HeadlineEstate Residents Can’t Be Compelled To Pay Dues, Federal Court Rules

Estate Residents Can’t Be Compelled To Pay Dues, Federal Court Rules

GTBCO FOOD DRINL

SAN FRANCISCO, September 30, (THEWILL) – Nigerians who live in residential estate cannot be compelled to be a member of the Community Development Association (CDA) popularly known as residents’ association of estate, Federal High Court, Ikoyi, Lagos, has ruled.

The court added that membership and payment of dues, levies to such associations are voluntary and declared any action of force on a resident’s membership or financial contribution unconstitutional.

In a suit number FHC/L/CS/982/2020 filed by Megawatts Nigeria Ltd against the Registered Trustees of Gbagada Phase II Residents’ Association over payment of estate dues from 2017 to 2020, the company sought the relief of the court to determine if it is bound by law to pay dues, levies to the Estate Association as well as membership of the CDA.

Megawatts further claimed that the estate security prevented its trucks from accessing the estate in order to compel and coerce the company to pay requested fees.

The Residents Association on its part argued that since Megawatts Nig. Ltd is a company resident within the estate, it is bound to pay demanded dues and levies.

‘The primary issue before the court was whether a person; resident in an estate can be compelled and coerced into membership of a resident association?

Delivering judgment on the case, Justice Oweibo declared that “no one can be forced to be a member of a residential association, be it a company operating within the space of the residential estate or a person who is a resident in that estate.”

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The court also declared that payment of dues, levies to such associations are voluntary and declared any action of force on a resident’s financial contribution unconstitutional.

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