Facts:

The appellants are the ship and its agents who were defendants at the trial court while the respondents are receivers and the plaintiff at the trial court. The respondent commenced an action against the appellants claiming jointly and severally the sum of $100,000 USD or its Naira equivalent being special and general damages for the loss of 4,535 bags of rice covered by three bills of lading. 

The appellants applied for a stay of proceedings pending reference to arbitration based on clause 7 of the bill of lading: 

“Any dispute arising under this bill of lading shall be referred to arbitration in London. The unamended centrecon arbitration clause will apply.” 

The respondent opposed the application and relied on section 20 of the Admiralty Jurisdiction Act, 1991: – 

“Any agreement by any person or party to any cause, matter or action which seeks to oust the jurisdiction of the court shall be null and void, if it relates to any admiralty matter falling under this Decree…” 

The trial court (Jinadu J) in the Federal High Court Lagos found that there was a provision for reference to arbitration, but nevertheless refused the application to stay all proceedings pending a reference to arbitration. The trial court decision was predicated on the effect of the provisions of s. 20 of Admiralty JurisdictionAct,1991. 

The appellants appealed to the Court of Appeal