Currency of Costs Order: UK Supreme Court Rejects P&ID’s Bid

In a significant development for international arbitration and commercial litigation, the UK Supreme Court has delivered a pivotal ruling, rejecting P&ID’s attempt to reverse a previous decision concerning the currency of costs order. This decision, dated October 22, 2025, pertains to set-aside proceedings lodged by Nigeria, further solidifying the nation’s position in this protracted legal battle.

Understanding the Core Dispute: Currency of Costs

The crux of the matter revolved around the specific currency in which costs should be awarded in a legal dispute. When a court or tribunal makes a costs order, it dictates which party is responsible for the legal expenses incurred by the other. The currency in which this order is denominated can have substantial financial implications, especially in cases involving international parties and fluctuating exchange rates.

Nigeria’s Legal Stance and Set-Aside Proceedings

Nigeria initiated set-aside proceedings, a legal mechanism used to challenge and potentially annul an arbitral award. Within these proceedings, the question of the appropriate currency for the costs order became a key point of contention. Nigeria argued for a specific currency, and the initial ruling favored their position.

P&ID’s Appeal to the Supreme Court

P&ID, facing an unfavorable ruling on the currency of costs, sought to appeal to the UK Supreme Court. Their aim was to overturn the decision and have the costs order issued in a different currency, potentially to their financial advantage. The Supreme Court’s ultimate decision, however, dashed these hopes.

The Supreme Court’s Decision: A Clear Rejection

The UK Supreme Court’s ruling unequivocally rejected P&ID’s request to reverse the decision on the currency of costs order. This outcome reinforces the initial judgment and signals a definitive stance on the matter. The court’s reasoning, while not detailed here, likely focused on established legal principles governing costs awards in such international disputes.

Implications for International Arbitration

This judgment carries significant weight for the landscape of international arbitration. It provides clarity on how courts will approach currency disputes related to costs, particularly in complex cases involving sovereign states. Such clarity can help mitigate future disputes and provide greater certainty for parties involved in arbitration.

Key Takeaways for Legal Professionals

For legal practitioners and businesses engaged in international commercial disputes, this ruling offers several important lessons:

• The importance of meticulously considering the currency provisions in arbitration agreements.
• The potential impact of currency fluctuations on the financial outcome of legal battles.
• The UK Supreme Court’s inclination to uphold previous rulings on established legal principles.

The Path Forward for Nigeria and P&ID

With the Supreme Court’s decision, the issue of the currency of costs order in Nigeria’s set-aside proceedings against P&ID appears to be settled. This ruling is a crucial step in the ongoing legal saga, bringing Nigeria closer to resolving this long-standing dispute.

What Happens Next?

The immediate next steps would typically involve the formal implementation of the costs order as determined by the courts. Further proceedings related to the underlying arbitral award may still be ongoing or subject to separate legal challenges. However, the Supreme Court’s intervention on the costs currency has provided a definitive resolution on that specific point.

Looking Ahead: Precedent and Practice

This case serves as a valuable precedent. It underscores the need for careful consideration of currency issues from the outset of any international legal engagement. The principles applied by the UK Supreme Court in this instance will likely influence future decisions on similar matters, promoting consistency and predictability in the application of costs orders.

The UK Supreme Court’s decision on the currency of costs order in Nigeria’s set-aside proceedings against P&ID is a landmark ruling. It reaffirms the court’s authority and provides much-needed clarity on a critical aspect of international legal disputes. This outcome is a significant moment in the ongoing legal journey for both Nigeria and P&ID.