The Lagos State High Court has restrained Cocean Nigeria Integrated Limited from commencing, prosecuting or participating in proceedings against P. E. Bitumen Resources Nigeria Limited in any court or tribunal other than arbitration under the International Chambers of Commerce (ICC Rules).

It is in respect of any dispute arising from a transportation agreement they reached on May 13, 2019.

Justice Olalekan Oresanya awarded N2million cost against the defendant in favour of the claimant for forum shopping and abuse of the court process.

The judge also awarded a personal cost of N2million against the defendant’s lead counsel, S. D. Ndukwe, to be paid into the court’s coffers.

Justice Oresanya ruled there must be an end to frivolous litigation and respect for the sanctity of the court process

The judge delivered judgment in the suit filed by P. E. Bitumen Resources, which sought to restrain Cocean Nigeria Integrated from continuing, prosecuting or taking any further steps in the multiplicity of suits filed by the defendant.

The dispute arose from a transportation business agreement which has an arbitration clause.

The applicant averred that Clause 24 of the deal provides: “All disputes arising out of or in connection with the agreement, including any question regarding its existence, validity or termination shall be referred to and finally determined by arbitration under the ICC rules which Rules are deemed to be incorporated by reference to this clause.”

The claimant averred that notwithstanding the agreement, the defendant commenced suit No. HOW/679/2022 at the High Court of Imo State, Owerri Judicial Division on July 19, 2022 seeking to recover an alleged indebtedness from the claimant.

The defendant also obtained an ex-parte injunction freezing the claimant’s bank account.

The plaintiff, on becoming aware of Suit No. HOW/679/2022, commenced arbitration proceedings against the defendant under the ICC rules.

It also filed an action before the court for an order staying proceedings and referring the parties to arbitration.

The applicant added that the defendant participated in the ICC arbitration proceedings and signed the terms of reference on November 17, 2022.

It added that while Suit HOW/679/2022 and the ICC arbitration proceedings were pending, the defendant commenced suit HOW/374/2023 at the High Court of Imo State, Owerri Judicial Division against the claimant and members of the arbitral tribunal.

Justice Oresanya held that the argument of counsel to the defendant that the arbitration clause in the agreement of the parties is different from a SCOTT V Averay Clause is seriously misconceived and the submission therein is highly misplaced.

“The argument of the learned counsel is simplistic, artificial and pedestrian and it is of no moment and I so hold,” the judge held.

He said the defendant did not deny filing two separate suits at the High Court of Imo State and two other suits at the Federal High Court, Port-Harcourt Division in total disregard to the arbitration proceeding being held in Lagos in line with the arbitration clause, without fully exhausting the arbitration proceedings.