A United States federal court has directed Standard Chartered Bank in New York to transfer $6.21 million belonging to Polaris Bank Limited to Danish shipping company Norden, bringing a protracted legal dispute over a 2021 cargo shipment to the brink of resolution.
The directive followed a settlement between the Nigerian lender and the shipping firm after months of litigation over outstanding freight payments and other charges arising from the transportation of gypsum to Nigeria.
In an order dated November 5, 2026, the United States District Court for the Southern District of New York instructed Standard Chartered Bank to remit $6,214,196.08 from funds belonging to Polaris Bank that had been placed under judicial attachment.
The transfer was scheduled to be completed no later than November 12, 2026, under the terms of the settlement agreement.
The court also terminated the proceedings with prejudice, effectively preventing the parties from reopening the same claims through a fresh lawsuit.
However, the order retained provisions allowing Norden to seek enforcement if the agreed payment was not made.
How a 2021 Cargo Shipment Triggered the Dispute
The legal confrontation originated from a shipping arrangement involving 27,000 metric tonnes of gypsum transported aboard the vessel Lady Demet from Safi, Morocco, to Lagos in 2021.
The consignment was supplied by Gypse Expo and purchased by Quattro Marine and Petrochemical Nigeria Limited for resale to Lafarge Africa Plc.
Polaris Bank participated in the transaction by providing financing through a letter of credit.
Under the shipping agreement executed on June 28, 2021, the parties agreed to a freight rate of $39.95 per metric tonne.
The contract also stipulated demurrage charges of $35,000 daily whenever the vessel remained at port beyond the agreed period.
Disagreements subsequently emerged over freight obligations and charges associated with delays at various ports, resulting in claims that substantially exceeded the original transportation cost.
London Arbitration Awards Norden Over $1m
Following the breakdown of efforts to resolve the dispute, Norden commenced arbitration proceedings against Polaris Bank in London around May 6, 2022.
The matter was handled under the framework of the London Maritime Arbitrators Association.
On March 30, 2026, the arbitral tribunal issued a final partial award requiring Polaris Bank to pay Norden $1,052,692.50 in outstanding freight.
The award attracted interest at five per cent annually, compounded quarterly, beginning September 25, 2021, until settlement.
Court filings subsequently presented in the United States indicated that the amount remained unpaid when Norden initiated enforcement-related proceedings in New York.
Beyond the freight award, the Danish company maintained additional claims exceeding $4.2 million.
These included charges of approximately $1.55 million for delays at the loading port, $1.98 million associated with discharge operations in Lagos and $811,586.81 relating to Calabar.
Other disputed amounts covered additional freight, war-risk insurance premiums, security-related expenses and compensation for loss of vessel hire.
The overall claims also accounted for an earlier payment of $400,000.
US Court Freezes Polaris Bank Funds
Unable to secure payment of the arbitration award, Norden approached the Southern District of New York on June 22, 2026, seeking judicial intervention against funds belonging to Polaris Bank within the United States banking system.
The proceedings identified Citibank, Standard Chartered Bank and United Bank for Africa, through their New York operations, as potential holders of assets belonging to the Nigerian lender.
Norden sought security for its outstanding claims, including the arbitration award, additional disputed charges, accumulated interest and legal expenses.
On June 25, the court authorised maritime attachment and garnishment against Polaris Bank’s assets.
The directive permitted the seizure of funds held through Standard Chartered Bank in New York up to $6.001 million, subject to an overall ceiling of $6.4 million covering associated costs and interest.
The attached money was to remain under judicial control pending further instructions.
The court’s authorisation also covered qualifying assets and credits held by other financial institutions within its jurisdiction.
The decision effectively restricted Polaris Bank’s access to the affected funds while the litigation remained unresolved.
Polaris Bank Secures Repeated Extensions Without Filing Defence
Court records detailed a series of procedural extensions granted to Polaris Bank after the attachment order.
The bank, represented by international law firm Dentons, received additional time to respond to Norden’s complaint on several occasions between July and October 2026.
Its final deadline was extended to November 11.
Despite these opportunities, the bank did not submit a formal answer to the substantive allegations before the parties settled.
Standard Chartered Bank, acting in its capacity as garnishee, filed its own response on August 7.
The absence of a defence filing by Polaris Bank meant the lender did not formally contest Norden’s complaint through an answer entered on the New York court record.
Nevertheless, the eventual resolution was negotiated between the parties rather than imposed following a full trial of the disputed claims.
Settlement Agreement Ends Months of Litigation
The case moved towards resolution in October after the court received notification that Norden and Polaris Bank had reached an agreement in principle.
On October 27, the court discontinued the proceedings while allowing a 30-day period for reinstatement should the settlement encounter difficulties.
Both parties subsequently filed a joint request on October 28 seeking to reopen the matter for the limited purpose of implementing their agreement and releasing the attached funds.
The application was approved, paving the way for the November 5 order.
Under the settlement terms, Standard Chartered Bank was directed to transfer exactly $6,214,196.08 to an account nominated by Norden.
Upon completion of the payment, the judicial restrictions affecting Polaris Bank’s assets held by Standard Chartered and the other garnishee institutions were to be discharged.
The court further directed that Standard Chartered be released from its obligations as garnishee, while each party would bear its own litigation expenses.
Although the proceedings were dismissed with prejudice, Norden retained the right to return to court to enforce the settlement, including through renewed attachment measures, if Polaris Bank failed to comply.
Settlement Exceeds Original Freight Award by More Than $5m
The final settlement figure represents a substantial increase over the initial arbitration award.
While the London tribunal awarded Norden approximately $1.05 million in outstanding freight, the amount authorised for payment in New York reached $6.21 million.