Sharon Properties Limited V. Paul B. Nigeria PLC (2014)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

ABUBAKAR JEGA ABDULKADIR, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the decision of Hon. Justice Valentine B. Ashi, of the High court of the Federal Capital Territory, sitting at Zuba, (hereinafter to be called the Lower Court), delivered on the 12th of April,2011.

The facts of this case, as can be gleaned from the Record of Appeal, are that the Respondent, (as Plaintiff at the Lower Court) by way of Originating Summons, claimed against the Appellant, who was the Defendant at the Lower Court, the following reliefs:

1) An order enforcing the arbitral award dated the 10th of June, 2010, pursuant to the contract between the parties herein dated the 3rd of September, 2004 and arbitral proceedings on disputes arising there under;

2) An order that the defendant bear the cost of this suit consisting of the cost of filing and the cost of the execution and legal fees of this suit in the sum of N5,000,000.00 (Five Million Naira).

3) And for such further or other orders as this Honourable Court may deem fit to make in the circumstance.

The summons is supported by an 18 paragraphed affidavit, deposed to by one Engr. Ade Oluwanyi; the Managing Director of the Respondent company, to which were annexed Exhibits A – E.

Exhibit A, dated the 3rd of September, 2004 is a copy of a Construction agreement between the Respondent and the Appellant;

Exhibit B is a copy of an Arbitral Award to the Respondent against the Appellant, by one Prof. Akin Akindoyeni as Sole Arbitrator;

Exhibit C is a copy of letter publishing the award as per Exhibit B above;

Exhibits D and E are a copy each of a corrigendum to Exhibit B, as well as a letter publishing same, both of which were made subsequent to the award by the same sole arbitrator.

The Respondent’s case as stated in the Affidavit in support of the summons is that on the 3rd of September, 2004 the parties entered into a construction agreement. Pursuant to Clause 19 of the agreement, the parties were to refer any dispute arising there from to an arbitrator, who was to be appointed by the president of the Society for Construction Industry Arbitrators.

A dispute there after arose as regards the final amount due and payable to the Respondent and in line with Clause 19, the dispute went to arbitration with Prof. Akin Akindoyeni, as sole arbitrator.

The Respondent was successful in the arbitration and was awarded the sum of N30,151,687.80 (Thirty Million, One Hundred and Fifty one Thousand, six Hundred and Eighty seven Naira, Eighty Kobo), excluding interests. The Appellant however failed and refused to pay the sums awarded under the award, hence this suit at the Lower Court.