Tuesday 7 May 2019

Foreign Jurisdiction Clauses in Nigeria: What You Need to Know

Foreign Jurisdiction Clauses in Nigeria: What You Need to Know

More and more foreign investors have been growing increasingly concerned over foreign jurisdiction clauses prevailing in Nigeria. As much as many have been interested in expanding their businesses and investments, they worry about how the Nigerian courts will decide as to whose jurisdiction will prevail over their business ventures. This is a notion that is truly understandable as there’s always a possibility that they will honor the agreement between parties or if they decide to enforce foreign jurisdiction in Nigeria. You need to hire any of the best Intellectual Property Lawyers in Nigeria for fast and efficient proceeding of the issues.

If for example one party is based in London and another is based in Nigeria, they will naturally have an international contract that dictates all the terms and clauses of their agreement. Now, should there be a dispute as a result of one party’s breach or perhaps differences in the course of business that will require proper mediation to come to a proper resolution that will be fair to all concerned?
In the same example where London is the foreign party and Nigeria is the local party, let’s assume that they have come to a dispute regarding concern over shipping of goods from London to Nigeria, where the provider from London was set to ship 5000 crates of tea to Nigeria.

One of the most essential points to note is if their bill of lading specifically mentions in its clauses that should there be a dispute arising from the bill of lading, the carrier’s country of origin and the law that governs over it should apply.

  • As a dispute has been established as an essential breach of contract, the defendant’s party in Nigeria may seek action through the Federal High Court in the country to counter the foreign jurisdiction clause.

  • In this dispute between these two parties, the following will be taken into consideration by the Nigerian court to decide jurisdiction to apply a stay in favor of the Nigerian defendant:
    Is it within the 1-year limitation period stipulated in the Hague rule?
    Who holds the burden of proof?

  • Which country holds/situates the facts or evidence that is readily accessible? This includes the relative expense and convenience of trial.

  • Are the parties’ desire to hold foreign jurisdiction genuine and not because it holds advantages to their claim?

  • Will the plaintiff experience prejudice in either court because of the possibility of losing security over the claim, enforcement of the final, time-bar restrictions, and any other forms of discrimination that may or will result in an unjust trial.

Given the circumstances and other factors that the Court may consider relevant to the case, the Court may order it appropriate to disregard or null the parties’ agreement and choice of a foreign jurisdiction. In addition to that, Tejulaw is one of the leading law firms in Lagos that has some of the best Intellectual Properties Attorney in Nigeria to handle issues related to  Foreign jurisdiction clauses.

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