Mv “Nozomi” & Anor V. Seabridge Bunkering Pte Limited (2016)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

UZO I. NDUKWE-ANYANWU, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the decision of the Federal High Court sitting at Lagos Division delivered on the 25th September, 2014 by Hon. Justice O.E. Abang.

The facts briefly stated are as follows:

By a writ of summons together with a statement of claim filed on 28th August, 2014, the 1st respondent as Plaintiff claimed against the Appellants as follows:

“(a) The sum of US$208,098.26 being the sum owed the Plaintiff by the Defendants arising from the supply of marine fuel oil and marine gas oil to the MV Nozomi for its operation and maintenance.

?(b) The sum of US$41,758.38 being the accrued interests as at August 21, 2014 for the late payment of the principal Sum arising from the supply of marine fuel oil and marine gas oil to the MV Nozomi for its operation and maintenance.

(c) The sum of US$1,000,000 as general damages.

(d) Interest on (a) thereon at the rate of 2 per cent per month from the date of filing this action until judgment is delivered and 10% from the date of judgment until the judgment sum is entirely liquidated; and

(e) The costs of this

1

action.”

The 1st respondent simultaneously with the issuance of the writ applied for and obtained an order ex-parte dated 28th August, 2014 arresting the 1st Appellant’s vessel to secure their claim, which was subsequently served on the Appellants.

Parties began negotiations about the appropriate security for the release of the 1st Appellant’s vessel but were unable to agree as to the form and quantum of security for the vessel’s release. It is the case of the Appellants that the 1st respondent insisted that it will only consent to the release of the vessel by a cash settlement of the claim despite the provision of a letter of Undertaking by the Appellants’ Protection and Indemnity Club as security for the claim.

The Appellants filed an application for the vessel’s release upon provision of the North of England Protection and Indemnity Club’s Letter of Undertaking in the sum of US$249, 854,64 (Two Hundred and Forty-Nine Thousand, Eight Hundred and Fifty-Four United States Dollars, Sixty-Four Cents only), inclusive of interest and costs.