on
cost minimization rather than value maximization, and
this is driven by the need for immediate gratification. What these
Developers fail to understand is that the current Investors and Real Estate
Enthusiasts are upbeat about quality and finishing. This demography is very
exposed and has decided to start requesting value for its money.
Over the next 24-30 months,
the change in Investors’ perception would mean that only developers who
understand that customer is king and those who have the capacity
to deliver exceptional value at a reasonable price, will survive.
Real Estate Developers in Nigeria must rise to the occasion. Clients must get
full value for their money. Otherwise, one day we all would wake up to find all
our apartments empty.

Ed’s Notes: Please note that this article alongside the images were originally published by the author on www.linkedin.com on 5th February, 2016. 

Mapping the Nigeria Gaming Industry (1): Legal & Socio – Cultural factors By Yahaya Maikori

Mapping the Nigeria Gaming Industry (1): Legal & Socio – Cultural factors By Yahaya Maikori

Photo Credit – www.financialnigeria.com 

In
recent times there has been lots of excitement about the African gaming market
for reasons which are not farfetched, given its demographic asset, which presents
a growth opportunity for many companies. Of the 53 African countries Nigeria is
undoubtedly the largest market by virtue of its population making it the
preferred investment destination for most gaming companies, but beyond the
excitement about the industry and its prospects, what is the value of Nigeria’s
gaming industry? Do we have any supporting data? As always we have looked to
companies like PWC and a host of other institutions to guide us. For example
PWC’s 2015 – 2019 gaming outlook while projecting that gaming revenues were up
by 17%, based its projections on only 3 licensed casinos in Nigeria. In reality
casinos occupy the lowest rung of the Nigerian gaming ladder, PWC’s gaming
outlook distorts the impact of the industry and how it permeates our economic
life. A cursory look at the assumptions indicates a lack of understanding or
appreciation of the industry.

Our industry is grossly misconceived
and this misconception manifests itself in frequently asked questions like “do
Nigerians’ gamble?” “Is gambling legal in Nigeria” etc.? The National lottery
Act defines lottery to”… include games of chance or skill”; though the
definition may be unwieldy it definitely expands the frontiers of the industry
beyond what it is traditionally known. If the NLRC definition is anything to go
by then it means that even the “Ayo Ayo’ played across Africa forms part of the
industry and it predates any form of contemporary gaming device, which
currently exists in Africa.
 The legality of
gambling in Nigeria has been questioned severally partly because of controversy
surrounding the1977 slot machine prohibition act; the act was not meant to
prohibit gambling in general, the law simply sought to regulate indiscriminate
littering of slot machines across the length and breath of the country. On
whether Nigerians gamble or not, that depends on the class you belong to. The
truth is that the generality of our people are casual gamblers but we are
certainly active when it comes to mobile based wagering, raffles draws, promos
etc. At the lower end of the spectrum pools betting and lottery has been part
and parcel of our lives from colonial times. Though we are a religious set of
people our religious sensibilities ironically endear us to the fundamental
principles of gambling, the concept of miracles, sowing a seed and reaping
large and immediate rewards.
 Traditionally
gaming has been stigmatized in our climes but casinos and slot institutions
have been the biggest victims of our selective moralization of the industry,
while raffle draws and similar schemes have become widely accepted without so
much thought as to the underlying fact that they are laundered forms of gambling.
If the NLRC’s definition is anything to by it means that even the video games
played with consoles or preloaded on the phones of our 133million mobile
subscribers or those played on desk /laptops, promos, raffle draws by corporate
organizations i.e. telcos , banks, fmcgs etc. form a significant portion of the
industry ,though they run into billions of Naira every year they have never
been considered as part of the industry.
 In
general we may have our reservations about sports betting we however subconsciously
rationalize this type of wagering because it is tied to our passion for sports,
in any case sports betting cannot survive on its own, it piggy bags on sports
events. Interestingly while we consider Lotteries a form of gambling it has
never really been stigmatized maybe because of its historical and religious
roots.
 Now
that we have defined gambling in accordance with Nigeria’s law; as well as
established that almost all Nigerians are involved at some level , what is the
size of the gaming industry in Nigeria? How does it contribute to our GDP? Was
is ever captured during the rebasing of the economy? If it was under which
subsectors was it captured? under ICT, entertainment or tourism?
Re-Invigorating Members’Commitment through Small Claims Arbitration, ODR & Institutionalization of Mentorship –  Ahmed Adetola-Kazeem

