legal framework for international commercial arbitration /adr in nigeria
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Transcript legal framework for international commercial arbitration /adr in nigeria
LEGAL FRAMEWORK FOR INTERNATIONAL
COMMERCIAL ARBITRATION /ADR IN NIGERIA
BY
ADEDOYIN OYINKAN RHODES-VIVOUR (MRS.) FCIARB
CHARTERED ARBITRATOR, CEDR [UK] ACCREDITED MEDIATOR
MANAGING PARTNER
DOYIN RHODES-VIVOUR & CO.
9, SIMEON AKINLONU CRESCENT
ONIRU PRIVATE ESTATE
VICTORIA ISLAND EXTENSION
LAGOS – NIGERIA.
Email: [email protected]
LEGAL FRAMEWORK [INTERNATIONAL]
United Nations Commission on International Trade Law [UNCITRAL Model Law
[1985; Revised 2006].
UNCITRAL Arbitration/Conciliation Rules.
New York Convention on the Recognition and Enforcement of Foreign Arbitral
Awards 1958.
National courts are required to recognize and enforce foreign awards save
in a few instances.
Maritime Conventions
Hague Rules
Hague/Visby Rules
Hamburg Rules
Multi-Modal Convention 1980
Rotterdam Rules
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LEGAL FRAMEWORK [DOMESTIC]
Arbitration and Conciliation Act Cap A18 Laws of the
Federation of Nigeria 2004.
Domesticated the New York Convention which was
ratified by Nigeria on the 17th day of March 1970.
State Arbitration Laws.
Lagos State Arbitration Law
Importance of the laws of the place of arbitration/seat of
the arbitration
Arbitration proceedings are subject to the mandatory
provisions of the law of the place of the seat.
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NATIONAL MARITIME LEGISLATION/ADR
Admiralty Jurisdiction Act
Effect of section 20
MV Panormous Bay
“It is the contention of the respondent that the clause inserted in the bills of
lading were done without any consultation whatsoever with the respondent or its
predecessor in title as it is a standard form contract usually lopsided in favour of
the carriers, which was not bona fide, as its sole aim is to frustrate legitimate
claims having underserved jurisdictional advantage. I am quite satisfied that the
learned trial judge, apart from the fact that he has given due consideration to
S.5[2][b] of the Arbitration and Conciliation Act, he has also considered the
legality, genuineness and reasonableness of the arbitration clause contained in
the bills of lading”. The Hon. Justice Galadima [JSC] – M.V Parnomous Bay V.
Olam (Nig) Plc
“Section 20 of the Admiralty Jurisdiction Act has altered the hitherto existing
position in admiralty matters thereby modifying section 2 and 4 of the Arbitration
and Conciliation Act and limited enforceable arbitration agreement to those
having Nigeria as their forum.
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MV Lupex
Arbitration agreement does not oust the court’s jurisdiction but is
an agreement of the parties which must be enforced.
Duty on court to enforce arbitration agreements was reiterated.
Federal High Court Act
Section 17
Federal High Court Rules
Order 52 Rules 2, 8, 9, 13, 16 and 17
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ARBITRATION AND THE NIGERIAN COURTS
Section 1(2) of the Evidence Act states that the provisions of
the Evidence Act shall not apply to arbitral proceedings.
Rules of Court do not apply to arbitral proceedings.
Ras Pal Gazi Construction Company Ltd V FCDA 2001 10 NWLR part
722 pg 559 at 572 paras D – F, The Supreme Court of Nigeria declared that
an Award is at par with a judgement of the court has the same force and
effect and cannot be tampered with except as provided in the Act.
Courts not to interfere except as provided by the law
Section 34 Federal Act
Section 59[1] Lagos Law
Applications to the Court (Arbitration Procedure Rules)
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POWERS OF THE COURT IN RELATION TO
ARBITRATION PROCEEDINGS
ROLE PRIOR TO CONSTITUTION OF ARBITRAL TRIBUNAL /
COMMENCEMENT OF PROCEEDINGS
Section 2 ACA – arbitration agreement irrevocable except by agreement / leave of court
Sections 4 & 5 ACA – Stay of proceedings
Section 7 – Appointment & challenge of arbitrators
COURT’S ROLE DURING THE PROCEEDINGS
Section 23 of ACA – issuance of writs of subpoena / habeas corpus
Section 13 / Article 26 – Interim measure of protection
POST AWARD ROLE OF THE COURTS
Section 29 of ACA – Settling aside of award
Section 30(2) – Misconduct of arbitrator
Section 31(1)and 32 – Recognition and enforcement of awards
Section 48 , 51 and 52– Other factors necessitating the setting aside of an award under international
commercial arbitration.
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NEW PROVISIONS OF THE LAGOS STATE ARBITRATION LAW
Form of Arbitration Agreement
o Sections 3[3] [4] and [5]of the Lagos State Arbitration Law
Interim Measures / Preliminary Orders
o Section 21 of the Lagos State Arbitration Law
o Section 21[3] of the Lagos State Arbitration Law
o Section 25 of the Lagos State Arbitration Law
o Section 26 of the Lagos State Arbitration Law
o Section 27 of the Lagos State Arbitration Law
o Section 28 of the Lagos State Arbitration Law
o Section 29[1][2] and [3] of the Lagos State Arbitration Law
Specific Powers of the Arbitral Tribunal on Remedies
o Section 38 of the Lagos State Arbitration Law
o Section 38[2] of the Lagos State Arbitration Law
Appointment of Umpire
o Section 9[1] [a] and [b] of the Lagos State Arbitration Law
o See section 9[2] [a-d] of the State Arbitration Law
o Section 9[2][a] of the Lagos State Arbitration Law
o Section 9[2][b] of the Lagos State Arbitration Law
o Section 9[2][c] of the Lagos State Arbitration Law
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Consequence of Resignation of an Arbitrator.
