The Court of Appeal, Abuja Division, has dismissed a multi-billion naira interlocutory appeal filed by Shell Nigeria Exploration and Production Company Limited (SNEPCo) against Martreach Logistics Ltd, over the appointment of a Dock Labour Employer at the Bonga On/Offshore Terminal.
In a judgment delivered by Justice Balkisu Bello Aliyu, the court affirmed the earlier ruling of the High Court of the Federal Capital Territory (FCT), which had assumed jurisdiction over the case.
The dispute centres on a claim by Martreach Logistics Ltd that it was legally appointed as a stevedoring service provider for a ten-year term starting January 2013.
SNEPCo raised several technical and jurisdictional challenges, all of which were resolved in favour of the Martreach Logistics Ltd.
The Appellant argued the matter was a maritime claim that should fall under the exclusive jurisdiction of the Federal High Court. However, Justice Aliyu ruled that the appointment of stevedores does not fall under the Admiralty Jurisdiction Act.
The lawsuit involves substantial financial demands, including: N36.9 billion in unpaid royalties. N2.1 billion in pre-operational costs. N25 billion in general and exemplary damages.
The court rejected arguments that the legal processes were served incorrectly, noting that SNEPCo counsel had already entered an appearance and provided a local address within the court’s jurisdiction.
Justice Aliyu held that the Martreach Logistics Ltd suit disclosed a reasonable cause of action and that determining the validity of the contract at this preliminary stage would be premature.
”It will amount to deciding the substantive suit at the preliminary stage to determine this issue which neither the trial Court nor this Court should do,” the Justice stated.
The appeal was dismissed with a cost of N500,000 awarded to the 1st Respondent, allowing the substantive case to proceed at the lower court.