CASE DIGEST - ADMIRALTY: ACTION FOR WRONGFUL ARREST; ONLY THE OWNER/ DEMISE/CHARTERER HAVE LEGAL CAPACITY.

CASE DIGEST - ADMIRALTY: ACTION FOR WRONGFUL ARREST; ONLY THE OWNER/DEMISE/CHARTERER HAVE LEGAL CAPACITY.

OAN OVERSEAS AGENCY NIGERIA LTD. v. BROMVEN ENERGY TRADING LTD. & 2 ORS.

SUPREME COURT OF NIGERIA

(PETER-ODILI; EKO; GARBA; SAULAWA; ABUBAKAR, JJ.SC)

By an admiralty action, Oan Overseas Agency Nigeria Ltd. (Appellant) claimed against Bromven Energy Trading Ltd. & 2 Ors. (Respondents) at the Federal High Court, the sum of US$1,986,939.97 as an outstanding debt against the 1st Respondent for port and cargo dues and ships charges and agency fees, as well as interest on the said sum. e Appellant also by a motion ex-parte, requested an Order for the arrest/detention of the Vessel MT "Ocean Success" and the Cargo of 15,300 MT of premium Motor Spirit (PMS) on board the Vessel MT "Ocean Success" which in the reasonable contemplation of the Appellant were the only known assets of the 1st Respondent, of which the trial Court granted pending the provision of a bank guarantee from a reputable Bank in Nigeria to secure the claim of the Appellant Flowing from this, the 1st Respondent  filed an application for the release of the MT "Ocean Success" and Cargo of 15,300 MT of Premium Motor Spirit on board the vessel which was detained by Order of the trial Court, and also provided a bank guarantee from Ecobank of Nigeria Plc. to secure the claim of the appellant, and on this basis, both the vessel, MT "Ocean Success" and Cargo of Premium Motor Spirit (PMS) were released from arrest. The 1st Respondent subsequently filed a statement of defence and counterclaimed for the sum of US$400,000.00 being charter costs for the 5 days for which the ship was arrested at the rate of  S$80,000.00 per day; US$9,500.00 being the cost of issuing Bank Guarantee and interest of 18% being Central Bank of Nigeria official rate on the said sum, and postjudgment
interests on the sums claimed. At the conclusion of trial, the trial Court granted the claims of the Appellant and dismissed the 1st Respondent's counterclaim.