The Doctrine of Utmost Good Faith, Contractual Breaches and the Relationship between Clubs and the LMC News

Navigation: Home / News / Columnists / The Doctrine of Utmost Good Faith, Contractual Breaches and the Relationship between Clubs and the LMC

The Doctrine of Utmost Good Faith, Contractual Breaches and the Relationship between Clubs and the LMC

By Daily Sports on June 25, 2016

The doctrine of Uberrimae fidei is generally recognised as one of the most firmly entrenched principles in law. Almost every court, tribunal and administrative panel have recognised the continuing vitality of this doctrine in modern time, and it is experiencing a recent trend toward consistent use. The utility of the doctrine as applied by all sectors cannot be understated, because the doctrine is a mutual one, requiring both parties to a contract to act in good faith.

The principles underlying this rule were stated by Lord Mansfield in the leading and often quoted case of Carter v Boehm (1766) 97 ER 1162, 1164,

“The special facts, upon which the contingent chance is to be computed, lie most commonly in the knowledge of the insured only: the under-writer trusts to his representation, and proceeds upon confidence that he does not keep back any circumstances in his knowledge, to mislead the under-writer into a belief that the circumstance does not exist... Good faith forbids either party by concealing what he privately knows, to draw the other into a bargain from his ignorance of that fact, and his believing the contrary.”

The doctrine of Uberrimae fidei is deeply rooted in Nigeria Football. In fact, the Nigeria Professional Football League (NPFL) Framework and Rules 2015/2016 in clear letters provide that “In all matters and transactions relating to the League, each Club shall behave towards each other Club and the LMC with the utmost good faith.” (Section A, Rule 5.5.1 of the NPFL Framework and Rules 2015/2016)

The Rule expects each Club to in all its dealings towards other Clubs on the one hand, exhibit a high sense of professionalism, transparency, sincerity, openness and to disclose material facts necessary for the growth of the game as the case may be. On the other hand, the Rule again expresses the need for Clubs to at all times relate with the LMC in utmost good faith.

Many would argue that the doctrine of utmost good faith is not applicable in the context of the NPFL since there seems to be no contractual nexus between Clubs in the top flight league and the LMC and even if by conduct by Clubs that have agreed to play in the League organised by the LMC that no legal document creates a connection to invoke the Uberrimae fidei doctrine.

We argue that by virtue of Section A, Article 5.5.4 of the NPFL Framework and Rules, there exists a contract between the Clubs and the LMC in all intents and for all purposes connected to the objectives of the League. That Section stipulates that “Membership of the League shall constitute an agreement between the LMC and the Clubs and between each Club to be bound by and in compliance with: the Laws of the Game, the NFF Statute, the Articles of Association of the LMC, the Statutes and Regulations of FIFA and so on.”

The reported cases of encroachment, pitch invasion, contractual breaches of Player-Club agreement which the LMC frowns at are arguably ways the Clubs deviate from full observance of the doctrine of good faith.

Please let’s meet here again next week for more on Uberrimae fidei – the doctrine of utmost good faith.

Till then.

•Amobi Ezeaku, Esq. is the Team Manager of Rangers International FC of Enugu. Your comments and reactions are welcome. Please send to 08038338272, 08158461730 or by e-mail to amobi.ezeaku@yahoo.com; publisher@dailysportsng.com

Source Daily Sports

Posted June 25, 2016