Conflict of Interest as a Basis for the Dismissal of an Employee

CASE TITLE: Agomuo v. Fidelity Bank Ltd (2023) LPELR-60663(CA)

JUDGMENT DATE: 26TH JUNE, 2023

PRACTICE AREA: LABOUR LAW

LEAD JUDGMENT: YARGATA BYENCHIT NIMPAR, J.C.A.

SUMMARY OF JUDGMENT:

INTRODUCTION:

This appeal borders on Labour Law.

FACTS:

This appeal is against the decision of the National Industrial Court, sitting in the Lagos Judicial Division and delivered by HON JUSTICE A.N. UBAKA on the 14th of December 2017 in Suit No: NICN/LA/115/2014, BETWEEN: MISS LILIAN UKACHI AGOMUO V. FIDELITY BANK LTD. Judgment was entered in favour of the Respondent.

The facts leading to this appeal are amenable to a brief summary. The Appellant (Claimant at the trial Court) instituted the suit via a General Form of Complaint with Statement of Facts dated and filed on the 8th day of April, 2015. The Appellant claimed for following reliefs:

i. A declaration that the summary dismissal of the Claimant by the Defendant from the Defendant’s employment vide the letter dated the 24th of March, 2014, is unlawful, wrongful, null and void and therefore of no effect.

ii. Payment of terminal benefits or in the ALTERNATIVE, payment of the sum of N50,000,000.00 (Fifty million naira only) as damages for unlawful dismissal.

iii. Interest on the said terminal benefits/damages at the Defendant’s commercial lending rate per annum from the 1st April, 2014 till judgment is delivered in this case, and thereafter, interest at the rate of 30% per annum until the entire judgment debt is liquidated.

iv. AND SUCH other order(s) as the Court may deem fit and necessary in the circumstance of this case.

The Respondent (Defendant at the Court below) filed a Statement of Defence on the 24th of November, 2015. The Appellant equally filed a reply to the Respondent’s Statement of Defence dated 14th December, 2015, together with Appellants additional written deposition. The Respondent later filed a list of further documents on the 6th of April, 2017.

At the trial, parties called one witness each and tendered evidence in support of their respective cases. Both parties filed and adopted their Written Addresses and thereafter, the trial judge entered judgment in favour of the Respondent, upheld the summary dismissal of the Appellant from the Respondent’s employment and dismissed the Appellant’s reliefs for payment of her accrued terminal benefit with interest by the Respondent. The Appellant’s dissatisfaction with this judgment led to this appeal.

ISSUES FOR DETERMINATION:

The appeal was determined on:

a. Was the National Industrial Court (lower Court) right to go outside the reasons given by the Respondent for the dismissal of the Appellant and outside the terms of the employment between the parties in reaching its decision? In other words, can the lower Court substitute its own reason for dismissing the Appellant aside from the reasons given by the Respondents for doing so and based on the terms of employment between the parties?

b. Did the Respondent adduce sufficient evidence at the lower Court in proof of the grounds for the dismissal of the Appellant as held by the lower Court?

c. Where the Honourable Court upturns the decision of the lower Court, what are the remedies available to the Appellant?”

DECISION/HELD:

In conclusion, the Court of Appeal dismissed the appeal.

RATIOS:

LABOUR LAW – MASTER/SERVANT RELATIONSHIP – Position of the law as regards a master and servant relationship
LABOUR LAW – EMPLOYER/EMPLOYEE RELATIONSHIP – Nature of conflict of interest and when an employee would be held guilty of conflict of interest
LABOUR LAW – DISMISSAL OF AN EMPLOYEE – When the acts of an employee would be held to have rightly earned a dismissal
LABOUR LAW – DISMISSAL OF AN EMPLOYEE – When a conflict of interest will arise that warrants a dismissal
LABOUR LAW – DISMISSAL OF AN EMPLOYEE – Position of the law where an employer dismissed an employee on grounds of gross misconduct
LABOUR LAW – EMPLOYER/EMPLOYEE RELATIONSHIP – Whether the Court can impose an employee on an unwilling employer
LABOUR LAW – EMPLOYER/EMPLOYEE RELATIONSHIP – What the Court considers in determining entitlements/terminal benefits of an employee and the effect of failure to present the same