The Lagos Federal High Court on Wednesday dismissed the legal proceedings brought by Rite Foods Ltd against the Nigerian Bottling Company (NBC) Ltd and Managing Director Matthieu Seguin for alleged trademark infringement.
Rite Foods had initiated proceedings before Federal Superior Court Judge Chukwujekwu Aneke, in which it obtained an exparte order that prevented NBC from passing on its energy drink in a way that could infringe its trademark.
In response, NBC filed a preliminary objection notice against the lawsuit on the premise that Rite Foods’ requests were filed in bad faith and lacked merit, as the lawsuit lacked a firm basis to be legal.
Judge Aneke had complied with the exparte order on September 27, 2021.
During the proceedings before Judge Allagoa brought by Rite Foods, NBC asked the court to vacate the contempt proceeding, as Judge Aneke had complied with the injunctions that form the core of the plaintiff’s lawsuit.
NBC attorneys also prayed to the court to award punitive costs against Rite Foods if it does not find a basis for contempt proceedings.
Judge Allagoa held that the court cannot hold one of the parties in contempt when the order has been declared invalid and annulled, and noted that said order can no longer be obeyed or executed.
Therefore, the court overturned the arrest and other proceedings brought by Rite Foods against NBC and Seguin.
The NBC lawyer reiterated that both alleged contemporaries (NBC and his MD) are entitled to punitive costs from Rite Foods as it initiated the judicial process by subjecting them to an “unnecessary” and “avoidable” legal battle.
The attorneys for both defendants asked for the cost of N5,000,000 each against Rite Foods.
Rite Foods’ attorney did not accept the cost and urged the court to dismiss the NBC attorney’s request, alleging that the proceedings were filed in good faith.
Judge Allagoa recalled that the court advised Rite Foods not to proceed with the judicial process as Judge Aneke had complied with the order.
Upon hearing the attorney’s submissions, the court awarded the N1,000,000 cost against Rite Foods.
NBC insists that there has been no trademark violation with its Predator Energy drink, as the Predator brand logo had been used in many other markets, prior to the launch of Fearless in Nigeria.
Fearless Drink: Court Dismisses Rite Foods Contempt Lawsuit Against NBC