The Respondent is the owner of the ship named "MV Frio Caribic.' hereinafter referred to as 'the ship'. The ship was chartered to convey a consignment of frozen fish from Mar Del Plata in Argentina, to Apapa Lagos, Nigeria. The ship arrived at the Apapa port on 29th December, 1987 and discharged its cargo. Following the alleged delay in the Appellant taking delivery of the cargo within the time agreed by the parties in the Bill of Lading, the Respondent brought an action against the Appellant at the Federal High Court, Lagos on 21st December, 1988, claiming the sum of $119,739,40 United States Dollars as demurrage. Following the order of pleadings by the trial Court, the Respondent as the Plaintiff filed its statement of claim to pave the way for the hearing of the case.

The Appellant responded to the claim filed through an application in which the Appellant prayed for

The Application was supported by an Affidavit. The Respondent did not file a Counter-Affidavit in response to the deposition in the supporting Affidavit. The Application was predicated on the foreign jurisdiction clause in the bill of lading. The jurisdiction of High Court of Lagos to entertain the Claim was challenged.

The High Court and the Court of Appeal both refused the Appellant's Application. The Appellant therefore appealed to the Supreme Court.