N800bn judgment debt: S’court asks parties to maintain status quo in suit against Shell management

The supreme court has ordered all parties to maintain status quo in a contempt proceeding filed against Osagie Okunbor, managing director, Shell Petroleum Development Company of Nigeria (SPDC), and three management staff of the company.

The ruling comes as the court of appeal sitting in Owerri ordered the managing director and the other three management staff of SPDC to appear before it over contempt of court.

The court of appeal sitting had expressed displeasure with the management of Shell for disobeying two court rulings against the company over the payment of an N800 billion penalty.

However, Okunbor and other management staff approached the apex court, seeking a stay of the execution of the decision until the appeal is determined.

Led by Kudirat Motonmori Kekere-Ekun, a panel of five judges gave the order last Thursday. 

The panel delivered judgement on appeal number SV/CV/398/2022 filed by Osagie Okunbor and others over alleged disobedience of the orders of the court.

Other members of the panel include Chima Centus Nweze, Uwani Musa Abba Aji, Helen Moronkeji Ogunwumju, and Adamu Jauro.

Kekere-Ekun held that “the pending applications filed before the court are contentious and cannot be taken now”.

“The parties shall file written addresses. The parties are hereby ordered to maintain the status quo pending the hearing of all the contentious applications,” the ruling reads. 

The contentious applications before the court comprise an application dated April 4, 2022, seeking an order staying further committal proceeding in appeal number, CA/OW/489/2020, and another application dated April 21, 2022, seeking an order setting aside ex-debito justitiae, notice of appeal filed in appeal number SC/CV/393/2022; and an application filed on April 29, 2022, asking the apex court for an order striking out ex-debito justitiae, notice of appeal filed in appeal no. SC/CV/393/2022.

The matter has been adjourned till November 3, 2022, for a hearing.

In November 2020, a federal high court had ordered Shell to pay N800 billion to 88 communities in Egbalor Ebubu, Rivers state, over an oil spill that damaged their farms and waterways.

Shell, which denied causing the spill, had appealed the verdict.

On March 14, a court of appeal in Owerri stopped Shell from selling any assets in Nigeria until a decision is reached on the company’s appeal suit over the N800 billion ($2 billion) penalties. 

The court also ordered Shell to deposit the money in an account controlled by the court within two working days.