Supreme Court Ruling on Brittania-U vs. Chevron and Others | ClipTV Online

On June 21, 2024, the Supreme Court delivered a landmark judgment in the long-standing appeals filed by Brittania-U Nigeria Limited against Chevron Nigeria Limited, Seplat Petroleum Co. Ltd, and Chevron USA. The appeals, identified as SC/1103/2018, SC/1104/2018, and SC/1105/2018, stemmed from a previous ruling by the Court of Appeal which dismissed Brittania-U’s claims, asserting no reasonable cause of action against the respondents.

Case Background

• Initial Ruling: The Federal High Court ruled in favor of Brittania-U, dismissing the preliminary objections raised by Chevron Nigeria Limited, Seplat Petroleum, and Chevron USA regarding the competence of the suit.
• Court of Appeal: The decision was overturned by the Court of Appeal in January 2018, stating the Federal High Court lacked jurisdiction and that Brittania-U’s suit disclosed no reasonable cause of action.
• Supreme Court Appeal: Dissatisfied, Brittania-U appealed to the Supreme Court, challenging the Court of Appeal’s decision.

Supreme Court Judgment

The Supreme Court, in a lead judgment delivered by Justice Habeeb Adewale Abiru, ruled partly in favor of Brittania-U. Key points of the judgment include:

• Reasonable Cause of Action: The Supreme Court agreed that Brittania-U’s case disclosed a reasonable cause of action.
• Jurisdiction: The Federal High Court lacked jurisdiction to entertain the suit, requiring a transfer to the Lagos State High Court.
• Order for Transfer: The case was ordered to be transferred to the Lagos State High Court for an accelerated hearing on its merits.
• Timeframe for Defense: Respondents were given 30 days to file their defense once the case is transferred.
• Binding Decision: The decision in this appeal applies to the related appeals involving Seplat and Chevron USA.

Pronouncements

Justice Abiru stated:
“In conclusion, this Court finds some merit in this appeal, and it succeeds in parts. The judgment of the Court of Appeal Lagos division delivered on the 19/1/2018 in Appeal No. CA/L/557/14 is hereby set aside, save for the finding that the Federal High Court lacks the requisite jurisdiction to entertain the suit of the Appellant. Furthermore, an order is hereby made transferring the case of the Appellant in suit No. FHC/L/CS/1171/2013 from Federal High Court Lagos division to Lagos State High Court for hearing and determination on merit. It is further ordered that the Respondents shall within 30 days of the transfer of the case being effected file their respective response to the case of the Appellant at the High Court of Lagos State and the High Court of Lagos State shall accord the matter a double accelerated hearing.”

Costs

The Supreme Court ruled that each party would bear its respective costs of the appeal.

This ruling is significant as it revives Brittania-U’s claims regarding its successful bid and payment for Chevron’s OML 52, 53, and 55 in 2012, while emphasizing the necessity for a proper judicial forum to hear and determine the merits of the case.