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CITY ENGINEERING NIGERIA LTD VS FEDERAL HOUSING AUTHORITY

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CITY ENGINEERING NIGERIA LTD VS FEDERAL HOUSING AUTHORITY

Legalpedia Citation: (1997) Legalpedia (SC) 13101

In the Supreme Court of Nigeria

Thu Jul 17, 1997

Suit Number: SC. 204/1992

CORAM


GEORGE ADESOLA OGUNTADE JUSTICE, SUPREME COURT

ANTHONY NNAMAZIE ANIAGOLU, JUSTICE, SUPREME COURT

ABUBAKAR BASHIR WALI JUSTICE, SUPREME COURT

PIUS OLAYINWOLA ADEREMI, JUSTICE, SUPREME COURT

MICHAEL EKUNDAYO OGUNDARE JUSTICE, SUPREME COURT

KUDIRAT MOTONMORI OLATOKUNBO KBKERE-EKUN, JUSTICE, SUPREME COURT


PARTIES


CITY ENGINEERING NIGERIA LTD APPELLANTS


RESPONDENTS


AREA(S) OF LAW



SUMMARY OF FACTS

The parties entered into a contract with a clause to submit all disputes to arbitration. A dispute eventually arose between the parties


HELD


Appeal dismissed.


ISSUES


When does the statutory period of limitation start to run for the purpose of the enforcement of an arbitration award; is it at the date of the accrual of the original cause to action or is it at the date of the arbitral award? ?


RATIONES DECIDENDI


PERIOD OF LIMITATION


The period of limitation is deemed to run after the date of the award only when a party has by his own contract expressly waived his right to sue as soon as the cause of action has occurred. If there is no such Scott v. Avery clause, the limitation period begins to run immediately. A party is, however, precluded from setting up such an agreement as a defence if he has waived his right to insist on arbitration as a condition precedent. PER OGUNDARE, JSC


EFFECT OF SUBMITION TO ARBITRATION ON JURISDICTION OF COURT


Any agreement to submit a dispute to arbitration, such as the one referred to above, does not oust the jurisdiction of the court. Therefore either party to such an agreement may, before a submission to arbitration or an award is made, commence legal proceedings in respect of any claim or cause of action included in the submission. PER OGUNDARE, JSC


CASES CITED


Murmansk State Steamship Line v. Kano Oil Millers Ltd. (1974) 12 SC 1 Obi Obembe v. Wemabod Estates Ltd. (1977)5 SC. 115 Kano State Urban Dev. Board v. Fanz Construction Co. Ltd. (1990) 4 NWLR (Pt. 142) 1Thompson v. Charnock (1799) 8 Term Rep. 139Toronto Railway v. National etc. Insurance Co. (1914) 20 Com. Cas. 1. Heyman v. Darwins Ltd. (1942) AC 336, at p.377Pegler v., Railway Executive (1948) 1 All ER 559; (1948) AC 332Bremer Oeltransport G.mb.H. v. Drewry (1933)1 KB 753.Scott v. Avery’ (1856) 5 H.L. Cas. 811?


STATUTES REFERRED TO


Arbitration and Conciliation Act No.11 of 1988,Arbitration Law Cap. 10 Laws of Lagos State 1973High Court of Lagos State Rules, 1974Supreme Court (Bench and Division) Rules, Cap. 62Limitation Law, Cap 70 Laws of Lagos State 1973?


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