The Vessel Mv Naval Gent & Ors V. Associated Commodity International Limited (2015)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

YARGATA BYENCHIT NIMPAR, J.C.A. (Delivering the Leading Judgment)

This appeal is against the ruling of the Federal High Court sitting in Lagos and delivered by HON. JUSTICE ABDULLAHI MUSTAPHA on the 21st June, 2006 wherein the Court set down suit No:FHC/L/CS/731/2000 for hearing.

Dissatisfied with the said ruling, the Appellant filed a Notice of Appeal dated 22nd June 2006 setting out a single ground of appeal.

Brief facts of the case are that the Respondent commenced an action against the appellants via a writ of summons supported by a statement of claim claiming as follows:

a. The sum of USD$410,000.00 (Four Hundred and Ten Thousand United States dollars) representing the cost of caked cargo with an interest on the said sum of USD$410,000.00 (Four hundred and ten thousand United States Dollars) from 10th July, 2000 until judgment is given.

b. The sum of USD$90,000.00 (Ninety thousand United States Dollars) as general damages

c. The Plaintiff also claims the legal cost of this suit.

The transaction was covered by three bills of lading issued in Bangkok, Thailand. The said bill of lading incorporated a charter party of which

Clause 44 provided for Arbitration in London. Pursuant to the Arbitration clause, the Respondent referred their dispute to arbitration.

Meanwhile the Federal High Court stayed proceedings pending the outcome of the arbitration. Final award was handed down on the 4th February, 2004 after which the Appellants applied for the registration and enforcement of the award and it was registered as a judgment of the Federal High Court.

The Respondent thereafter filed an application dated 22nd November, 2004 at the same Court for the suit which was stayed earlier, to be set down for trial and the application was granted by the Federal High Court. It is against the said ruling that the Appellants are challenging the jurisdiction of the Court to entertain the claims in view of the arbitral award which has been registered for enforcement.

Parties filed and exchanged their briefs, the Appellants’ brief dated 2nd December, 2010 was filed on the 3rd December, 2010 and a reply brief dated 18th May, 2015 and filed same day. The Respondent filed its brief on the 2nd December, 2010 but deemed on the 16th April, 2015. The Appellants distilled the following issue for

determination in this appeal, it states thus:

“Whether the Federal High Court retains any jurisdiction to entertain the Respondents claims in Suit No/FHC/L/CS/731/2000 in view of the unchallenged London final arbitration award on the same claims?”