Conoil Plc. V. Vitol S. A. (2011)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

JIMI OLUKAYODE BADA, J.C.A (Delivering the Leading Judgment)

This is an appeal against the Ruling of the High Court of the Federal Capital Territory Abuja in Suit No: FCT/HC/PET/155/09 delivered on the 1st day of March 2010.

The facts of this case as could be gleaned from the record of appeal are that the Appellant is a Nigerian downstream petroleum distribution company while the Respondent is a foreign company that sells automotive gas oil and other related petroleum products to companies and individuals in West Africa and elsewhere.

Sometime in 2007 and 2008, the Appellant entered into contract agreement with the Respondent by virtue of which the Respondent was required to supply an agreed quantity of automotive gas oil to the Appellant at a designated place offshore Cotonou.

It was alleged that the Respondent performed its own part of the contract but that the Appellant failed to take delivery of the products from the designated place within the agreed period as a result of which the Respondent stated that it suffered losses.

It was also alleged that one of the terms of the contract was that all controversies, disputes or claims arising out of or in connection with the contract or the breach thereof shall be subject to the exclusive jurisdiction of the High Court of Justice in England.

As a result of the losses suffered by the Respondent arising from the breach, the Respondent terminated the contract with the Appellant and instituted an action in the High Court of England in case No. 2008 Folio 1220 against the Appellant for recovery of damages. It was further alleged that all the processes filed in that action were served on the Appellant but that the Appellant refused to appear before the English Court to defend the action. The Appellant in its own case stated that it never submitted to jurisdiction of High Court of England owing to the pendency of Suit No. FHC/L/CS/5475/2008 before the Federal High Court Lagos. The Appellant also stated that it neither resides in United Kingdom nor carries on business in the U.K.

Judgment in the action before the English Court was entered in favour of the Respondent on 22nd May 2009.

The Respondent by a Petition on notice filed on 18th November 2009 applied to the Court below for the registration of the Judgment delivered by the English Court.

In opposition to the Respondent’s application for the registration of the Judgment, the Appellant filed a notice of preliminary objection and an answer to the Petition on 21st December 2009. The Appellant contended that the Court below lacks the jurisdiction to entertain the application for registration of the Judgment and that the Judgment could not be registered given the Provisions of Section 3(2)(a)(b) & (f) of the Reciprocal Enforcement of Judgment Act Cap. 175 Laws of the Federation of Nigeria and Lagos, 1958.

In a Ruling delivered on the 1st day of March 2010, the Court below held that it had the jurisdiction to entertain Respondent’s application. Accordingly, it proceeded to order that the Judgment of the English Court be registered.

The Appellant dissatisfied with the Ruling of the Court below now appealed to this Court.

The learned Counsel for the Appellant formulated four issues for determination. The issues are set out as follows:-

“(1) Whether having regard to the authoritative decision of the Supreme Court in Grosvenor Casinos Ltd vs. Halaoui (2009) 10 NWLR Part 1149 Page 309 Interpreting Section 3(1) & (2) of the Reciprocal Enforcement of Judgments Ordinance Cap. 175 Laws of the Federation of Nigeria, 1958. The learned trial Judge was not in error to have ordered the registration of the Foreign Judgment obtained by the Respondent against the Appellant in this case. (Grounds 5, 7 and 8).