The parties to this appeal entered into a building contract on 13th April 1993 by which the respondent, as contractor, contracted to erect for the appellant, as employer, 2 two-storey blocks of 6 flats together with out-houses at plot 7, Parkview Estate, Ikoyi, Lagos. Before the completion of the building, a dispute arose as a result of which the appellant terminated the contract on 24th March, 1984. The dispute was referred by the parties to an arbitrator and after taking evidence from witnesses called by the parties, issued a report containing his award. The report was issued on 8th March, 1985 within a year of the dispute. The respondent, as claimant had claimed in the arbitration-

The appellant on the other hand counter-claimed for-

In his award, the arbitrator upheld respondent’s claim for work done between 21st January and 24th March, 1984 and allowed the sum of N53,105.96 in respect of this claim. On the retention money, he allowed the sum of N22,648.68 instead N22,911.00 claimed by respondent. The arbitrator disallowed the respondent’s claim for N25,000.00 loan made by it to the appellant. A total sum of n75,754.64 was made in favour of the respondent.

On the appellant’s claims, the arbitrator found that the “unilateral circumstances of that determination (of the contract) must absolve the claimant from liability to refund any expenses incurred by the respondent in making goods these defects”. Consequently, he rejected the appellant’s claim (1) and (2). He also rejected his claim (3) for N5,000.00,. Notwithstanding his rejection of appellant’s claim (1), the arbitrator awarded him N11,000.00 instead of his claim for N8,095.00 for defective staircase. A further award of N3,000.00 was also made in favour of the appellant for other defective works, making a total N14,000.00 made in favour of the appellant. The final award to the respondent was put at N61,754.64 to be paid on the latter by the appellant.

On 19th April 1985, the appellant filed an application to the High Court for the setting aside of the award made by the arbitrator on the grounds, inter alia, that the arbitrator misconduct himself and that the award was based on contradictory, inconsistent and inadmissible evidence.

After arguments of the application the trial court found against the appellant on all issue raised except on the issue of N5,000.00 claimed by the appellant which the court remitted to the arbitrator for resolution. The appellant was dissatisfied and it appealed to the Court of Appeal which court dismissed the appeal. However, with respect to the disputed sum of N5,000.00 the Court of Appeal made a consequential order that the said sum be paid to the appellant by the respondent.

Being dissatisfied with the Court of Appeal’s judgment the appellant appealed to the Supreme Court.