Nigerian Partner Drags HP International, 10 Associates to Court over Contract Breach

Savemore Retail Technologies Limited, a Nigerian retail partner to HP International Inc. has dragged the latter to court in Nigeria over a breach of contract by HP and its distributors in the country.

In a suit case number ID/ADR/2648/2023 waiting before Justice Odusanya of the Lagos High Court, Ikeja, Savemore and its Managing Director, Mr. Patrick Kunmi Adediran, alleged HP and 10 other associates of failure to pay the claimants an accumulated rebate of $62,474.57.

The 11 defendants listed in the case are HP International Inc. (1st), HP Computing and Printing Nigeria Limited (2nd), Mitsumi Nigeria Limited (3rd), Technology Distribution Limited (also known as TD Africa Distribution Limited) (4th), Mr. Emmanuel Asika (5th), Mr. Chimaobi Osuegbu (6th), Ms. Elizabeth Nwajei (7th), Mr. Rajiv Patel (8th), Mr. Ravin Vyas (9th), Mr Kanvar Shah (10th), and Mr. Vinay Bhuwania (11th

Other charges against the defendants include failure to upgrade Savemore into a Gold partner of HP International even after meeting and surpassing set criteria and denying it supposed benefits including Market Development Fund (MDF) in the sum of $50,000, a $70,040.90 over-charged fund, among others.

The claimants said they resorted to litigation after efforts to resolve the matter with the defendants proved abortive.

Mr. Patrick Kunmi Adediran, Managing Director of Savemore Retail Technologies Limited

Apart from praying the court to ensure payment of these amounts with interests accruable on them, Savemore and Mr Adediran, its MD, are also seeking payment of N100 million general damages.

The Bone of Contention

Mr. Adediran averred that he started trading with the HP International and its Nigerian arm sometime in November 2018 with the name Donboscong Retail Ventures, as an HP Business Partner and was issued a certificate of Partnership.

On the 28th of December 2019, he requested that the purchases of Donboscong Retail Ventures be linked and transferred to Savemore Retail Technology Ltd, adding that the transfer was done upon the successful transfer of the transactions with HP, the linkage/conversion was confirmed by an email trial between 28th December, 2019 and 10th January, 2020.

“HP Business partner’s certificate of Partnership was subsequently issued in favour of Savemore Retail Technologies Limited confirming its partnership status with HP,” he said.

He said based on an agreement with the HP, Savemore is entitled to a bonus or rebate on every commercial system and non-commercial laptop it sold.

Adediran said that in June 2020, HP’s partner business manager, Mr. Chimaaobi Osuegbu, sent an email to Savemore Retail Technology giving them a sales target to be met before the end of August 2020 for Savemore to be upgraded to a Gold Partner.

Mr. Emmanuel Asika, HP Country Head Nigeria and 5th DEFENDANT

He explained that HP partners are categorized into Proximity Partner, Silver Partner, Gold Partner, Platinum Partner and Distributors and it was Savemore’s aspiration to become a gold partner.

According to the case file seen by our correspondent, Savemore achieved and surpassed the target, but HP refused to pay claimant it’s bonus/ rebate or upgrade its status to a gold partner as promised.

“As a Gold Partner, Savemore is entitled to Market Development Fund (MDF) in the sum of $50,000 and two staff to be maintained by HP.

“None of these benefits were given to Savemore inspite of attaining the market target given to him. The total sum of rebait/bonus and Market Development Fund due to Savemore amounts to $62,474.57,” Barrister Ese P. Okiti, Counsel to Savemore also said in a chat with our correspondent.

Meanwhile, Mitsumi Nigeria Ltd, the 3rd defendant in the case and one of HP distributors through which Savemore made its major purchases is alleged to have wrongfully and illegally over-charged Savemore the sum of $70,040.90 in its foreign exchange rate application

Mitsumi is said to have imposed black market exchange rates on Savemore instead of using the official rate set by the Central Bank of Nigeria (CBN).

On the 15th day of March 2023, the Claimants’ Solicitor wrote a letter of demand to Mitsumi demanding for the refund of all foreign exchange overcharge.

In addition, Savemore and its MD are also praying the court to make 1st and 2nd defendant refund a sum of N1,287,200 it incurred as part of partners’ incentives arranged for a failed trip to Dubai for HP Road Show 2020.

In another instance, Savemore said it purchased 206 units of HP products through Technology Distribution (4th Defendant) for which the claimant is entitled to a rebate of $5 per package amounting to a total sum of $1,030.00.

Although, TD initially refused to pay the rebate to Savemore until after it was served with litigation notice on the case that he agreed to remit the bonus and settle out of court.

After the case was presented before Justice Odusanya by the Counsel to the claimants Tuesday, October 3, 2023, and an ex parte order was granted, the case was scheduled for hearing on 17th October 2023 at the Lagos High Court sitting at Ikeja.

Meanwhile, when HP replied an email sent to its Communications Lead for Middle East and Africa, Myroessa Metaxa, seeking clarification on the development, it declined to comment on the basis that the matter is already in the court.

Myroessa Metaxa

Its response read, “Thank you for reaching out. By way of introduction, my name is Myroessa Metaxa, and I am the comms lead for Middle East and Africa at HP.

“HP cannot comment on ongoing litigation. HP is committed to working with all relevant parties to resolve this matter. Best Regards.”