Environmental Case Law Index

The matter concerned an application on whether the Federal Court had jurisdiction to hear a claim for payment against a chartered ship in a contract for the carriage of fish by sea from Argentina to Nigeria. The facts were that the respondent brought an action in the Federal High Court due to a delay by the appellant to take delivery within the time agreed by the parties in the Bill of Lading. The contract however, stated that any dispute arising would be heard in the Courts of Argentina and the applicant challenged the court’s jurisdiction on this basis. The application was dismissed by the Federal Court and the decision upheld on appeal by the Court of Appeal.

The Supreme Court considered whether the lower court had erred in upholding the decision of the Federal Court. It observed that, in the absence of evidence from the respondent on the appellant’s application, there was nothing to consider in favour of the respondent to support their actions contrary to the agreement between the parties, in holding the Federal Court as the proper venue for the hearing and determination of its case against the appellant. It held that in the absence of strong cause shown by the respondent for the trial court not to grant the appellant’s application for stay, the law required that the court exercise its discretion in favour of the appellant by granting the application. Accordingly, the appeal was upheld, and the judgment of the lower court was therefore set aside.