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SOUTHEAST TEXAS RECORD

Wednesday, April 24, 2024

Court affirms most of directed verdict in People's Club of Nigeria USA expulsion case

Lawsuits
General court 06

HOUSTON – A Nigerian social organization has lost part of its appeal in a dispute over a ruling in favor of the chairman of the Houston branch of the club.

Justice Marc Brown of the Texas 14th Court of Appeals issued a 20-page ruling on Sep. 20 modifying the Harris County 165th District Court decision in the lawsuit filed by People's Club of Nigeria USA and the Peoples Club of Nigeria International against 68 former members of the organization.

"The PCN appellants bring three issues on appeal. They contend that: (1) the trial court erred by granting equitable relief to (Alphonsus) Okpara and the intervenors based on the doctrines of judicial nonintervention and unclean hands, and the trial court reached erroneous conclusions in its order granting directed verdict; (2) the trial court erred by awarding attorney’s fees to Okpara’s counsel; and (3) the trial court erred by assessing costs against PCN. We modify the trial court’s order by deleting its second conclusion. In all other respects, we affirm the trial court’s judgment," the ruling states. 

People's Club of Nigeria USA and the Peoples Club of Nigeria International sued chairman of the Houston group Alphonsus Okpara and others due to a dispute involving the expulsion of Okpara and other members.

As stated in the ruling, in 2013, Alphonsus Okpara was the chairman of the Houston branch of The Peoples Club of Nigeria. Early that year, the ruling states "certain individuals brought a lawsuit in Nigeria against PCN," and in February of that year, the PCN "issued a letter directing all branch chairmen and secretaries to 'condemn the suit in writing' by April 2, 2013."

Also in the ruling, on Feb. 19, 2013, "PCN issued another letter to all members directing all branches to 'condemn the said court action in strongest terms' and forward to PCN a copy signed by the branch chairman and secretary," and the club branches in the U.S. were notified “'to henceforth relate and take directives from the National/International Headquarters and relate with only' two certain PCN individuals 'till further notice.'”

The Houston branch did not condemn the Nigerian lawsuit and, as a result, was notified by the club's headquarters in Nigeria that, by a querry issued, for noncompliance with the national directive "and requested that they state why they should not be subject to 'disciplinary actions,' with a two-week deadline to respond,'" the suit states.

The ruling stated that a meeting took place in Nigeria on June 29, 2013, with a resolution that said, among other things, that "the Central Executive Committee is henceforth empowered to dissolve the executive committee of any such branch that has shown gross indiscipline and/or insubordination to the authorities of the club," as well as "that the said committee is further empowered to suspend or expel any person or persons that violate the provisions of the constitution or resists the resolution."

A convention in Dallas took place almost one month later, and it was decided to expel Okpara and other members of the Houston branch, with the expulsion confirmed on Oct. 25, 2013. Following the incident, PCN USA sued Okpara on allegations of breach of fiduciary duty, conversion, fraud and theft under the Texas Theft Liability Act.

On Nov. 7, 2016, the lower court granted a directed verdict to the parties, considering both the expulsions and the Dallas meeting "void." The trial court also ordered PCN USA to pay more than $90,000 in attorney's fees to Okpara's attorney and that the plaintiffs take nothing on their claims. The plaintiffs filed for a new trial or a motion to modify the judgment which was overruled.

Texas 14th Court of Appeals case number 14-17-00099-CV

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