TheCable

On Monday, Nigeria finally succeeded in halting the enforcement of the $11 billion arbitration award in favour of P&ID after over five years of legal fireworks.

Robin Knowles, justice of the Commercial Courts of England and Wales, delivered the judgement by email upholding Nigeria’s prayer on the ground that the award was obtained by fraud.

In making his determination, Knowles said: “In the circumstances and for the reasons I have sought to describe and explain, Nigeria succeeds on its challenge under section 68. I have not accepted all of Nigeria’s allegations. But the Awards were obtained by fraud and the Awards were and the way in which they were procured was contrary to public policy.

“What happened in this case is very serious indeed, and it is important that section 68 has been available to maintain the rule of law.

“Section 68 (3) provides: ‘(3) If there is shown to be serious irregularity affecting the tribunal, the proceedings or the award, the court may — (a) remit the award to the tribunal, in whole or in part, for reconsideration, (b) set the award aside in whole or in part, or (c) declare the award to be of no effect, in whole or in part. The court shall not exercise its power to set aside or to declare an award to be of no effect, in whole or in part, unless it is satisfied that it would be inappropriate to remit the matters in question to the tribunal for reconsideration.’

“I was asked by Lord Wolfson KC in closing that should my judgment conclude in favour of Nigeria, as it does, to leave over the question of the order the Court should make so that the parties have the opportunity to present argument once they have considered the judgment. I respect that request and will hear that argument as soon as that can be arranged.”

Download text of the judgement here