JAMES Bay Resources Limited, publicly traded as JBR on the Canadian Securities Exchange, has announced a significant legal triumph in the Ontario Superior Court of Justice. The court issued a decision in favour of James Bay in its claim against Mak Mera Nigeria Limited and Wale Sola.
The Canadian company deals in acquisition, exploration and development of oil and gas opportunities in the prolific Delta region of Nigeria.
Under the decision handed down by Justice Papageorgiou, James Bay emerged victorious in all claims, securing a monetary award of $405,000 for repayment by Mak Mera. Additionally, the court awarded $200,000 in damages for defamation against Mak Mera and Wale Sola, holding them jointly and severally liable.
The legal dispute stemmed from amounts advanced by James Bay pursuant to a memorandum of understanding (MOU) in March 2011, later replaced by a letter agreement on February 1, 2012. The court ruled that the $300,000 payment under the MOU was not owed, as James Bay never acquired an interest in OML-11, an oil and gas property in Nigeria. The $165,000 payment under the Agreement was contingent on TSX Venture Exchange (TSXV) approval for James Bay’s change of business, which did not occur despite the company’s efforts. The court accepted James Bay’s position that Mak Mera was obligated to repay these funds.
Furthermore, the court found a July 2014 letter from Mak Mera, accusing James Bay of false public filings and fraud, to be defamatory. Justice Papageorgiou determined that Mak Mera and Wale Sola failed to prove the truth of these allegations and sent the letter with malice. The decision highlighted that the letter was ‘extremely misleading,’ and Mak Mera and Wale Sola were motivated by a desire for pecuniary benefits.
Justice Papageorgiou emphasised James Bay’s President and CEO, Stephen Shefsky, as a credible witness, while finding Wale Sola not credible. The defendants have indicated their intent to appeal the decision.