Femi Folaranmi, Yenagoa
The State High Court sitting in Yenagoa, Bayelsa State has transferred a civil suit between Dilly Motors Limited and Solalina Mass Transport Limited bordering on N2.5bn cars supplied to the state government to arbitration.
The court presided over by Justice T.I. Cocodia directed the parties to first explore the alternative dispute resolution method contained in their business agreement to settle the alleged contract breach by Dilly Motors.
Cocodia gave the directive following the application of the lawyer to Dilly Motors Limited, Mr. Chijioke Emeka, who explained that the Arbitration Clause was part of the Vehicle Procurement Facilitation Agreement between the parties.
The lawyer to Solalina Mass Transport Limited, Mr. Timibieri G. Woko, did not oppose the application as he acknowledged that his client was aware of the arbitration clause.
He, however, said his client chose to approach the court first to preserve the res since it has supportive and supervisory jurisdiction.
The judge after referring the matter to arbitration adjourned the case indefinitely pending the determination and outcome of the arbitration panel.
Woko, who spoke after sitting said that following the order of the court, steps would be taken to put final touches on the notice of arbitration and serve same on Dilly Motors Limited.
He said: “With this development, steps will be taken to put together all that is needed for the notice of arbitration with the appointment of an Arbitrator and serve same on Dilly Motors Limited.
“Upon service, Dilly Motors will also appoint its arbitrator. Then the two arbitrators so appointed will appoint a third Arbitrator who shall preside”.
Solalina Mass Transport Limited dragged Dilly Motors Limited to court after the auto firm and its owner, Okwudili Umenyiora refused to pay the stated commission in the Vehicle Procurement Facilitation Agreement.
In the suit, Solalina is seeking to enforce its rights contained in a finder’s fee/ facilitation agreement entered into with Dilly Motors Limited for the supply of vehicles to the Bayelsa State Government.