Baker Marine Nig Ltd V. Chevron Nig Ltd (2006)

LAWGLOBAL HUB Lead Judgment Report

OGBUAGU, J.S.C.

The dispute between the parties was submitted to an Arbitral Tribunal. Consequent upon the reference pursuant to exhibit 7- Jackup Barge Contract No. LGST – 92 – 03, the parties filed and exchanged their pleadings. The appellant further amended its statement of claim and in its claim or relief No. IV appearing at page 66 of the records, it appears as follows:

“(iv) (U.S. $10,000.00 (Ten million U.S. dollars)) as aggravated damages for conspiracy with the claimant’s Joint Service Partner to breach the Jack-Up Barge Contract No. LGST. 92 .03 as renewed, to the economic injury of the claimant”

On the completion of the trial, the Tribunal in its decision on 14th March, 1996 and titled Arbitral Award spanning from pages 90 – 160 of the records, recognized that the appellant was only entitled to nominal damages for the breach of contract identified, but in the end, awarded a lump sum for both the breach and the tort of negligence. The respondent being dissatisfied with the said award, on 19th March, 1996, took out a civil summons at the Federal High Court, Lagos and therein, sought for an order that the said award be set-aside or in the alternative, for an order refusing the enforcement of the said award.

The respondent also on the same 19th March, 1996 filed a notice of originating motion in respect of the said reliefs. The grounds upon which the applicant relied on are as follows:

“(a) that the award contains decisions on matters which are beyond the scope of the submission to arbitration; and

(b) that the award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration.”

Particulars were duly supplied. In paragraph 14 of the said particulars, the following appear:

“14. The arbitrators lacked the jurisdiction:

a) to award punitive damages in the circumstances not permissible under Nigerian law;

b) to award punitive damages which had been specifically excluded by the Agreement under which the dispute was submitted to arbitration;

c) to award damages punitive or otherwise for an alleged tortious act;

d) in any case, to award damages for the tort of conspiracy when the claimant had failed to establish that he had suffered loss thereby;”

See pages 4 to 6 (Vol. 1) of the records;