Process & Industrial Developments Ltd v The Federal Republic of Nigeria [2024] EWCA Civ 790 (12 July 2024)

Process & Industrial Developments Ltd v The Federal Republic of Nigeria [2024] EWCA Civ 790 (12 July 2024)

Section 68(4) of the Arbitration Act 1996 does not deprive the Court of Appeal of jurisdiction to hear an appeal against a costs order made following a section 68 application, as such costs orders are made under the Senior Courts Act 1981 and CPR 44.2, not under section 68. The correct currency for a costs order is the currency in which the liability to the solicitors was incurred and paid, which in this case is sterling, regardless of the source of funds or internal currency conversions by the paying party.

Citation
[2024] EWCA Civ 790
Parties
Defendant/appellant: Process & Industrial Developments Limited; Claimant/respondent: The Federal Republic of Nigeria
Jurisdiction
England and Wales
Judgment Date
12 July 2024
Procedural Posture
Appeal (rolled Up Application for Permission to Appeal and Appeal) / Court of Appeal Judgment Following Refusal of Permission to Appeal by High Court
Outcome
Permission to appeal granted; appeal dismissed.
Legal Topics
Arbitration Act 1996 Section 68(4), Jurisdiction of Appellate Court, Costs Orders Currency, Indemnity Principle, Statutory Interpretation
Arbitration Civil Procedure Costs Arbitration Act 1996 Section 68(4) Jurisdiction of Appellate Court Costs Orders Currency Indemnity Principle Statutory Interpretation

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Parties

Process & Industrial Developments Limited

Defendant/appellant

The Federal Republic of Nigeria

Claimant/respondent

Procedural Posture

Appeal (rolled Up Application for Permission to Appeal and Appeal) / Court of Appeal Judgment Following Refusal of Permission to Appeal by High Court

Legal Issues

  1. 1 Does section 68(4) of the Arbitration Act 1996 deprive the Court of Appeal of jurisdiction to hear an appeal against a costs order made following a section 68 application?
  2. 2 Should the costs order be made in sterling or naira, considering the indemnity principle and the currency in which the liability was incurred?

Ratio Decidendi

Section 68(4) of the Arbitration Act 1996 does not deprive the Court of Appeal of jurisdiction to hear an appeal against a costs order made following a section 68 application, as such costs orders are made under the Senior Courts Act 1981 and CPR 44.2, not under section 68. The correct currency for a costs order is the currency in which the liability to the solicitors was incurred and paid, which in this case is sterling, regardless of the source of funds or internal currency conversions by the paying party.

Court Disposition

Permission to appeal granted; appeal dismissed.

Orders

  • P&ID granted permission to appeal on the currency of the costs order.
  • Appeal dismissed; costs order to remain in sterling.