Before Their Lordships
ADOLPHUS GODWIN KARIBI-WHYTEJustice of The Supreme Court of Nigeria
MICHAEL EKUNDAYO OGUNDAREJustice of The Supreme Court of Nigeria
SYLVESTER UMARU ONUJustice of The Supreme Court of Nigeria
OKAY ACHIKEJustice of The Supreme Court of Nigeria
UMARU ATU KALGOJustice of The Supreme Court of Nigeria
Between
1. MESSRS. NV. SCHEEP
2. VAATMIJ UNIDOR WILIE MSTAD...........Appellant(s)
AND
1. THE MV “S.ARAZ”
2. KORAY SHIPPING AND TRADING INC.) (OWNERS OF THE MV “S.ARAZ”).........Respondent(s)
…………………….A…………………….
Ogundare, JSC (Delivered the Leading Judgment):- The main question that calls for determination in this appeal is as to whether the admiralty jurisdiction of the Federal High Court can be invoked solely for the purpose of obtaining security for damages, interest and costs that may be awarded in arbitration proceedings being conducted in a foreign country. There are two other minor questions raised in the appeal, the necessity for which resolution depends on the answer to the main question.
The facts briefly are as follows:-
The plaintiffs (who are appellants in this appeal) are owners of the vessel M.V. “Cindya”. By a charterparty dated 17 October 1989 the second defendants/respondents herein hired the said vessel from the plaintiffs. A dispute arose between the parties resulting in a claim made by the plaintiffs on the second defendants/respondents for demurrage and or damages for detention of the vessel M.V. “Cindya”. The claim was referred to arbitration in London, United Kingdom and was still pending when the proceedings leading to this appeal commenced in the Federal High Court, Lagos.
On 22 February 1995, Ascona Shipping Ltd, agents for Messrs N.V. Scheep Vaatmij Unidov Willel Matad, Curacos -the plaintiffs in the present suit filed an action in rem (Suit No FHC/L/CS/213/95, against the present two defendants claiming:-
“The plaintiffs, as agents to Messrs N.V. Sheep Vaatmij Unidor Wille Mstad of Curacoa, owners of the Vessel M.V. “Cindya”, claim against the defendants, jointly and severally, the sum of US$250,000 (United States Dollars Two hundred and fifty thousand only) as security for damages, interest and cost in respect of the claim for demurrage and/or damages for detention relating to the second defendant’s use or hire of the said M.V. “Cindya” pursuant to a charterparty dated 17 October 1989 presently under arbitration in London, United Kingdom.”
