A British appeal court has overturned an order that prevented a Nigerian construction company from enforcing parts of a $48 million arbitration award.
The company is seeking damages over an abandoned hotel project at the Lagos airport.
The ruling was delivered in November 2020 but Freelanews has just obtained a copy.
The award, given in favour of AIC Ltd, a construction company, was against the Federal Airport Authority of Nigeria, FAAN.
On June 1, 2010, an arbitration panel headed by late Justice Kayode Esho awarded $48 million as damages against FAAN for violating a concession agreement involving AIC Ltd, documents seen by Freelanews.
At a hearing on December 6, 2019, Veronique Buehrlen, sitting as a Deputy High Court Judge ordered that the appellant (AIC) has leave to enforce the arbitration award in its favour in the sum of $48 million, together with interest.
However, a week later, on December 13, 2019, the judge allowed an application by the respondent, FAAN, to reconsider her order of December 6, and she rescinded AIC’s right to enforce the award. She also granted FAAN relief from sanctions.
In the latest judgment, the British court of appeal allowed an appeal by the company, AIC Ltd, after finding that the lower court did not take into accounts the role of FAAN in slowing the proceedings when it reversed an earlier decision to enforce the award.
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