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UK Supreme Court Rejects P&ID’s Currency Request on Costs Order
In a significant legal development, the UK Supreme Court has delivered a decisive blow to P&ID, rejecting their attempt to overturn a crucial aspect of a costs order. This ruling, dated October 22, 2025, pertains to set-aside proceedings initiated by Nigeria, specifically addressing the currency of the costs order. The Supreme Court’s decision solidifies Nigeria’s position and reinforces established legal principles in international arbitration.
The Core of the Dispute: Currency of Costs
The heart of P&ID’s appeal to the UK Supreme Court centered on the currency in which costs awarded to Nigeria should be paid. Following Nigeria’s successful challenge to the arbitral award, a costs order was made in its favor. P&ID sought to have this order converted into a different currency, a move that would have potentially altered the financial implications for both parties.
Nigeria’s Legal Triumph in Set-Aside Proceedings
Nigeria’s legal team mounted a robust defense, arguing that the original currency specified in the costs order was appropriate and legally sound. The set-aside proceedings themselves were a critical juncture, where Nigeria sought to invalidate the multi-billion dollar arbitral award obtained by P&ID. The success in these proceedings, leading to the costs order, was a major victory. P&ID’s subsequent attempt to manipulate the financial terms of this victory has now been firmly rebuffed.
Understanding the Implications of the Supreme Court’s Ruling
The UK Supreme Court’s refusal to alter the currency of the costs order has several important implications:
- Reinforcement of Legal Precedent: The decision underscores the finality and enforceability of costs orders made by courts, particularly in high-stakes international arbitration cases.
- Financial Clarity for Nigeria: Nigeria can proceed with enforcing the costs order in its original currency, providing greater certainty in its financial recovery.
- Deterrent to Future Appeals: This outcome may serve as a deterrent to parties seeking to prolong legal battles through appeals on procedural or financial technicalities after an initial judgment.
P&ID’s Failed Bid for Reversal
P&ID’s request to reverse the decision on the currency of the costs order was based on arguments that the Supreme Court found unconvincing. The court’s determination signifies a commitment to upholding the integrity of the arbitration process and the judgments rendered within it. This rejection marks another setback for P&ID in their long-standing legal dispute with Nigeria.
The Role of Currency in International Arbitration Costs
The choice of currency for costs orders in international arbitration can be a critical factor. It can impact the actual amount payable due to fluctuating exchange rates. Courts and tribunals typically consider several factors when determining the appropriate currency, including:
- The currency of the arbitration agreement.
- The currency in which the dispute was primarily conducted.
- The currency of the parties’ principal places of business.
- The currency that best reflects the economic reality of the losses incurred.
In this instance, the UK Supreme Court has affirmed that the existing determination of the costs order currency was just and appropriate. This ruling aligns with the principles of fairness and predictability in international legal proceedings.
Nigeria’s Continued Pursuit of Justice
Nigeria has consistently maintained its stance against what it terms a fraudulent contract and award. This Supreme Court decision further bolsters Nigeria’s position in its ongoing efforts to resolve the P&ID saga. The country’s legal strategy has focused on demonstrating the egregious nature of the contract and the subsequent award.
Looking Ahead: The Future of the P&ID Case
While this ruling specifically addresses the currency of the costs order, it is a significant development within the broader P&ID arbitration saga. Nigeria’s success in the set-aside proceedings and the subsequent affirmation by the Supreme Court on costs are crucial steps in its quest for justice. For further insights into the complexities of international arbitration and set-aside proceedings, resources such as the International Bar Association (IBA) Arbitration Committee and the International Chamber of Commerce (ICC) offer valuable information and case studies.
The UK Supreme Court’s decision on the currency of the costs order in the P&ID case is a clear indication of its stance. Nigeria’s legal efforts have once again proven successful, reinforcing the integrity of the judicial process in international disputes.
UK Supreme Court P&ID currency costs order Nigeria arbitration set-aside proceedings legal ruling October 2025