FOREIGN JURISDICTION CLAUSES AND THE MARITIME JURISDICTION OF THE FEDERAL HIGH COURT

Abstract

As part of the doctrine of freedom of contract, parties to a contract may freely agree to the law applicable to their contract in the event of a dispute. At common law, such agreement will, except for good reason, and subject to the discretion of the court be respected and enforced by the court. In Nigeria, section 20 of the Admiralty Jurisdiction Act has departed from this common law position, mandating the Federal High Court in maritime matters and causes to assume jurisdiction over contractual disputes notwithstanding foreign jurisdiction clauses contained in such contracts, provided such contracts have some connection to Nigeria. This paper examines the nature of foreign jurisdiction clauses at common law, the position under Nigerian law and the changes introduced by section 20 of the Admiralty Jurisdiction Act. It argues that beyond having a connection to Nigeria in accordance with section 20 of the Admiralty Jurisdiction Act, once a maritime contract involves a Nigerian registered ship, the Federal High should assume jurisdiction to entertain and determine disputes arising therefrom irrespective of the existence of a foreign jurisdiction clause in the maritime contract. It suggests that the changes made under section 20 of the Admiralty Jurisdiction Act should be extended beyond maritime contracts to all other contracts having some connection to Nigeria in respect of which jurisdiction was by the contract of parties vested in a foreign forum.