Re-Invigorating Members’Commitment through Small Claims Arbitration, ODR & Institutionalization of Mentorship – Ahmed Adetola-Kazeem

Ed’s Note: This is the text of the Speech delivered by Ahmed
Adetola-Kazeem, MCIArb (UK) 
delivered at
the AGM of the Chartered Institute of Arbitrators, Nigeria Branch on 21st March
2016. Same was published by the author on www.linkedin.com on 22nd April, 2016. 
Photo Credit – www.thelaw.tv 
By the records of
the Chartered Institute of Arbitrators, Nigeria has the fastest growing branch
of the institute and ironically, has the lowest record of dues payment
worldwide. As at 15th of October 2015, out of a total of 1241 members only 319
paid up their dues. 144 Associates out of 755, 118 Members out of 379 and 57
fellows out of 107 paid. The percentage of members who did not pay their dues
in the period under review was 74.2%. When I was inducted as a member in 2010
about a 100 of us were inducted, less than 10% of that number are active
presently. Many members, particularly young members are very enthusiastic when
they join the institute, but with time their interest starts to wane. When
asked about the reason for their loss of interest, they complained of
non-inclusion and the lack of practical experience in arbitration practice. In
summary, most members are disenchanted and see no reason why they should keep
paying their dues without any meaningful gain or any hope of one. Some view the
established arbitrators as a clique or worst still, a cabal who do not want
outsiders within their ranks.

To
combat the gloomy picture painted above, there is need for the institute to
take concrete steps at ensuring that members have a sense of belonging by
creating opportunities for them to have practical experience in arbitration. If
there is a failure in this regard it will definitely come to hurt us. This
point was made by Late Hon. Justice Kayode Eso who stated in the foreword to
the book,Commercial Arbitration Law and International Practice in Nigeria that:
“…the
greatest threats to the sustainability and growth of commercial arbitration in
this country remain the dearth of reliable up-to-date literature on the subject
and the entry into the practice of ill-equipped individuals who lack
the learning, comportment and experience 
needed to harness the
benefits of commercial Arbitration. (Emphasis mine)
If the situation as
painted by the late learned jurist is to change, the Chartered Institute of
Arbitrators and other arbitral bodies must institutionalize mentorship and
create opportunities for young arbitrators to thrive by putting in place the
necessary structures for Small Claims Arbitration and Online Dispute
Resolution.
It
should be noted that the challenges painted above are not peculiar to Nigeria;
other jurisdictions face similar challenges and are trying to surmount them.Ciaran
Fahy
 wrote in his article titled: “Dispute Resolution in the Irish
Construction Industry: Future Trends”[2] that:
In
my view arbitration as a process in Ireland, and indeed in other countries, is
in decline and the significant growth of other dispute resolution methods is a
testament to its shortcomings.
 In simple terms arbitration is
perceived, in my view rightly, as too slow and consequently too expensive. It
is by no means uncommon to find an arbitration on a one-year construction job
takes up to two years or so to find the cost associated with an arbitration are
a multiple of the award and even sometimes the amounts claimed. To me, that is
simply unacceptable.
However, I
believe the situation I have described above derives mainly from a lack of
expertise and also a lack of creativity on the part of those involved rather
than an inherent problem with the process itself
I have frequently
heard it said that the pool of arbitrators in Ireland is very limited and that
apart from a few individuals the quality is at best uneven. In my view that is
true but it is not the full truth of the situation since I believe the lack of
expertise extends across the full range of people involved in arbitration and
in particular it seems to me to apply to lawyers where, with a few notable
exceptions, the level of knowledge or understanding is limited.
In
order to rectify this I believe the two approaches are required. First, the
professional bodies involved in this area should recognize the need to provide
ongoing training at an increasingly high level not only to those who are or who
wish to be, arbitrators but also to those who themselves engaged in arbitration
work. I also think those who are involved in arbitration need to be
more creative in their approach and in that context I believe the two new
procedures published by Engineers Ireland are significant. To me, a dispute
involving a relatively small sum of money, and by that I mean anything up to
€250,000, should as a matter of course, be dealt with under a fast-track
procedure such as the Engineers Ireland 100-Day Procedure.” (
Emphasis mine)
The writer above
painted the dire situation arbitration finds itself, he emphasized that lack of
expertise and creativity are reasons for the problems presently beleaguering
the practice of arbitration. In order to remedy this situation, the Chartered
Institute of Arbitrators and other arbitral institutions must build the
expertise of their members and encourage members’ participation through Small
Claims Arbitration, Online Dispute Resolution and Institutionalization of
Mentorship amongst other creative means.
I say forehand,
that the options are closely related but have their distinct features. An
attempt would be made to highlight the features of the various suggestions
within the time frame of this member’s forum. I believe a more comprehensive
discussion on the various suggestions will be made at future programmes or
conferences.
1.    
Institutionalizing Mentorship
Talks
about mentorship have become clichés. Everyone talks about it, but very few
people undertake to practice it in its real sense. It cannot be said that
mentorship in the field of arbitration is totally non-existent; it is at best
done on an ad hoc basis or in most cases theoretical, rather than practical.
The above thought was echoed by Joanna Steele in her paper titled “The
LMAA in the Twenty-First Century: Securing the Future for London Maritime
Arbitration
”[3] where she said:
The experienced
arbitrator would along the line assess the competence of the young arbitrator
through oral and written assessment.
The young
arbitrator through the practical mentorship sessions will learn how to conduct
arbitral proceedings, how to draft orders and ultimately how to draft valid and
compelling awards. For the sake of emphasis, the mentorship programme should be
regulated and monitored by the concerned arbitral institution as is presently
done at the International Council for Commercial Arbitration (ICCA). Once a young
arbitrator has met some set criteria he or she may then be appointed as an
arbitrator in Small Claims Arbitration.
1.    
Small Claims Arbitration
One
of the duties of an arbitral tribunal is to conduct the proceedings in a cost
effective way; for instance, Art. 17(1) of the Arbitration Rules of Lagos Court
of Arbitration provides that: “The arbitral tribunal, in exercising its
discretion, shall conduct the proceedings so as to avoid unnecessary delay and
expense and to provide a fair and efficient process for resolving the parties’
dispute”.
The problem of
costs in arbitration is a recurring issue and parties frequently complain that
arbitration often costs significantly more than it is expected to cost and now
the cost of bringing or defending a claim before an arbitral tribunal is likely
to be considerably higher than that of bringing or defending the same claim
before a national court. The problem of costs is more significant if the amount
in dispute is small. Added to this is the fact an established arbitrator is
likely to turn down a reference if he considers the claims too small, whereas a
young arbitrator will be willing to handle such reference in order to sharpen
his skills and for the needed experience. There is therefore the need for
arbitral institutions to align the need of users for a cost-effective
arbitration process with that of young and inexperienced arbitrators’ need for
the experience to grow in the field of arbitration.
Many arbitral
Institutions have provisions for small-claim arbitration but one of the most
robust is that of the London Maritime Arbitrators Association (LMAA). The
London Maritime Arbitrators Association issued its guidelines with a view to
making the decision-making process as cost-effective and efficient as possible.
Arbitral institutions in Nigeria should take a cue from LMAA by coming up with
similar rules or procedures with a view to mitigating the cost of arbitration
and providing a veritable opportunity for qualified less-experienced
arbitrators to hone their skills.
In LMAA
arbitrations, there are three special procedures namely: the Small Claims
Procedure (SCP), the Intermediate Claims Procedure (ICP) and the Fast and Low
Cost Arbitration (FALCA).
Small
Claims Procedure is applicable to any dispute which parties
have agreed should be referred to arbitration under this procedure. If any such
agreement refers to a monetary limit for disputes that may be so referred, such
limit shall be deemed to exclude interest and cost, unless the parties agree
otherwise.
·        
The dispute shall be decided by a sole arbitrator,
as can be gleaned from the wording of paragraph 2 of the LMAA Small Claims
Procedure 2012.
·        
The Claimant shall file a letter of claim not
exceeding 2,500 words accompanied by relevant documents and the Respondent
shall submit a letter of defence and counterclaim (if any) of the same length
accompanied by relevant documents.
·        
A letter of reply (if any) not exceeding 1,000
words or of reply and defence to counterclaim not exceeding 2,500 words shall
be delivered by the Claimant.
·        
The Respondent shall, if he so wishes, deliver to
the Claimant a letter of reply to defence to any counterclaim not exceeding
1,000 words.
·        
Experts’ reports shall only be admissible with the
permission and subject to the directions of the arbitrator. Experts’ reports
must not exceed 2,500 words.
·        
The general rule is that no hearing shall be held,
however in exceptional circumstances the arbitrator may require that an oral
hearing shall be held. Oral hearing shall be limited to one working day of 5
hours.
·        
The Arbitrator shall issue the award in a month
from the date when he has received all relevant documents and submissions, or,
where there is an oral hearing, from the close of the hearing.
·        
The right of appeal to the courts is excluded under
this procedure.
The Intermediate
Claims Procedure is regulated by LMAA Intermediate Claims Procedure (ICP) 2012.
·        
The Intermediate Claims Procedure shall apply when
the total amount of the claimant’s claims or the total amount of any
counterclaims exceed 100,000 USD, but not 400,000 USD.
·        
Paragraph 2 of ICP provides for an arbitral
tribunal composed by three arbitrators, unless otherwise agreed by the parties.
·        
Each party may serve two written submissions,
without any limit of length.
·        
No expert evidence may be adduced by either party
unless the permission of the tribunal has first been obtained.
·        
An expert’s initial report shall be limited to
3,500 words and supplementary report to 1,000 words.
·        
An oral hearing shall be held only exceptionally,
but in a case where there is no oral hearing but there has been disclosure
and/or witness and /or expert evidence, each party shall be entitled to serve
one set of closing submissions.
·        
The award shall be made within 6 weeks of service
of the last submissions served by the parties.
The LMAA has
adopted the Fast and Low Cost Arbitration (FALCA) Rules in order to encourage
quicker and cheaper resolution of the middle range of maritime disputes– those
which involve neither very large nor very small amounts of money. The LMAA
FALCA Arbitration Clause for insertion in charter parties and other maritime
contracts allows the parties to choose for themselves the size of the claim to
which the FALCA Rules will apply, but if no figure is inserted the Rules will
apply to claims under 250,000 USD.
·        
A single arbitrator shall decide the dispute. Each
party may serve two written submissions, without any limit of length.
·        
After a swift discovery phase (as provided for in
Rules 11 and 12 of FALCA Rules), the parties shall exchange copies of
statements of witnesses and experts’ reports (if any) and within four weeks
thereafter, the parties shall exchange final submissions, together with witness
statements or experts’ reports in reply (if any).
·        
No oral hearing shall be held, unless the
arbitrator deems it necessary.
·        
Under Rule 17 of FALCA Rules, the award shall be
issued within 7 months of the notice of appointment of arbitrator (8 months, if
there is a counterclaim) and the arbitrator may, in his absolute discretion,
take into account any evidence whether strictly admissible or not, and require
