US Court Orders American Firm To Pay BUA International £343,750 In Arbitral Award

A United States District Court in Idaho has directed Domtec International LLC, an American company specializing in the construction of concrete domes, to pay BUA International Limited, a subsidiary of Nigeria’s BUA Group, a sum of £343,750.91 as an arbitral award. The court has given Domtec 21 days from April 1, 2024, to comply with the order, failing which the court will issue writs of execution and/or garnishment on the company’s assets.

The court’s decision comes after a petition filed by BUA International and NOM (UK) Limited in April 2023, requesting the confirmation of a foreign arbitral award rendered in the British Virgin Islands in November 2022. The award was issued by sole arbitrator Michael J. Fay KC in favor of BUA International and NOM, based on a written supply agreement between Domtec and NOM.

According to court documents, the supply agreement required Domtec to design and build sugar domes on BUA’s properties in Lagos and Port Harcourt, Nigeria. Disputes arose between the parties, and arbitration proceedings were initiated by Domtec against BUA International and NOM in 2022.

Apart from ordering Domtec to pay the petitioners £343,750.91, the arbitrator also directed the company to pay interest compounded monthly on that amount at two percent over the Bank of England bank rate from the date of the arbitral award until payment is made. Additionally, Domtec is to pay the petitioners $42,560 for tribunal fees and costs, as well as interest compounded monthly on that sum at two percent over the US Federal Reserve interest range from the date of the arbitral award until payment.

The US District Court for the District of Idaho granted the petition to confirm the foreign arbitral award and for entry of judgment in October 2023. However, BUA International and NOM filed a motion for an award of attorney’s fees, which the court denied on April 1, 2024, stating that there were no grounds entitling the petitioners to such an award.

The court has given Domtec a final opportunity to comply with its order and judgment within the next 21 days, after which it will issue the requested writs of execution and/or garnishment upon notice from the petitioners.