A US court in Idaho district has ordered an American company, Domtec to pay BUA International Limited £343,750.91 in arbitral award.
The United States District Court for the District of Idaho gave the order to Domtec International LLC, an Idaho-based company specialising in the building of concrete domes.
According to court papers obtained by PREMIUM TIMES, Domtec has 21 days from 1 April, the date the order was issued, to comply failing which “the court will, upon notice from petitioners, issue writs of execution and/or garnishment on Domtec’s assets.”
BUA International is a trading company undertaking the importation of iron and steel on behalf of BUA Group, the conglomerate controlled by the Nigerian industrial magnate Abdul Samad Rabiu with interests in cement manufacturing, food processing, ports & terminal services, iron & steel and real estate.
The court first received a petition in April 2023 from BUA International and NOM (UK) Limited, which deals in the procurement of equipment and materials and serves as an agent to the company.
The petition requested the court to confirm a foreign arbitral award, rendered in the British Virgin Islands five months earlier, and enter an executable judgement in favour of the two and against Domtec.
On 10 November 2022, the foreign international arbitration award was originally issued in Tortola, British Virgin Islands by sole arbitrator Michael J. Fay KC in favour of the petitioners and against Domtec based on a written supply agreement between Domtec and NOM.
According to details of court documents, the general terms and conditions of the supply agreement allowed for binding arbitration of the underlying dispute between the petitioners and Domtec.
Supply Agreement
The (supply agreement) contract required Domtec to design and build sugar domes on BUA’s property in Lagos and Port Harcourt.
NOM entered into the supply agreement as an agent for BUA, with one of the court documents noting that various disputes stemming from the agreement arose between the parties.
The document observed that on 6 April 2021, the counsel to NOM and BUA suggested that Domtec failed to comply with a clause in the supply agreement.
“In the event that the parties do not agree to mediation or the dispute has not been settled within six (6) weeks (or such other period as may be agreed in writing between the parties) after the appointment of the mediator, the dispute may be referred by either party to arbitration in accordance with the provisions of the Laws of England and Wales, with the seat of the arbitration to be based in the British Virgin Islands,” the court paper stated, quoting the supply agreement.
The agreement permitted the parties to arbitrate any dispute that could not be timely resolved through mediation before an arbitrator in the British Virgin Islands.
“When such a dispute arose in 2022, arbitration proceedings were properly initiated by Domtec against the petitioners,” the court document stated.
Domtec “did not present a claim (whether in its pleadings, its evidence or in submissions) that it complied with clause 2.2.3 by the provision of the documents sent to the respondents on 15 March 2022 and 25 March 2022,” Mr Fay KC said in the document containing the original arbitral award.
Apart from ordering Domtec to pay the petitioners £343,750.91, the arbitrator also directed the company to pay them interest compounded monthly on that amount at two per cent over the Bank of England bank rate from time to time from the arbitral award date until payment is made.
In addition, Domtec would also pay the petitioners $42,560 (for tribunal fees and costs) as well as interest compounded monthly on that sum at 2 per cent over the US Federal Reserve interest range from the date of the arbitral award until payment.
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On 11 October 2023, the US District Court for the District of Idaho granted the petition to confirm the foreign arbitral award and for entry of judgment.
“Domtec must pay petitioners by the arbitral award and as outlined in the judgment in this case,” the court said.
Afterwards, BUA International and NOM filed a motion for an award of attorney’s fees, noting that Domtec should be made to pay the fees and costs involved in their effort related to the confirmation process. With the petitioners yet to receive payment of the arbitration award two months later, they filed an application for writs of execution and garnishment to compel Domtec to pay its debt.
In its 1 April ruling, the court denied the motion by BUA International and NOM, saying “there are no grounds entitling petitioners to an award of fees and costs for its efforts in this court.”
“Before issuing writs of execution and/or garnishment, the court will allow Domtec a final opportunity to comply with the court’s order and judgement,” the court said
The court ruled that failure by Domtec to meet its payment obligation in the next 21 days would leave it with no option but to issue the requested writs upon notice from the petitioners.
