Facts:

A dispute arose out of a Contract Service Agreement between Chevron Nigeria Limited (“the claimant”) and Total Engineering Services Team Inc (“the defendant”). Mr. Danny Bufkin an employee of Total was abducted and tortured for eight (8) days by the local Ijaw tribe while on a supply boat. The Claimant eventually paid a ransom in exchange for his freedom and upon his release Mr. Bufkin instituted an action in the United States against the Claimant on grounds of negligence.

The Claimant demanded that the Defendant (in the United States Suit) take over its defence and settle the case on its behalf under the indemnity provisions in the contract. The Claimant and the Defendant eventually settled Mr. Bufkin’s claim out of court. The Claimant sought reimbursement from the Defendant of all amounts it expended in defense and settlement of Mr. Bufkin’s suit.