Facts:

The Appellant (Plaintiff) via a writ of summons and statement of claim commenced an admiralty action against the Respondents (Defendants) at the Federal High Court, Lagos (trial Court), claiming the sum of United States Dollars $1,986,939.97 as an outstanding debt against the 1st Respondent for port and cargo dues and ships charges and agency fees. The appellant also claimed interest on the said sum of United States Dollars $1,986,939.97. The Appellant also filed a motion ex-parte requesting an Order of 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” both being the only known assets of the 1st Respondent within jurisdiction in the reasonable contemplation of the Appellant at the time of commencement of the proceedings at the trial Court, 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 were detained pursuant to the Order of the trial Court. The 1st Respondent also provided a bank guarantee from Ecobank of Nigeria Plc. to secure the claim of the appellant at the trial Court, 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 US$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 post-judgment interests on the sums claimed.

Trial further commenced, wherein the trial court delivered final judgment on 14th March, 2011, granting the claims of the Appellant and dismissing the 1st Respondent’s counterclaim. Dissatisfied with the judgment, the 1st Respondent appealed to the Court of Appeal. The Court of Appeal allowed the appeal in part: it upheld the trial court’s grant of the Appellant’s claim and granted all the reliefs in the 1st Respondent’s counterclaim. Dissatisfied, the appellant appealed to the Supreme Court. The 1st Respondent cross-appealed against the part sustaining the claim of the appellant.