Augusta Offshore S.P.A. v. Seabulk Offshore Operators Nig. Ltd.

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Facts:

Facts:

The applicant entered into a charter party contract with the respondent in 2010 wherein the respondent chartered a vessel belonging to the applicant at a daily hire rate of US$12,000.00 (Twelve Thousand United States Dollars) for a period of six (6) months, with an option to extend for another six (6) months on terms and condition expressed in the charter party. After the expiration of the initial six months period, the contract was extended and the initial rate adjusted in accordance with the agreement. The agreement also contained an arbitration clause stating that the arbitration shall be in London, England under the English Arbitration Act. A dispute arose in 2014 between the parties, and the applicant notified the respondent that it had nominated its arbitrator and that the respondent should also nominate its arbitrator within 14 days in line with the agreement. The arbitration clause also stated that in the event that a party fails to appoint its arbitrator, the already appointed arbitrator may proceed with the arbitration. The respondent failed to respond to the notice of arbitration sent by the applicant. After the expiration of the allotted time, the arbitrator nominated by the applicant sent a notice to the respondent stating time within which the respondent was to file its points of defence and costs. The respondent responded to the letter of the arbitrator through its solicitors by objecting to the appointment of the arbitrator on the grounds that no dispute had arisen between the parties and as such the invocation of the arbitration clause was premature. In the letter, the respondent also acknowledged indebtedness of the sum of US$3,188,340.96 (Three Million, One Hundred and Eighty Eight Thousand, Three Hundred and Forty United States Dollars, Ninety Six Cents) out of the total claim of US$6,636,284.00 (Six Million, Six Hundred and Thirty Six Thousand, Two Hundred and Eighty Four United States Dollars).

Subsequently, the arbitrator directed the parties to file and serve their points of claim and defence. The applicant complied but the respondent did not. In accordance with the directive, the arbitrator sent a further reminder to the respondent on the 19th of May, 2015 stating that he was yet to receive the respondent’s points of defence and that the respondent had up until the 22nd of May 2015 to respond to the points of claim of the applicant and that thereafter, it will proceed to deliver its award based on the renewed application of the applicant for award on the sum conceded by the respondent. The respondent failed to respond to the reminder and consequently, the arbitrator delivered its amended third partial final award in favour of the applicant in the sum conceded by the respondent.

In December, 2015 the applicant filed a motion at the Federal High Court, Lagos Division seeking to enforce the arbitral award delivered in London, England. The respondent opposed the application on the grounds that: it was not given proper notice of the appointment of the arbitrator and the arbitral proceedings; it was unable to present its case; and that the composition of the arbitral tribunal was not in accordance with the parties’ agreement. The issues raised in the application border on whether the court in Nigeria can recognize and enforce an award made in England, United Kingdom and whether the defences of improper notice of the appointment of arbitrator and the arbitral proceedings can avail the respondent.

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