the production of any document or the statement of any witness (whether sworn
or otherwise).
1.    
Online Dispute Resolution (ODR)
Online
dispute resolution
 (ODR) is a genre of dispute
resolution
 which uses technology to facilitate the resolution
of disputes between parties. It primarily involves negotiationmediation or arbitration,
or a combination of all three. In this respect it is often seen as being the
online equivalent of alternative dispute resolution (ADR). However, ODR can
also augment these traditional means of resolving disputes by applying
innovative techniques and online technologies to the process.
ODR techniques are
already being deployed around the world in resolving a wide range of
disagreements – from consumer disputes to problems arising from e-commerce,
from quarrels amongst citizens to conflicts between individuals and the state.
ODR is not appropriate for all classes of dispute, but on the face of it, is
best placed to help settle high volumes of relatively low value disputes –
robustly, but at much less expense and inconvenience than conventional courts
or conventional arbitration.
It is believed that
efficient mechanisms to resolve online disputes will impact on the development
of e-commerce. While the application of ODR is not limited to disputes arising
from business to consumer online transactions, it seems to be particularly apt
for these disputes, since it is logical to use the same medium (the internet)
for the resolution of e-commerce disputes when parties are frequently located
far from one another.
Dispute
resolution techniques range from methods where parties have full control of the
procedure, to methods where a third party is in control of both the process and
the outcome.[4]These primary methods of resolving disputes may be complemented
with Information and Communication Technology (ICT).[5] When
the process is conducted mainly online it is referred to as ODR, i.e. to carry
out most of the dispute resolution procedures online, including the initial
filing, the neutral appointment, evidentiary processes, oral hearings if
needed, online discussions, and even the rendering of binding settlements.
Thus, ODR is a different medium for resolving disputes, from beginning to end,
respecting due process principles[6].
While the use of
ODR has become commonplace in the Western world with e-businesses such as
Amazon and eBay solving millions of disputes through ODR, It is instructive to
note that the concept of ODR is still very strange in Nigeria. On eBay alone,
around 60 million disagreements amongst traders are resolved through ODR yearly.[7]
There is a huge
market for arbitrators and other ADR practitioners in ODR if the proper legal
framework is put in place and other modalities for its success worked out. With
the advent of e-businesses in Nigeria, such as Konga, Jumia, Yudala, OLX, Jiji
etc., and the numbers growing daily, the potential for growth of ODR can only
be imagined. If properly utilized, this would be a veritable means for the
inclusion of young arbitrators in the arbitral process.
CONCLUSION
The world is moving
and we must not be left behind. The world is changing so are the dispute
resolution techniques and methodologies. Mentorship, Small Claims Arbitration
and Online Dispute Resolution are interwoven. In most jurisdictions, Small
Claims Arbitrations, due to the amount involved and the need to cut cost as
much as possible, are settled via ODR. Small Claims Arbitration and ODR are
equally veritable instruments for the mentoring and grooming of Young
arbitrators into becoming internationally acclaimed Arbitrators.
I suggest Arbitral
institutions intensify efforts on training young members in practice and
procedure of arbitration. It is almost certain that the Institute will witness
a rise in payment of dues and participation if members feel a sense of
belonging by gaining actual experience and not just listening to speeches. This
is not to say that speeches are not useful to members, but speeches without
action are like learning driving or cooking theoretically without practicals.
The experienced
Arbitrators must realize that the survival and success of the Institute and
arbitration at large lie in the hands of motivated young arbitrators. They
therefore have a duty to build the future of arbitration they would love to
see, by coming up with a robust and deliberate policy to include young
arbitrators in more arbitration proceedings.
[1] AHMED
ADETOLA-KAZEEM, MCIArb(UK) is a counsel at Gani Adetola-Kaseem (SAN) LP. He is
a member of the board of trustees, Lagos Public Interest Law Partnership
(LPILP). He serves in the Young Members’ Group (YMG) steering committee, scale
of fees review committee and membership committee of the Chartered Institute of
Arbitrators, Nigeria Branch. He was a finalist at the International Bar
Association Pro Bono Awards held in Boston in 2013 and won the Governor’s Award
for best Youth Corps member (batch C) Abia State, 2010.
[2] Published
in The International Journal of Arbitration, Mediation and Dispute Management,
Volume 78, Number 2 at page 169
[3] Published
in the International Journal of Arbitration, Mediation and Dispute Management,
Volume 76, Number 3, August 2010 @ page 407
[4]C. Rule, Online
Dispute Resolution for Businesses. B2B, E-Commerce, Consumer, Employment,
Insurance, and Other Commercial Conflicts (San Francisco, Jossey Bass, 2002) p.
37
[5]P.
Cortes, “A European Legal Perspective on Consumer Online Dispute
Resolution” (2009) 15(4) Computer Telecommunications Law Review pp.
90-100.
[6]J. A. García
Álvaro, “Online Dispute Resolution Uncharted Territory” (2003) 7 The
Vindobona Journal of International Commercial Law and Arbitration P. 180.
Does an Infidelity Postnuptial Agreement Prevent Cheating? By Marni Feuerman

