The Federal Republic Of Nigeria v Process & Industrial Developments Limited

The Federal Republic Of Nigeria v Process & Industrial Developments Limited

The arbitral awards in favour of P&ID were obtained by fraud and contrary to public policy because (1) P&ID procured the GSPA by bribing Nigeria’s official (Mrs Grace Taiga), (2) P&ID knowingly gave false evidence to the arbitral tribunal to conceal the bribery, (3) P&ID continued to bribe Mrs Taiga during the arbitration to suppress the truth, and (4) P&ID improperly retained Nigeria’s privileged legal documents to monitor and exploit Nigeria’s legal strategy. These irregularities caused substantial injustice to Nigeria, as the arbitration would have been fundamentally different had the truth been known. Nigeria did not lose its right to object under section 73, as it could not with...

Parties
Claimant: The Federal Republic of Nigeria; Defendant: Process & Industrial Developments Limited
Jurisdiction
England and Wales
Judgment Date
11 January 2023
Procedural Posture
Arbitration Claim (challenge to Arbitral Award) / Final Judgment on Section 68 Challenge (serious Irregularity/fraud/public Policy)
Outcome
Application to set aside arbitral awards allowed; awards set aside for serious irregularity (fraud/public policy).
Legal Topics
Setting Aside Arbitral Awards, Serious Irregularity (section 68 Arbitration Act 1996), Bribery and Corruption, Public Policy in Arbitration, Legal Professional Privilege, Remedies for Fraud in Arbitration, Jurisdiction of Arbitral Tribunal, Disclosure and Discovery, State Contracts, Enforcement of Arbitral Awards
Arbitration Commercial Law Public Procurement Contract Law Fraud and Corruption Setting Aside Arbitral Awards Serious Irregularity (section 68 Arbitration Act 1996) Bribery and Corruption +7 more

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Parties

The Federal Republic of Nigeria

Claimant

Process & Industrial Developments Limited

Defendant

Procedural Posture

Arbitration Claim (challenge to Arbitral Award) / Final Judgment on Section 68 Challenge (serious Irregularity/fraud/public Policy)

Legal Issues

  1. 1 Whether the arbitral awards in favour of P&ID were obtained by fraud or contrary to public policy under section 68(2)(g) Arbitration Act 1996
  2. 2 Whether Nigeria lost its right to object under section 73 Arbitration Act 1996 (reasonable diligence)
  3. 3 Whether substantial injustice was caused by the irregularities

Ratio Decidendi

The arbitral awards in favour of P&ID were obtained by fraud and contrary to public policy because (1) P&ID procured the GSPA by bribing Nigeria’s official (Mrs Grace Taiga), (2) P&ID knowingly gave false evidence to the arbitral tribunal to conceal the bribery, (3) P&ID continued to bribe Mrs Taiga during the arbitration to suppress the truth, and (4) P&ID improperly retained Nigeria’s privileged legal documents to monitor and exploit Nigeria’s legal strategy. These irregularities caused substantial injustice to Nigeria, as the arbitration would have been fundamentally different had the truth been known. Nigeria did not lose its right to object under section 73, as it could not with...

Court Disposition

Application to set aside arbitral awards allowed; awards set aside for serious irregularity (fraud/public policy).

Orders

  • Awards set aside under section 68(2)(g) Arbitration Act 1996;
  • Further argument to be heard on precise form of relief and consequential orders.