The Federal High Court sitting in Lagos has restrained parties in a maritime dispute from pursuing foreign arbitration, while dismissing an application by the defendants seeking to stay court proceedings.
Delivering the ruling, Justice Akintayo Aluko held that the defendants, having actively participated in the case for nearly two years, had effectively submitted to the jurisdiction of the court and could not subsequently resort to arbitration abroad on the same subject matter.
A statement yesterday said the decision was handed down in Suit No: FHC/L/CS/1554/2022 between Prompton Trading DMCC & Anor (Plaintiffs) and MT Sea Power & 2 Ors (Defendants), a case arising from the arrest of a vessel and related claims. Two key applications were considered by the court.
The plaintiffs, through their counsel, Ben Awurum of Elthon Partners Law Firm, had filed a motion dated November 27, 2024, seeking an injunction to restrain the defendants from continuing arbitration proceedings already commenced in London.
On the other hand, the defendants filed a motion dated December 6, 2024, asking the court to stay proceedings in Nigeria pending the outcome of the arbitration in the United Kingdom.
In his ruling, Justice Aluko found that the defendants’ conduct—particularly their prolonged participation in the court process—amounted to a waiver of any right to arbitration.
“The defendants, by their actions, have abandoned any entitlement to pursue arbitration in respect of the same dispute,” the court held. Consequently, the court dismissed the defendants’ application for a stay of proceedings, describing it as lacking merit and not grantable. The court further granted the plaintiffs’ request, declaring the arbitration proceedings in London as irregular, incompetent, and an abuse of court process.
The proceed ings were accordingly set aside and disregarded. Legal observers note that the ruling reinforces the principle that parties cannot approbate and reprobate by first submitting to the jurisdiction of a court and later attempting to shift to arbitration.
The judgment also affirms the Federal High Court’s authority in maritime matters, particularly in cases involving vessel arrests and jurisdictional conflicts. Further proceedings in the substantive suit are expected to continue before the Federal High Court.