Does an Infidelity Postnuptial Agreement Prevent Cheating? By Marni Feuerman

Ed’s
Note: This article was published by the author on www.marraige.about.com at http://marriage.about.com/od/rebuildtrust/fl/Does-an-ldquoInfidelityrdquo-Postnuptial-Agreement-Prevent-Cheating.htm
If
your spouse has cheated on you, and you are attempting to reconcile and rebuild
trust, you will face one of the most difficult challenges a married couple can
experience. One strategy that is sometimes used to dissuade further infidelity is to have the unfaithful spouse sign
an “infidelity post-nuptial
agreement
,” consenting to some specified financial payment (or
another significant item of value) to be paid if they cheat again. Such
agreements, also known as “lifestyle clauses” can be drafted by family law
attorneys.

Manhattan-based
divorce lawyer Jacqueline Newman explains the typical underlying
reasons for post-nuptial agreements: they are “often done after there has been
some element of infidelity in the marriage. The person who has strayed tries to
assure his/her spouse that it will not happen again and to prove the sincerity
of this promise, he commits to putting pen to paper to show how sorry he
is.”  She cautions against these agreements because, “If you over-commit
in the document just to get that second chance, you take the risk that your
spouse will wait just until the ink is dry to call his/her divorce attorney now
that they know they are going to get a good deal.”
Ms.
Newman believes that sometimes postnups may be what is needed for the couple to
move forward. “In a less skeptical tone, they can sometimes work because if a
spouse does believe that their straying spouse was willing to in essence ‘pay’
for his/her sins, it shows that they are committed, and that may be all that is
needed to get the couple back on track.” She notes, “Post-nuptial agreements
are much less common than prenuptial agreements, but we definitely have our
fair share of them in my office.”
“A money deterrent usually isn’t
enough to stop a wealthy would-be cheater.” ~ Andrew G. Vaughn, attorney
and professor
Andrew G. Vaughn, attorney, owner of NuVorce,
and Professor of Domestic Relations Law at Loyola University Chicago School of
Law tells About.com that these lifestyle clauses are most common with celebrity
clients. Professor Vaughn states, “They don’t work. Wealthy people have a lot
of money. A money deterrent usually isn’t enough to stop a wealthy would-be cheater.”
He does not recommend them and notes that they are relatively uncommon. In
fact, he asserts that it is rather complicated to draft highly enforceable
contracts like these.
Brandy Austin, an Arlington Texas-based family
law attorney, believes postnups to deter infidelity “are actually relatively
rare among lower middle to lower upper-class people. They are more for
celebrities, public figures…politicians.” But, in her experience as well, these
agreements in any form are not very common. “If it is included as a deterrent,
the likelihood of someone cheating agreeing to give all of their assets is
poor.” Ms. Austin also believes that these agreements aren’t as effective with
the wealthy.  “If you are already in a position to make a payout, money
doesn’t hold the same value and will not likely deter infidelity.”

Most states are “no-fault” in terms of divorce, but in her
state of Texas, courts may award a disproportionate amount of the estate in
some instances of infidelity based upon the “spending the community estate on
someone other than your spouse or kids – wasting community property.” Says Ms.
Austin.

On the other hand, Randall M. Kessler, family law attorney,
author, and law school professor in Atlanta, reports seeing these agreements
often in his practice, and believes that they are becoming more commonplace.
“Not just when a spouse misbehaves, but also when a relative wants to give a
spouse property but does not like the other spouse so it ‘keeps the gift in the
family.’” He believes they do work, and they are “enforceable in every state
except Ohio and what they do, is to cause people to negotiate their
divorce.  Why go to court and risk having a postnuptial agreement enforced
against you if you can negotiate a little more than is required under the
postnup?” He even has recommended them, for example, “When someone is mad at
their spouse, but does not want a divorce.” He cautions, however, “just like
any family law case, think long and hard about it because once the subject is
raised or lawyers get involved, feelings get hardened and it often spirals into
a full-blown divorce.”
Jeffrey A. Landers, CDFA™, the creator of the Think
Financially, Not Emotionally®
 brand of books and seminars
designed to educate, empower and support women before, during and after divorce
has written on this topic on Forbes online. He explains, “Lifestyle clauses
address non-financial aspects of the marriage, like who will do the housework,
the frequency of vacations…” They are “generally seen as guidelines for
behavior within the marriage, and although they aren’t focused on assets, per
se, there are usually financial penalties for failure to comply with the
terms.” He states that clauses involving infidelity are the most common and
popular of such lifestyle clauses. According to Mr. Landers, they are not just
for celebs anymore, either.
According to Pennsylvania family law attorney, Jeffrey
Kash
, this topic does not come up often in his practice, but these
agreements are enforceable in his state. He does recommended clients “push for
agreements that penalize infidelity and for other concessions in cases where a
spouse has engaged in marital misconduct and wants to stay in the marriage.” He
advises pursuing these concessions “while the other spouse is feeling guilty”
which helps the betrayed partner before the blame game and fighting starts.
“Don’t just limit these types of agreements to infidelity with members of the
opposite sex.” he also suggests.

