US Court Orders American Business to Pay BUA £343,750

It has been recently announced that an American business has been ordered by a US court to pay an arbitral award of £343,750.91 to BUA International Limited.

The order was granted to Domtec International LLC, an Idaho-based company that specialises in the construction of concrete domes, by the United States District Court for the District of Idaho.

According to court documents, the order was issued on April 1, and Domtec has been given 21 days to comply. If Domtec does not comply, "the court will, upon notice from petitioners, issue writs of execution and/or garnishment on Domtec's assets."

BUA International is a trading company that imports iron and steel on behalf of BUA Group, a conglomerate owned by Nigerian industrialist Abdul Samad Rabiu. The group has strong interests in real estate, ports and terminal services, food processing, cement manufacturing, and iron and steel.

The first petition was filed with the court in April 2023 by BUA International and NOM (UK) Limited. This company acts as the company's agent and deals with purchasing materials and equipment.

The petition asked that the court uphold a foreign arbitral award made five months earlier in the British Virgin Islands and grant the two parties an executable judgement against Domtec.

According to a written supply agreement between Domtec and NOM, the foreign international arbitration award was first rendered in favour of the petitioners and against Domtec on November 10, 2022, in Tortola, British Virgin Islands, by single arbitrator Michael J. Fay KC.

Details of court documents stated that the general terms and conditions of the supply agreement permitted the petitioners and Domtec to settle their underlying dispute through binding arbitration.

About the Supply Agreement

Domtec was mandated by the contract to create sugar dome designs and constructions on BUA's property in Port Harcourt and Lagos.

According to one of the court documents, NOM entered into the supply agreement on behalf of BUA, and the parties developed several disagreements that resulted from the agreement.

According to the document, Domtec was accused of breaking a provision in the supply agreement on April 6, 2021, by the attorneys representing NOM and BUA. 

"If 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 by 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 resolved promptly through mediation with an arbitrator in the British Virgin Islands.

The court document stated, "When such a dispute arose in 2022, arbitration proceedings were properly initiated by Domtec against the petitioners."

Domtec "did not present a claim (whether in its pleadings, its evidence or submissions) that it complied with clause 2.2.3 by providing the documents sent to the respondents on March 15, 2022, and March 25, 2022," Mr. Fay KC said in the document containing the original arbitral award.

The arbitrator mandated that Domtec pay the petitioners £343,750.91 in addition to interest compounded monthly at two percent over the Bank of England bank rate, starting from the date of the arbitral award and continuing until payment is received.

Additionally, Domtec agreed to pay the petitioners $42,560 (for tribunal fees and costs) plus interest compounded monthly from the date of the arbitral award until payment, at two percent over the US Federal Reserve interest rate.

The court document stated, "When such a dispute arose in 2022, arbitration proceedings were properly initiated by Domtec against the petitioners."

Domtec "did not present a claim (whether in its pleadings, its evidence, or submissions) that it complied with clause 2.2.3 by providing the documents sent to the respondents on March 15, 2022, and March 25, 2022," Mr. Fay KC said in the document containing the original arbitral award.

In addition to directing Domtec to pay the petitioners £343,750.91, the arbitrator also mandated that the business pay them interest compounded monthly at two percent over the Bank of England bank rate, starting on the date of the arbitral award and continuing until payment is received.

In addition, Domtec would pay the petitioners $42,560 (for tribunal fees and costs) and interest compounded monthly on that sum at 2% over the US Federal Reserve interest range from the date of the arbitral award until payment.