Years After, Lafarge Africa, Cement Manufacturing And Marketing Firm Yet To Pay Judgment Sum To Transnational Haulage

Years After

OpenLife Nigeria reports that nearly four years after an Arbitration Court ordered the cement manufacturing and marketing firm, Lafarge Africa Plc to pay a sum of N58,756,500 to a logistics company, Transnational Haulage Limited after a judgment on breach of contract, the French firm is yet to comply with the judicial order.

The order was further affirmed two years ago by the Lagos High Court, Lagos Division following an appeal by Lafarge when it rejected the judgment of the Arbitration.

However investigations and findings revealed that Lafarge had again gone to the Court of Appeal, Lagos Division, after expressing displeasure with the affirmation of the Arbitration Panel’s Award by the Lagos High Court.

The appeal filed on the 3rd of March, 2023, is still pending at the Court of Appeal after suffering several adjournments.

The Agreement which would have seen the haulage company responsible for the transportation of cement produced by Lafarge to some parts of Nigeria was signed on August 15, 2016, with an initial five years life-span.

However the matter became subject for litigation, less than one year it took off, after the transport outfit alleged breach of contract by the cement company, prompting it to approach Arbitration as contained in the Agreement.

The two parties represented by their counsel made appearances before the one-woman Arbitration, where they argued their cases.

Findings indicated that before the commencement of arguments at the Arbitration, the two parties had earlier signed an agreement before the Panel submitting to its jurisdiction and its eventual judgment.

At the conclusion of proceedings, the Arbitration awarded the sum of N58,756,500 against Lafarge in favour of Transnational Haulage.

Lafarge however, objected to the Arbitral judgment on the following grounds:
“That the award contained decisions on matters which are beyond the scope of the submission to the Arbitration.

“That the Arbitrator went beyond her jurisdiction”

A judicial analyst, Kingsley Mayokun however faulted Lafarge’s non-compliance with both the judgment of the Panel and the Lagos’ court on the ground that in other climes the cement company ought to first comply at least by first depositing the money with the court while the appeal continues.

The above also formed the thrust of Lafarge’s ground of appeal and argument at the Lagos High Court when it approached the Court on December 14, 2019 where it equally prayed the Court to uphold that it did not breach the Agreement, but rather the logistic company did.

The Appellant made references to some sections of the Nigerian Constitution and other Statues to back its argument before Justice T. A.Oyekan.

Expectedly, the respondent, filed a counter affidavit and cited some constitutional provisions to oppose the claims and prayers of the appellant.

At the end of the proceedings, Justice Oyekan, quoting and relying on some relevant provisions of the Constitution as well as excerpts from the Arbitrator carefully distanced herself from items outside the matters brought before the Panel and limited herself to matters contained in their Papers, and thereafter struck out Lafarge’s appeal.

In the words of the Judge: “On the above reasoning, I refuse the application to set aside the Arbitration award, the Motion on Notice dated 4th December, 2019 to set aside the Final Award fails and is dismissed, and I so hold…”

In conclusion, the Judge declared “It has now become necessary to take urgent steps to enforce the Final Award to enable the Award Creditor/Applicant enjoy the fruits of the Award…

“Accordingly, I hold that the Applicant has fulfilled’ the requirements provided under the law to enforce an Arbitral Award.

“Therefore leave is granted to the Applicant to enforce the Final Award dated 14th November, 2019 published by the Sole Arbitrator, Mrs. Funmi Roberts in regard of the arbitral matter between Transnational Haulage Limited and Lafarge Africa Pic…

“The Award-Creditor’s Motion on Notice dated 3rd March, 2020 succeeds and is granted accordingly.

“Leave is granted to the Award Creditor/ Applicant to enforce the Final Award dated 4th November 2019 entered in favour of the Award Creditor/Applicant against the Award Debtor/Respondent in the sum of N58,756.500 (Fifty-Eight Million., Seven Hundred and Fifty-Six thousand, Five Hundred Naira).

“Simple interest thereto at the rate of 12% per annum from 4th November 2019 until full payment is made which sum is now due and owing to the Award-Creditor/Applicant”.