Mr. Kash describes a case that he handled several years ago, in which the
husband reconciled with his wife after the wife had an affair.  As a
condition of the reconciliation process, the husband requested that the wife
sign a “post-nuptial agreement that would limit her marital property rights in
the event that she subsequently became involved in another extramarital
affair.” You can guess what happened next. Wife cheats again and the
postnuptial, under which the wife had waived her right to marital property, was
upheld.

As a couples’ therapist, whether lifestyle clauses
for infidelity are enforceable, or whether they are utilized by a couple or
not, talking and thinking about them can be beneficial.  If they are
properly negotiated and can be upheld, they can certainly be structured to
deter cheating and other bad acts.  They can also be used where both
parties want divorce proceedings to be kept confidential in the event of future
bad behavior. All of the experts have made good points to consider whether or
not this might be a good option for your marriage. 
The
process of negotiating “lifestyle clauses” may open up the lines of
communication between spouses, and help the marriage in unforeseen ways. These
clauses might encourage people in a committed relationship to discuss fidelity
issues and expectations in advance. Feelings about monogamy and infidelity will
be made clear. Such communication alone can be helpful, even if the clause is
never enforced.  
What couples considering lifestyle clauses should really focus on is the
attitude of the one who cheated. If the partner who strayed seems more than
willing to do anything to save the marriage, including signing a postnup, that
can be viewed as a positive step forward. Alternatively, if the betrayed
partner has to cajole their unfaithful spouse into such an agreement, that is
probably a strong indication that the cheating behavior isn’t likely to
change. 
Photo and article credits:
http://marriage.about.com/od/rebuildtrust/fl/Does-an-ldquoInfidelityrdquo-Postnuptial-Agreement-Prevent-Cheating.htm
What do you think about this discriminatory law?

What do you think about this discriminatory law?

There is a provision of
the Criminal Code that I believe may be construed as discriminatory to women
but I want to seek your opinions so together we may rightly define if the law
really does cross the line of discrimination.

Over time, I have always
believed that the law favoured women over men but that’s quite understandable,
women being the fairer sex deserve the protection right? But what happens when
it’s the other way around. This is what this law seems to be doing.


What will you call a law
that provides a stringent penalty for an offence when it is committed against a male, but provides a more lesser sentence when committed against a female?

What will you call a law
that describes the same act in two ways, it is a misdemeanour when a female is
the victim but it is a felony when a male is the victim. Maybe you can help
shed some light on the intentions of the drafters of this law, maybe there is
something I am missing. Here it goes;

Section
353, Criminal Code Act, CAP. C38, LFN 2004
provides that:
“Any
person who unlawfully and indecently assaults any male person is guilty of a
felony and is liable to imprisonment for three years. The offender cannot be
arrested without warrant.”

While Section 360, Criminal Code Act, CAP C38, LFN 2004 provides that:
“Any
person who unlawfully and indecently assaults a woman or girl is guilty of a
misdemeanour, and is liable to imprisonment for two years
.”

The law says the penalty
for assaulting a male person is imprisonment for three years but that same act
committed against a female person attracts a penalty of two years in prison.
Why?

Do you agree that it
smirks of some discrimination; I would have thought that assaulting a female
should have the stiffer punishment.

Kindly share your thoughts
on the subject matter and let us know what you think.

Thanks.

Adedunmade Onibokun

@adedunmade
dunmadeo@yahoo.com
Photo Credit – www.myfloridalaw.com 
Ibrahim Abdullahi vs. National Pension Commission & ARM Pension Limited (FHC/ABJ/CS/22/16) by: Kehinde Okunola

Ibrahim Abdullahi vs. National Pension Commission & ARM Pension Limited (FHC/ABJ/CS/22/16) by: Kehinde Okunola

Brief Facts:
The
Applicant was an employee of Julius Berger Nigeria Plc, but whose employment
was terminated at some point. He maintains a Retirement Savings Account with
the 2nd Respondent (ARM Pensions) in line with the provisions of the Pension
Reform Act 2014 and had his Pension contribution remitted into his RSA in line
with extant laws of the Contributory Pension Scheme. He sustained an eye injury
at the time of his employment and which condition according to him had
deteriorated before and after the termination of his employment.
He
forwarded an application to the 2nd respondent to allow him access to the
balance in his RSA to fund the medical treatment. The
2nd respondent had in compliance with the provisions of the PRA 2014 earlier
paid him 25% of the sum in the RSA, flowing from which his subsequent request
to access the outstanding balance was denied by the 2nd Respondent (ARM
Pensions).

