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Mortgage firm, developer reach accord over Royal Garden Estate

Published by Guardian on Mon, 09 May 2011


AFTER years of legal fireworks,  a peace accord may have been struck between the feuding parties over a litigation that trailed the construction of a housing provision known as Royal Garden Estate, located on the brawling Ajah, on the Lekki-Epe corridor, Lagos State.The development, if eventually sails through would go along way to relief subscribers of the mega estate, who have been anxious to see the case amicably resolved without jeopardising their stakes in the estate occupying 150 hectares of land, to produce 2,042 houses, if the original plan is still intact.The Guardian reliably learnt last week that the controversy had been largely settled as the developer had reportedly made overture to the financial firm, which in turn had accepted the offer.It is in a case of Crest Mortgage Savings and Loans Limited suing Lagos Attorney General, the developerTrojan Estates LimitedSolar Gardens Project and the states Registrar of Titles as the first to fourth respondents in that order.Really, plan to settle has been on without making headway.  In fact, the latest development may not be unconnected with a stern warning of Justice Kazeem Alogba, of a Lagos High Court, during the last hearing.  The judge, who was visibly angry with the slow pace of the settlement bid had said he would not accept any further delay in the matter.  That was three months ago.According to an impeccable source, we have received an offer of land as compensation from the state.  We have accepted the offer and a final approval of the terms of settlement is awaiting the governor.According to its statement of claim, Crest Mortgage said that on the basis of a development agreement of July 13, 1998, between it and Lagos, it was given the right to develop an estate under the states private developers scheme, in Lekki sub region of Lagos.Following the said agreement, the claimant said that it secured the right of occupancy on the disputed five hectares of land for a period of 99 years.According to the firm, huge sums were expended on the project for the provision of infrastructure and other works, but in an attempt by some officials of Lagos State along with agents of New Towns Development Authority (NTDA) to forcefully take over the land, the claimant said that it was shocked when its workmen were chased away from the site on December 28, 2002.The firm claims that when its Chairman, Mr. Gboyega Fatimilehin, approached NTDA, he was told that the demolition squad was acting on instructions to take over possession of the site because the first defendant had in July 2002 revoked the firms C-of-O.Fatimilehin said that for the first time, he was shown a copy of a local weekly newspaper called Eko Today dated July 1-7th 2002 wherein was published a notice of revocation of rights on some land, which included its property.Though the mortgage firm said it was at all material times developing the land, it claimed that the said revocation according to the notice was executed over the failure of the beneficiaries to develop the site within two years of allocation as well as for defaulting in payment of ground rent.However, it claimed that its numerous attempts at paying the paltry sum of N25,000 per hectare as ground rent were unsuccessful, as it was told at various times that the file for the property could not be located. Besides, the firm said it was informed that the amount of ground rent payable was under review.The claimant said that before the purported revocation of its C-of-O in July 2002, the Lagos State governor had already allocated the land in dispute along with other land to Solar Garden Projects, Limited. The mortgage firm said the survey plan attached to the C-of-O issued pursuant to the said new allocation showed that the survey had been done since February 18, 2002 in favor of Royal Garden Estate, owned by Solar Garden, long before the purported revocation in July 2002.The firm theref ore, asked the court to nullify the purported revocation by Lagos and declaration to order that the demolition carried out on the land was illegal and unconstitutional and right of occupancy issued to the third defendant is void and of no effect.Also, a sum of N382 million was claimed for special and general damages as well as legal fees against the defendants.From their three statements, however, the defendants are stating essentially that the action of the plaintiff is statute barred, noting that the suit discloses no reasonable cause of action and, therefore, the court lacks jurisdiction to hear and determine the matter.To Lagos, The plaintiffs action is incompetent, misconceived, an abuse of court process and should be dismissed with substantial cost.The second defendant, Trojan Estates Limited said that pursuant to the states powers under the Land Use Act of 1978, the first defendant revoked the plaintiffs C-of-O in July 2002 and by virtue of Section 2 of the Public Officers Protection Law Cap 26, Laws of Lagos State 2003, any action filed against a public officer in respect of acts done or committed by him in execution of a law or public duty in the course of his employment as this case, must be commenced within three months of the act. It also advocates that the suit be dismissed.While denying the statement that the controversial property was allocated to it long before its revocation, the third defendant, Solar Gardens said that the revocation of plaintiffs rights was lawfully done.The plaintiff, according to the third defendant, did not suffer any damage that could warrant any order to damages. It also denies that the claimant committed funds from its sister companies or investors on the parcel.Solar Garden then asked the court to deem the claimants claim as being frivolous and vexatious, worthy of dismissal with substantial cost.
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