The Court of Appeal allowed review for injustice, modified the lower judgment, and ordered Green House Rwanda Ltd to pay PRO WATER RWANDA Plc for greenhouse works.
By choosing to litigate in court and not raising the arbitration clause as a jurisdictional objection, both parties tacitly amended their contract and waived the right to arbitration. Therefore, the lower courts had jurisdiction, and the Court of Appeal lacks jurisdiction to entertain the second appeal.
The Court of Appeal held that both parties had tacitly waived the arbitration clause by litigating in court without raising jurisdictional objections, and thus the lower courts had jurisdiction. The second appeal was inadmissible as the only ground advanced (lack of jurisdiction) was unfounded. Attorney fees and litigation costs were awarded to the respondents, but in reduced amounts due to lack of evidence of higher expenses.
The High Court held that the lower courts erred in entertaining and deciding a claim that had already been adjudicated with finality in prior criminal proceedings between the same parties on the same subject matter. The principle of res judicata barred the respondent from re-litigating the same issues by a different procedural route. The applicants' second appeal was therefore allowed, the lower court judgments were set aside, and the respondent was ordered to pay damages for unnecessary litigation.
The Supreme Court held that the transport contract’s jurisdiction clause gave Antwerp courts exclusive jurisdiction, so Rwandan courts lacked jurisdiction.