LEGAL PRINCIPLE: CONSTITUTIONAL LAW – State Creation – Successor States – Joint Ownership of Unvested Assets
PRINCIPLE STATEMENT
When the composition of the community comprising a state changes as fundamentally as in this case by a redefinition of the areas comprising the state, it will be legalism carried to rather absurd limits to hold that the old order remains. What is real is that the old state is dissolved and new entities are created, none of them representing, and exclusively succeeding to the assets and liabilities of, the dissolved state.
RATIO DECIDENDI (SOURCE)
Per Ayoola, JSC, in A.G., Ondo State v. A.G., Ekiti State (2001) NLC-1362000(SC) at p. 71; Paras C–E.
"When the composition of the community comprising a state changes as fundamentally as in this case by a redefinition of the areas comprising the state, it will be legalism carried to rather absurd limits to hold that the old order remains. What is real is that the old state is dissolved and new entities are created, none of them representing, and exclusively succeeding to the assets and liabilities of, the dissolved state."
EXPLANATION / SCOPE
Upon state creation, the old state is dissolved and new successor states emerge. Neither successor exclusively inherits the assets and liabilities of the dissolved state. Absent specific vesting provisions, unvested assets are jointly owned by the successor states until shared. It is absurd to hold that the old order remains unchanged. The legal fiction of continuity does not apply to deny joint ownership. Successor states must negotiate sharing or seek legislative determination. The principle prevents one successor from claiming exclusive ownership of assets that belonged to the dissolved state. This reflects the reality of state creation—new entities, not mere continuations. Joint ownership preserves equity pending distribution.