United Bank For Africa Plc. v. Triedent Consulting Limited (2023)

LAWGLOBAL HUB Lead Judgment Report – SUPREME COURT

HELEN MORONKEJI OGUNWUMIJU, JSC (Delivering the leading judgment)

This is an appeal against the decision of the Court of Appeal in Appeal No: CA/L/103/2010 coram: I. M Saulawa (as he then was), I. S Ikyegh and R. N Pemu JJCA, delivered on the 15th of March, 2013.

The court below affirmed the decision of the trial court delivered by Honourable Justice D. T. Okuwobi on the 13th of November, 2009 wherein the trial court dismissed the appellant’s application seeking to stay proceedings in suit No: LD/164/09 pending arbitration.

The facts that led to this appeal are as follows:

The respondent by a writ of summons and statement of claim both dated the 4th day of February, 2009 on pages 1 – 12 of the record of proceedings had instituted an action at the High Court of Lagos State in suit No: LD/164/09 against the appellant claiming the following reliefs:

a. Liquidated sums of $321,162.45 and $168,000 being respectively the unpaid values of the invoices dated 14th July, 2008 and 26th April, 2008 representing the payments due to the claimant from the defendant for the executed part of the CRM implementation project provided by the claimant at the request of the defendant. The defendant has refused, failed and or neglected to liquidate the said sums despite several demands.

b. Interest on the aforesaid sums at the rate of 25% per annum from due dates till final liquidation.

c. The sum of N250 million being special and general damages for the libel contained in the defendant’s letter of 19th August, 2008.

d. The sum of N32,000,000.00 being the Solicitor’s fee and costs for the prosecution of this action.

Upon receipt of the originating process, the appellant filed a motion on notice seeking to stay proceedings pending arbitration. The respondent opposed the application of the appellant by filing a counter-affidavit and written address. The trial court dismissed the application.

Dissatisfied with the judgment of the trial court, the appellant filed a 5 ground notice of appeal to the Court of Appeal wherein the decision of the High Court was affirmed.

Dissatisfied with the decision of the Court of Appeal, the appellant appealed to this court vide a notice of appeal dated 27th March, 2013, wherein three issues were raised for determination to wit:

1. Whether the lower court was right when it upheld the trial court’s decision that reliefs 3 and 4 of the respondent’s claims were outside the contract and the arbitration agreement and could not be competently or properly referred to arbitration. (Distilled from ground 1)
2. Whether the learned justices of the court below were right in upholding the decision of the trial Court that section 5 of the Arbitration and Conciliation Act, Cap A18, Laws of the Federation of Nigeria, 2004 and the cases of M.V Panormos v. Olam (2004) 5 NWLR (Pt. 865) 1 and Onward Enterprises Ltd. v. M. V. Matrix (2009) 4 WRN 103; (2010) 2 NWLR (Pt. 1179) 530 applied to this case thereby refusing to stay proceedings and to refer the matter to arbitration. (Distilled from grounds 2 and 3)
3. Whether the Court of Appeal was right in upholding the ruling of the trial court, refusing to stay proceedings and to refer the matter to arbitration. (Distilled from ground 4)

The respondent on the other hand raised two issues for determination:

1. Whether the honourable lower court was right when it refused to order a stay of proceedings pending arbitration on the grounds that the appellant failed to meet the basic requirements before a stay of proceedings pending arbitration may be granted. Grounds 2, 3 and 4.
2. Whether the honourable lower court was right to hold that reliefs 3 and 4 were outside the contract and arbitration agreement as well as the contemplation of parties and as such could not be referred to arbitration. Ground 1

After reading the records and the briefs of counsel, for the determination of this appeal, I have crystalized the relevant issues for consideration into one issue in the following terms: