Obudu Resort: A’Court Reserves Judgment in N3.8bn Award against C’River

Alex Enumah in Abuja

The Court of Appeal in Abuja yesterday reserved judgment in the appeal by Zedici Capital Limited, the firm which remodelled the Obudu Mountain Resort in Cross River State, seeking to enforce its arbitral award.

A three-member panel of the court led by Justice Olabisi Ige announced that judgment has been reserved in the appeal after parties adopted their briefs of argument in the matter.

While Mr. Moses Ofeoshi represented Zedici Limited, Mr. Tawo Tawo, argued on behalf of the Cross River State Government.

Meanwhile the panel approved Ofeoshi’s application to file and serve new list of authorities within three days.

Zedici filed the appeal against the state government and the Attorney-General of the state following the judgment of an FCT High Court in 2019 refusing to affirm the arbitral award to Zedici over its investment accruing to N3.8 billion in the Obudu resort.

In the appeal, the company further contended that the FCT High Court presided by Justice Angela Otaluka erred in law when it held that the replacement of the arbitrator for Cross River State after the withdrawal of its arbitrator, Nella Andem-Rabana (SAN), was not in compliance with the Arbitration and Conciliation Act, 2004.

The major issue being contended is whether the court can unilaterally set aside the arbitral verdict against extant rules of arbitration.

The firm in its four grounds of appeal argues that the high court misdirected itself to presuppose that Zedici appointed an arbitrator for the respondents after their arbitrator withdrew.

“The trial court fails to take cognisance of the relevant provisions of the law relating to the waiver of irregularities in arbitration proceedings,” it averred.

Zedici invoked the arbitration clause after the state government breached the 25-year concession agreement made on September 7, 2017, for the rehabilitation, remodelling, finance, operation, and transfer of the mountain resort in Obanliku under a Public-Private Partnership (PPP) model.

Zedici averred that as a result of the agreement, it invested N3.8 billion fixing all the facilities and providing infrastructure and security at the resort and the host community.

The trial judge had upheld the submission of the state government and the attorney general that the said withdrawal of their arbitrator denied them the opportunity to participate in the arbitration proceedings.