o Section 14[1][a] and [b] of the Lagos State Arbitration Law
o Section 14[2][a] and [b] of the Lagos State Arbitration Law
Immunity of Arbitrators
o Section 18[2] and [3] of the Lagos State Arbitration Law
Applicable Arbitration Rules
o Section 31 of the Lagos State Arbitration Law
Applicability of Limitation Laws
o Section 35[5] of the Lagos State Arbitration Law
Consolidation, Concurrent Hearing and Joinder of Parties
o Section 40[1][a][b] of the Lagos State Arbitration Law
o Section 40[2] of the Lagos State Arbitration Law
o Section 40[3] of the Lagos State Arbitration Law
Interest
o Section 46 of the Lagos State Arbitration Law
Notification of Award / Arbitrator’s Lien on Award
o Section 49 [1] of the Lagos State Arbitration Law
o Section 49 [2] of the Lagos State Arbitration Law
o Section 49 [3] [a] [b] [c] of the Lagos State Arbitration Law
o Section 49 [5] of the Lagos State Arbitration Law
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JURISPRUDENCE OF NIGERIAN COURTS
Owners of M. V Lupex vs. Nigeria Overseas Chartering and Shipping Ltd
[2003] 15NWLR Part 844 at 469
Duty on court to ensure observance of arbitral clause
“ So long as an arbitration clause is retained in a contract that is
valid and the dispute is within the contemplation of the clause, the
court ought to give due regard to the voluntary contract of the
parties by enforcing the arbitration clause as agreed by them”.
The court should not been seen to encourage the breach of a
valid arbitration agreement particularly if it has international
flavour – relying on the words of Ehpraim Akpata JSC [Rtd] “The
Nigerian Arbitration Law”
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ANTI SUIT INJUNCTIONS
Remedy available in domestic (local) courts to prevent proceedings started
or continuing in other jurisdictions
Local courts determines that it is the proper jurisdiction to hear suit
Effect on arbitration – bars or ignores arbitration in foreign jurisdiction.
Justice Schwebel former court of international court of Justice stated thus:
“When a domestic court acts, it acts as an organ of the State for whose actions
that the State is internationally responsible. When a domestic court issues an
anti-suit injunction blocking the international arbitration agreed to in a contract,
that court fails to refer the parties to arbitration…” In substance it fails
anticipatorily to “recognise arbitral awards as binding and enforce them…” This
is room to conclude that an anti-suit injunction is inconsistent with the New York
Convention…….”
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MEDIATION AND THE COURTS
Nigerian legal system has always recognized the compatibility of
ADR with the court system.
Section 24 High Court Laws
“In any action in the High Court the courts may promote
reconciliation among the parties thereto and encourage and
facilitate the amicable settlement thereof”.
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MEDIATION AND THE GOVERNMENT
Citizen Mediation Centres
Established under relevant State laws
Provision of free alternative dispute resolution services to indigent
members of the public.
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COURT CONNECTED ADR
Lagos, Kano and Abuja Multidoor Courthouses
Multidoor Courthouse
Mode of Referal
Practice Directions
The Presiding Judge ordering and or referring an on-going case to the LMDC.
The Director of the LMDC or the ADR or the ADR Judge inviting disputing parties to a
meeting to explore options towards an amicable resolution of their dispute.
Any of the parties to an agreement stipulating mediation, arbitration or any other ADR
process in the resolution of their dispute.
Any of the parties, their counsel or any designated officer of the court at any time prior to
or after the filing or commencement of an action in the court.
Anyone with interest in a dispute and or belief that the LMDC could be beneficial to an
on-going dispute or the parties.
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SOME ARBITRAL/ADR INSTITUTIONS /
FACILITIES IN NIGERIA
Lagos Regional Centre for International Commercial Arbitration
Lagos Court of Arbitration
Chartered Institute of Arbitrators, London [Nigeria Branch]
Maritime Arbitrators Association of Nigeria
Institute of Chartered Mediators of Nigeria
Lagos Multi-door Courthouse
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CONCLUSION
Nigeria has an up to date legal framework for the conduct of arbitration. The Federal Act is the
modification of the 1985 UNCITRAL Model Law. The Lagos Law No. 10 incorporates the recent
2006 amendments to the Model Law. Nigeria has domesticated the New York Convention on
the Recognition and Enforcement of Foreign Arbitral Awards 1958. Nigerian courts understand
the nature of arbitration agreements and its binding nature. Facilities exist in Nigeria for the
conduct of arbitration. Nigeria has a crop of highly trained arbitrators and alternative dispute
resolvers.
Presently most maritime arbitration involving Nigerian parties or with close connection to Nigeria
are conducted outside Nigerian shores. Often times Nigerian consignees believe that they are
being put to great cost and expenses particularly as these disputes may be arbitrated in
Nigeria. Arbitration is meant to be cost effective. Encouraging the development of other regions
apart from the traditional ones can only enhance the cost effectiveness of the process.
Concerted efforts and co-operation need to be made to promote arbitration/ADR centres within
different geographical regions. However all countries of the region must ensure suitable legal
framework, capacity in the field, support of the judiciary and conducive infrastructure in their bid
for recognition as places of international arbitration.
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