The
Applicant (Ibrahim Abdullahi) claimed that this refusal was a breach
of his Fundamental Human Right
 as enshrined in Chapter 4 of the
1999 Constitution and the African Charter on Human and People’s Right
(Ratification & Enforcement) Act, Cap 10, LFN, 1990; hence he brought an
application to enforce his Fundamental Human Rights under the Fundamental Human
Right (Enforcement Procedure) Rules.
 Learning
Points:
·        
Jurisdiction:
This
matter was instituted at Federal High Court by the applicant on the authority
of Section 34(1) of the 1999 constitution praying the court to enforce his
fundamental human rights under the Fundamental Human Rights(Enforcement
Procedure) Rules. Being that the matter was brought under Section
34(1) of the 1999 constitution, the Federal High Court will automatically have
jurisdiction to determine the suit. However, by virtue of section 254C (1) of
the Constitution (Third Alteration) Act, 2010, which conferred jurisdiction on
National Industrial Court, disputes arising from payment or nonpayment
of pensions
 is within the exclusive jurisdiction of
the National Industrial Court.
 Pre-Action
Notice
The Pre-action notice requirement
under Section 109(1) of the PRA 2014 is only applicable where the suit is
brought against any of its officers as mentioned in that section and does not
in any way extend to suits brought against the National Pension Commission.
 Fundamental
Objective of the Scheme
The
fundamental objective of the Contributory Pension Scheme is as stated in
Section 1 (1) (c) of the PRA 2014 which is to ensure that every person who
works receive their retirement benefits as and when due. ‘the regime
which the PRA 2014 introduces in Nigeria is not a medical health insurance
scheme.” Per Nnamdi O. Dimgba J. 
(Ibrahim Abdullahi V
National Pension Commission & Arm Pension Limited).
 Contract
The
relationship between a Pension Fund Administrator and a RSA
holder
is contractual, specifically a statutory contract. This
contract is governed by an Act of the National assembly and attempts to vary
the terms of the contract as statutorily mandated will be null, void and
ultra-vires. “Sums are only accessible as provided by the PRA, and
the Applicant has already taken the maximum benefit permissible under the
circumstances that he had found himself” Per Nnamdi O. Dimgba J. 
(Ibrahim
Abdullahi V National Pension Commission & Arm Pension Limited).
 Constitutionality
of the Provisions of Section 7 & 16 of the PRA 2014
The
premise of the argument of the applicant in the case of Ibrahim Abdullahi V
National Pension Commission & Arm Pensions Limited is that Sections 7 &
16 of the PRA is unconstitutional as they violate fundamental rights. In what
can be termed a landmark judgment and a possible Locus Classicus on
the subject matter, the learned judge (Nnamdi Odimgba J.) in
resolving this affirmed the provisions of the PRA 2014 thus; “…the premise
of the argument to wit,…is flawed…in any event the law is pretty settled that
fundamental rights are not absolute, and that their enjoyment is always subject
to laws reasonably justifiable in a human society…
  
 Access to RSA on medical grounds
It
is trite that access to the Retirement Savings Account on medical grounds can
only be in line with the PRA 2014 and any attempt to circumvent these
provisions is unlawful as enunciated in the decision of Nnamdi O.
Dimgba J. 
(Ibrahim Abdullahi V National Pension Commission
& Arm Pension Limited)
“I do not agree that the circumstances of this suit
fall within the contemplation of suits that can be brought through the
fundamental human rights enforcement procedure. I am more inclined to the view
that resort to the fundamental human rights procedure here is done in an
abusive way to circumvent compliance with a requirement in the pension law, or
to avoid complying with an obligation in a statutory contract. As much as I
share some sympathy for the present life challenge of the Applicant, this
practice must be deprecated.”
It
is highly commendable that the court in this matter dispensed the carrot and
sticks within an unprecedented timeframe as issues before his lordship were
dealt with timeously. In conclusion, the learned judge having adumbrated the ratio
decidendi
 (reasons for the decision) came to an inevitable
conclusion that the applicant’s application lacks merit and no order as to
costs was made.

Ed’s Note: This article was published by the author on 15th April, 2016 on www.linkedin.com via https://www.linkedin.com/pulse/ibrahim-abdullahi-v-national-pension-commission-arm-limited-okunola?trk=prof-post