The Court of Appeal, Lagos Division, has dismissed an appeal by MTN Nigeria Communications Limited and upheld a National Industrial Court judgment that awarded ₦5,101,674 in compensation to a former Procurement Manager, Mr. Theodore Nwabueze Ikpa, over an unreasonable post-employment restrictive covenant.
In a unanimous decision in Appeal No. CA/LAG/CV/319/2021, Justice Danlami Zama Senchi held that the four-year restraint clause in Ikpa’s contract was unlawful because it prevented him from earning a living after his employment ended. Justices Boloukuromo Moses Ugo and Paul Hamed Bassi concurred.
The dispute arose from the termination of Ikpa’s employment in December 2008. He sued MTN at the National Industrial Court (Suit No. NICN/LA/05/2016), alleging that the company failed to give him the mandatory one month’s notice or salary in lieu and that the restrictive covenant effectively barred him from securing alternative work until retirement age in October 2010.
Although the trial court, presided over by Justice A. N. Ubaka, dismissed most of his claims in its June 13, 2018 judgment, it found the restraint unreasonable and awarded the compensation plus ₦100,000 costs.
MTN appealed, arguing that the National Industrial Court lacked jurisdiction over the alternative claim, that the covenant was reasonable and necessary to protect its confidential information and trade secrets, that Ikpa had accepted it voluntarily, and that he failed to prove actual loss. The company also contended that the damages were excessive and that there was no evidence it had prevented him from finding new work.
Ikpa’s counsel, Adetunji Adedoyin-Adeniyi, countered that the clause shut him out of the labour market. He pointed to evidence that MTN had previously sued former employees over similar covenants, creating a climate of fear that deterred prospective employers.
The Court of Appeal rejected all of MTN’s arguments. Justice Senchi held that the National Industrial Court properly assumed jurisdiction and correctly evaluated the evidence. He noted that Ikpa’s unchallenged testimony showed prospective employers declined to hire him once they learned of the restraint. The appellate court also relied on evidence that MTN had litigated similar clauses against other former staff, which corroborated Ikpa’s claim of practical hardship.
The court affirmed that uncontroverted evidence which is not inherently incredible should be accepted, and that sworn testimony tested under cross-examination does not require documentary corroboration when left unchallenged. It found no basis to interfere with the damages award, reiterating that appellate courts will not lightly disturb general damages unless they are manifestly excessive or the trial court applied wrong principles.
Having found the appeal devoid of merit, the Court of Appeal dismissed it in its entirety, affirmed the National Industrial Court’s judgment, and awarded an additional ₦500,000 costs against MTN in favour of Ikpa.
A story of courage, wonder, and the transformative power of self-belief; perfect for readers aged 10+ who love adventure. To place order: +234 806 130 3237 | +234 803 582 0870 OR Tap the link to grab a copy:https://www.zeekapublish.com/product/the-magical-life-of-anna
