Onward Entreprises Ltd V. M. V Matrix & Ors (2022)

LAWGLOBAL HUB Lead Judgment Report

CHIMA CENTUS NWEZE, J.S.C.

At the Federal High Court, holden at Lagos, the appellant, by way of Writ of Summons, sought to enforce a contract of affreightment dated March 25, 2002, against the respondents. By its Amended Statement of Claim, the appellant claimed as follows:

Whereupon the plaintiff claims as endorsees the sum of US$650,000 only or its equivalent in Naira with interest at 21% per annum until payment, being damages suffered by the plaintiff by reason of the defendant’s breach of contract of affreightment and/or bailment and by reason of the defendants’ negligence in their care of the plaintiff’s cargo of rice, as well as Admiralty costs and legal expenses.

The matter proceeded to the trial stage. At the trial, the appellant also filed a motion-exparte, for the arrest and detention of the first respondent and same was granted. The respondents, in turn, filed two (2) applications: one for the release of the respondents’ vessel, and the other sought to shift the vessel to anchorage, pending the hearing of the former for release. Both processes were filed on June 15, 2002. The appellant consented to the release of the respondents’ vessel and filed a consent to release on July 26, 2002.

During the course of the proceedings, the respondents filed a motion for stay of proceedings on July 11, 2003, pending reference to arbitration in London. The motion was supported by affidavits. In response, a Counter-affidavit, in opposition to the application, was filed by the appellant.

The trial Court, in its ruling, delivered on August 11, 2004, found in favour of the respondents, granting their application for stay of proceedings and referred the parties to arbitration in London.

Dissatisfied with the trial Court’s ruling, the appellant appealed to the Court below via a Notice of Appeal containing two (2) grounds of appeal.

The lower Court, by its judgment delivered on June 27, 2008, upheld the ruling of the trial Court, and consequently dismissed the appeal.

The appellant being dissatisfied with the judgment of the lower Court, appealed to this Court via a Notice of Appeal. The said Notice of Appeal, at pages 310- 312 of the record of appeal, contains the following three grounds of appeal:

GROUND 1

The learned Justices of the Court of Appeal mis-directed themselves when they applied the case of Sonnar (Nig) Ltd v Partenreederi M.S. Norwind Vol. 3 NSC 175 at 192, without correctly testing the facts of this case against the ratio.

GROUND 2

The learned Justices of the Court of Appeal erred in law when they held at page 15 of their judgment that as rightly submitted by respondents’ counsel even if the claim to be submitted before the arbitrator is time barred the same provision i.e. Article 3 Rule 6 of The Hague/Visby Rules reproduced supra relied upon by the appellant allows for extension of time. Appellant is entitled to explore that opportunity.

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