CHOICE OF FOREIGN FORUM FOR COMMERCIAL ARBITRATION IN ADMIRALTY CONTRACT IN NIGERIA, UNITED KINGDOM, CANADA AND UNITED STATES OF AMERICA

Abstract

Admiralty contract is a contract pertaining to contract of carriage by sea or sea transportation. In such a contract parties could agree on settlement of any dispute between them by means of arbitration either locally or in a foreign country. Such choice of forum for arbitration in admiralty contract is very sensitive in Nigeria in view of the provisions of the Admiralty Jurisdiction Act, 1991. Where the venue chosen is local or within the country, there is no problem. However, where the parties choose foreign venue for arbitration for such a contract, the law provides that such a choice ousts the jurisdiction of the courts of the land. Therefore, where any such case is brought before the court for a stay of proceedings for the parties to explore the arbitration in a foreign forum, the court would not grant such a stay. The court in refusing to grant such a stay would assert that the choice of such a foreign venue ousts the jurisdiction of the court. This article addresses this issue to ascertain whether indeed the jurisdiction of the court is ousted by such a choice and so the courts in Nigeria are right to refuse a stay of proceedings to pursue such an arbitration in a foreign venue. Having thoroughly gone through similar provisions and decided cases in other jurisdictions such provisions do not oust the jurisdiction of a local court except in certain exceptional circumstances which could affect the case before such an arbitration overseas could be concluded. Consequently, it is recommended that the courts in Nigeria should change their position or stand on this issue and deal with each such case based on its peculiar facts to ascertain whether or not the jurisdiction of the court is ousted by such a provision in that case.