Zenith Bank has been fined ₦85 million for freezing a law firm’s account based on an invalid order from a magistrate court with no jurisdiction. A judge also ordered a public apology.
An Abuja High Court has fined Zenith Bank ₦85 million for unlawfully freezing a customer’s account using an invalid court order. Justice S.U. Bature, who delivered the judgment on July 16, also ordered the immediate unfreezing of the account belonging to Abhulimen & Co.
The court held that Zenith Bank acted on an order issued by a Nasarawa State magistrate court, which lacked jurisdiction over banking matters.
“It is the humble opinion of this honourable court that… the 1st defendant owed the claimant a duty of care,” Justice Bature stated, describing the bank’s action as a breach of trust.
The judge ordered Zenith Bank and the Nigeria Police Force to pay ₦60 million as damages and ₦25 million as litigation costs, and to publish an apology in two national dailies and on its website.
He declared that no magistrate court had the legal power to issue a freeze order on a bank account without due process or proper jurisdiction.