AFRICA FINANCE CORPORATION & Ors v AITEO EASTERN E & P COMPANY LIMITED

AFRICA FINANCE CORPORATION & Ors v AITEO EASTERN E & P COMPANY LIMITED

Substantial delay in seeking anti-suit injunction was reasonably explained by ongoing restructuring negotiations, and no progress was made in Nigerian proceedings on the merits during the delay. Lenders did not waive arbitration rights under Nigerian law by appealing. No strong reason exists to refuse anti-suit injunction; final relief granted. Grounds for setting aside interim injunction not sufficiently grave; ex parte procedure justified.

Parties
Claimant: Africa Finance Corporation; Claimant: Ecobank Nigeria Limited; Claimant: Fidelity Bank PLC; Claimant: First Bank of Nigeria Limited; Claimant: Guaranty Trust Bank PLC; Claimant: Shell Western Supply and Trading Limited; Claimant: Sterling Bank PLC; Claimant: Union Bank of Nigeria PLC; Claimant: Zenith Bank PLC; Defendant: Aiteo Eastern E & P Company Limited
Jurisdiction
England and Wales
Judgment Date
01 April 2022
Procedural Posture
Arbitration Claim / Final Determination of Anti Suit Injunction and Application to Set Aside Interim Injunction
Outcome
Final anti-suit injunction granted; application to set aside interim injunction refused.
Legal Topics
Anti Suit Injunctions, Arbitration Agreements, Delay in Seeking Relief, Waiver of Arbitration Rights, Comity, Jurisdiction Challenges
Arbitration Commercial Law Banking Law Anti Suit Injunctions Arbitration Agreements Delay in Seeking Relief Waiver of Arbitration Rights Comity +1 more

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Parties

Africa Finance Corporation

Claimant

Ecobank Nigeria Limited

Claimant

Fidelity Bank PLC

Claimant

First Bank of Nigeria Limited

Claimant

Guaranty Trust Bank PLC

Claimant

Shell Western Supply and Trading Limited

Claimant

Sterling Bank PLC

Claimant

Union Bank of Nigeria PLC

Claimant

Zenith Bank PLC

Claimant

Aiteo Eastern E & P Company Limited

Defendant

Procedural Posture

Arbitration Claim / Final Determination of Anti Suit Injunction and Application to Set Aside Interim Injunction

Legal Issues

  1. 1 Whether delay in seeking anti-suit injunction constitutes strong reason to refuse relief
  2. 2 Whether Lenders waived arbitration rights by appealing in Nigerian courts
  3. 3 Whether anti-suit injunction should be granted to enforce arbitration agreements

Ratio Decidendi

Substantial delay in seeking anti-suit injunction was reasonably explained by ongoing restructuring negotiations, and no progress was made in Nigerian proceedings on the merits during the delay. Lenders did not waive arbitration rights under Nigerian law by appealing. No strong reason exists to refuse anti-suit injunction; final relief granted. Grounds for setting aside interim injunction not sufficiently grave; ex parte procedure justified.

Court Disposition

Final anti-suit injunction granted; application to set aside interim injunction refused.

Orders

  • Defendant restrained from continuing Nigerian FHC Proceedings and from bringing claims arising out of Facility Agreements in any forum other than London-seated ICC arbitration.
  • Declaratory relief granted confirming arbitration agreements.