London Court Dismisses P&ID’s Appeal, Affirms £43m Costs Award to Nigeria.
An appeal by Process and Industrial Development, a Cayman Island-based firm, over the currency with which to pay Nigeria’s legal cost in the protracted suit, has been thrown out by a court in England.
Justice Julian Flaux, with the backing of two other judges, maintained before him that P&ID should pay $43 million in legal costs and disbursements to Nigeria. He reiterated that the payment of the award had to be paid in pounds sterling, which were the grounds of appeal advanced by P&ID.
This comes as the landmark decision after the recent victory which Nigeria made, in a case stretching over ten years ago. Last month, however, the court overturned an award of $11 billion in damages against it, which was granted in December in favor of P&ID in a breach of contract case. Nigeria advanced, and was successful in proving, that based on bribery, the underlying contract was tainted, while P&ID was seeking to benefit from the same.
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In the first instance, the London Court of International Arbitration had awarded $6.6 billion against Nigeria to P&ID in 2017, ruling that the country had failed to meet its side of the contractual deal. With accruable interest, the judgment grew to $11 billion, which had cleared the way for the seizure of Nigerian assets should the country default on its obligation to pay.
Nigeria’s legal team was at the forefront with a very convincing case that the contract was a product of corruption; P&ID had bribed officials to award it a construction contract in 2010. The court agreed and further condemned P&ID and its legal representatives for having pursued profits at the expense of ethical and legal standards.
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It is the latest ruling that reinforces the need for integrity in international contracts and helps to rid business worldwide of corruption. Successful defense of Nigeria against what has been adjudged a fraudulent contract sets the stage for similar future legal battles with renewed emphasis on accountability.
