[ad_1]
Monrovia — Following the issuance of a Writ of Execution by the Commercial Court of Liberia against Mutual Benefits Assurance Company (MBAC) for its failure to settle a judgment of US$11,226,573.85, the insurance company has initiated efforts to amicably resolve the matter with Bea Mountain Mining Corporation (BMMC).
Legal experts say such a move is typical when the losing party believes it has little to no chance of prevailing through further litigation.
In a letter dated July 12, 2025, addressed to BMMC and signed by Cllr. Aloysius Teah Jappah, Legal Counsel for MBAC, the company expressed its willingness to settle.
“I write on behalf of Mutual Benefits Assurance Company to confirm our continued commitment to an amicable resolution of the matters presently in dispute between our institutions,” the letter stated.
It continued:
“In line with public policy favoring negotiated settlements, Mutual has authorized its designated Board members and senior management to join legal counsel in the next phase of discussions. We believe this step reflects the seriousness with which we approach this matter and our desire for a principled and constructive outcome.”
Background of the Case
The Commercial Court’s order, signed by His Honor Judge Chan-Chan A. Paegar, authorized the seizure and sale of MBAC’s land, goods, and chattels to satisfy the debt. If these assets prove insufficient, the writ allows the court to seize the company’s real property.
The action stems from a commercial lawsuit filed by Bea Mountain Mining Corporation, represented by General Manager Hall Ozdemir, against MBAC for failure to honor financial obligations under four bond instruments issued in favor of BMMC.
On April 27, 2022, the Commercial Court ruled in favor of BMMC and awarded judgment in the amount of US$9,847,604.28, determining MBAC’s liability under the contract. MBAC, dissatisfied with the ruling, noted an appeal to the Supreme Court and filed a Bill of Exceptions on May 18, 2022. As a result, an escrow account was opened at Guaranty Trust Bank to hold the judgment amount, pending resolution of the appeal.
However, without further notice to BMMC, MBAC later abandoned the appeal process and filed a petition for a writ of prohibition with the Supreme Court’s Chambers Justice, then Associate Justice and now Chief Justice Sie-A-Nyene G. Yuoh. Although an Alternative Writ of Prohibition was initially granted, Justice Yuoh eventually quashed the writ after arguments.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
MBAC then appealed to the full bench of the Supreme Court. In a January 25, 2023 opinion delivered by Justice Joseph Nagbe, the Court held that MBAC could not abandon a legally initiated appeal process in favor of a writ of prohibition.
“The appellant cannot abort the appeal process and substitute it with an application for a writ of prohibition,” the Court ruled in Mutual Benefits Assurance Company v. Her Honor Eva Mappy Morgan et al.
The Court further instructed the Clerk to send a mandate to the Commercial Court to resume jurisdiction and enforce the judgment. Despite this, MBAC failed to deposit the judgment amount into the escrow account and instead filed a Bill of Information, which the appellee argued was a delay tactic and in bad faith.
MBAC later filed a second petition for prohibition before Chambers Justice Yarmie Gbeisay, rehashing issues already settled by the Supreme Court–an act seen by BMMC as an attempt to obstruct enforcement of the Court’s final judgment.
Pattern of Resistance
This is not the first time MBAC has resisted court orders in the matter. In April 2023, the company reportedly locked its offices and refused entry to court officers attempting to enforce a writ issued by Judge Eva Mappy Morgan. That resistance delayed execution, but this time, the court has successfully effected the writ of execution.
MBAC’s recent approach, however, signals a shift toward compliance and resolution–an outcome that could avoid further reputational damage and legal consequences for the company.
As discussions begin, it remains to be seen whether both parties can reach a settlement or whether the court will proceed with the auctioning of MBAC’s assets to satisfy the judgment.
[ad_2]
Source link
