By Theresa Kef Sesay
Further to our previous stories on the above subject, on 9th March 2022, after hearing lengthy submissions and authorities from lawyers on both sides, Justice Sengu Koroma, Justice of the Supreme Court of Sierra Leone and President of the Industrial Court, delivered a momentous ruling deciding that Standard Chartered Plc the UK based parent company of Standard Chartered Sierra Leone, are necessary and proper parties in an action brought before his Court.
Two former Senior Management employees, Ibrahim Jubairu Bah, Country Head of Global Banking, Head of Global Subsidiaries and Executive Director and Sulaiman Dauda Lumeh, Chief Operating Officer, Chief Information Officer, Head Retail Banking, Head of Compliance, Business Finance Manager, Business Support Services Manager, aggrieved over their dismissal brought an action claiming damages over USD$ 14,000,000.00. for unfair treatment and conspiracy to ruin their careers and reputations
In his monumental ruling, Justice Koroma concluded that Standard Chartered Plc cannot escape liability by relying on the principle of separate corporate personality based on the evidence before him. In his view, a duty of care was owed to Messrs.’ Bah and Lumeh by Standard Chartered Plc, the breach of which is an important issue the Court has to look into.
The Learned Justice ordered some amendments to the Court papers by solicitors for Messrs.’ Bah and Lumeh and gave 14 days for Standard Chartered Plc’s Solicitors to file a defence to the actions after the amendments.
The General Public may recall that Solicitors for Standard Chartered Plc had filed an application in the High Court of Sierra Leone seeking to have it from the proceedings primarily because even though Standard Chartered Plc is the parent of Standard Chartered Sierra Leone, the two entities are separate and distinct based on the principle of separate corporate personality established in the over 100 years old case of Salomon vs. Salomon, therefore no relationship contractual or otherwise existed between Standard Chartered Plc and Messrs. Bah and Lumeh. Standard Chartered Plc is represented by Ransford Johnson Esq. of Messrs.’ Lambert & Partners, who forcefully argued in support of the application.
Osman Jalloh Esq represents Messrs. Bah and Lumeh, formerly of Yada Williams & Associates, Juella Noldred and Mohamed Jang Jalloh Esq. both of Yada Williams & Associates.
Osman Jalloh Esq., strongly opposed the application and argued that the case before the Court constituted an exception for the Court to lift the veil of separate corporate personality upheld in Salomon case, noting that the Standard Chartered Group was vertically organized, meaning the parent body exercised a very high degree of control over Standard Chartered Sierra Leone and its other subsidiaries and affiliates around the world. The Learned Lawyer submitted that it issues directives, makes rules and regulations that regulate operations of these subsidiaries and affiliates.
He further argued that it is clearly stated in Standard Chartered Plc’s website that it has over 85,000 employees in over 131 countries meaning Messrs.’ Bah and Lumeh are amongst those employees, noting further that employees of Standard Chartered Plc in other countries took a very active part in the decisions to unfairly get rid of his Clients.
He relied heavily on cases decided in the UK, Standard Chartered Plc’s headquarter to reinforce his argument that a duty of care to Messrs.’ Bah and Lumeh was owed by Standard Chartered Plc which he submits had been breached, occasioning damages to them, bringing their professional careers being grinded to a halt which is why his clients are in Court.
In the case of Messrs. Bah and Lumeh, this significant development brings into question the Standard Chartered global mantra, “Here for Good.”
Justice Koroma’s ruling has been described by a very Senior Corporate lawyer who has been in practice in company and employment law in Sierra Leone a paradigm shift. This ruling accordingly sends a loud and clear message to all foreign companies carrying on business in Sierra Leone that while Sierra Leone is open for business, the legitimate interest of employees must be guaranteed and protected by their employers, which is a fundamental human right matter. It is now becoming crystal clear to foreign companies operating in Sierra Leone that their conduct around employee relations must align with the county’s Laws, and any breach will no longer go unchecked.
He concluded that from now onwards, if a branch of a foreign company carrying on business in Sierra Leone commits wrongful acts against Sierra Leoneans, in appropriate circumstances, redress can be sought against such parent foreign company directly.
