Court Gives US Company 21 Days to Pay BUA N572 Million or Forfeit Assets

• Nigerian-owned company, BUA, has achieved a remarkable legal victory against an American company in the United States
• According to reports, the US company has been ordered to pay BUA the sum of £343,751 for breach of contract
• The court which gave the order also instructed the company to make the payment within 21 days from the date of the ruling

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

A United States court has mandated an American corporation to remunerate BUA International Limited with £343,750.91 (approximately N572,628,130.56 or N572 million) as per an arbitral decree.

The United States District Court for the District of Idaho issued this directive to Domtec International LLC, an enterprise based in Idaho renowned for its expertise in constructing concrete domes.

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As per court documents accessed by PREMIUM TIMES, Domtec must adhere to this order within 21 days from April 1, the issuance date; otherwise, "the court will, upon notification from the claimants, proceed to issue writs of execution and/or garnishment on Domtec's assets."

BUA International is a trading entity responsible for importing iron and steel for BUA Group, the conglomerate overseen by Nigerian industrialist Abdul Samad Rabiu.

The BUA Group has diversified interests spanning cement manufacturing, food processing, ports and terminal services, iron and steel, and real estate.

Domtec breached supply agreement with BUA

In April 2023, the court was initially presented with a petition from BUA International and NOM (UK) Limited. NOM (UK) Limited specializes in equipment and material procurement and acts as an agent for BUA International.

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The petition sought court confirmation of a foreign arbitral award issued in the British Virgin Islands five months prior and requested the court to issue an enforceable judgment in favour of the two entities against Domtec.

As per court records, the standard terms and conditions outlined in the supply agreement permitted the resolution of disputes through binding arbitration between the petitioners and Domtec.

The contract, pertaining to the design and construction of sugar domes on BUA's properties in Lagos and Port Harcourt, obligated Domtec to fulfil these tasks.

NOM acted as BUA's representative under the supply agreement, with court documents highlighting several disputes arising from the agreement between the involved parties.

Notably, on April 6, 2021, legal counsel representing NOM and BUA alleged Domtec's non-compliance with a clause within the supply agreement.

Domtec to pay BUA

In addition to instructing Domtec to remit £343,750.91 to the petitioners, the arbitrator also mandated the company to pay them monthly compounded interest on that sum at a rate of 2% above the Bank of England bank rate, effective from the date of the arbitral award until full payment is rendered.

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Furthermore, Domtec is obligated to pay the petitioners $42,560, covering tribunal fees and costs, along with monthly compounded interest on that amount at a rate of 2% above the US Federal Reserve interest range, starting from the date of the arbitral award until the payment is fulfilled.

The court decreed that should Domtec fail to fulfil its payment obligation within the stipulated 21-day period, it would be compelled to issue the requested writs upon notification from the petitioners.

Rabiu rejects appointment to Tinubu's finance committee

Meanwhile, Legit.ng previously reported that Rabiu had declined the nomination to join the finance committee established by the All Progressives Congress (APC).

In a statement released by his company on Friday, December 1, 2023, Mr Rabiu expressed his preference for maintaining a non-political stance.

Despite being a close associate of President Bola Tinubu, he opted not to accept the offer to serve on the 34-member finance committee, which includes other business figures and prominent party members.

Source: Legit.ng