South Korean firm Yooshin Engineering, a Lamu port lead consultant, has suffered a setback after a court dismissed its objection to a case filed against it by local consultant AIA Architects.
Yooshin Engineering which is leading design, review, supervision and construction of the first three berths of the Lamu Port, had issued a notice of termination of sub consultancy agreement with AIA Architects prompting the latter to move to court.
Justice Patrick Otieno dismissed the preliminary objection by Yooshin Engineering Corporation saying it was filed outside the statutory time frame for arbitration. “The defendant was thus deemed to have forfeited the right to insist on reference to arbitration, stay or lack of court’s jurisdiction to entertain the matter and have it referred to arbitration,” said Justice Otieno.
In the suit, the AIA Architects Ltd, formally Adventis-Inhouse Africa Ltd, wants, among other orders, a declaration that it is entitled to undertake the works and construction supervision of the proposed three berths at Lamu Port Manda bay as per the proposal submitted to Kenya Ports Authority.
Justice Otieno also issued an order suspending the date of effect of notice of termination of contract issued by Yooshin Engineering Corporation to AIA Architects.
He further directed AIA Architects to continue working on the project as per the terms of the contract of the tender and also continue holding on to the soft copies of designs for the buildings and associated infrastructure.