The document outlines the concept and methods of Alternative Dispute Resolution (ADR) in Nigeria, highlighting its advantages over traditional litigation, such as cost-effectiveness, privacy, and the preservation of relationships. Key ADR methods discussed include negotiation, mediation, conciliation, and arbitration, each with distinct processes and regulations under the Arbitration and Conciliation Act. It also emphasizes that ADR is not suitable for all cases, particularly in criminal matters and urgent legal relief situations.
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ADR
The document outlines the concept and methods of Alternative Dispute Resolution (ADR) in Nigeria, highlighting its advantages over traditional litigation, such as cost-effectiveness, privacy, and the preservation of relationships. Key ADR methods discussed include negotiation, mediation, conciliation, and arbitration, each with distinct processes and regulations under the Arbitration and Conciliation Act. It also emphasizes that ADR is not suitable for all cases, particularly in criminal matters and urgent legal relief situations.
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native methods
0cess of initiating alter
litigation, which
‘Alternative Dispute Resolution (ADR) is simply a pr ritaing atonat
ree of resolving a civil or commercial dispute without resorting
2 oc ree, cumbersome, and time-consuming. ADR processes and itigation cannot
Car agother, it has to be one process at a time, Ideally, ADR Is usually resorted to before |
sa teas a court action but subject to the circumstances of each case, it can be reserves 18
Sjgment is given in a matter. Iflitigation is pending and the parties resort to ADR, the
ht to court and entered as a
before j
terms of the settlement reached by the parties would be broug!
consent judgment.
ion is regulated by the Arbitration and Conciliation Act (ACA),
tion. The Constitution of the Federal Republic of Nigeria 1999
s for the
titutional backing to ADR in Section 19, which provide:
Alternative Dispute Resoluti
Conciliation, Negotiation, and
applicable to the whole federat
(as amended) also gives const
settlement of international disputes by Arbitration, Mediation,
Adjudication:
Methods of Alternative Dispute Resolution
Flowing from the above, the following are the main methods of alternative dispute resolution
methods available for settling disputes in Nigeria.
+ Negotiation - Negotiation is a problem-solving process in which the parties toa
dispute or an imminent conflict voluntarily come together either personally or by their
representatives, to discuss their differences and attempt to reach a joint decision or
resolution of the conflict, on their own and without the involvement of a third party.
Negotiation is different from other types of alternative dispute resolution mechanisms
as no third party is involved.
+ Mediation- Mediation is an alternative dispute process in which a neutral and
impartial third party called the mediator is invited by the disputing parties to facilitate
the resolution of the dispute by the self-determined agreement of the disputants. The
mediator facilitates communication, promotes understanding, focuses the parties on
their interests, and uses creative problem-solving techniques to enable the parties to
reach their own mutual settlement/agreement. The mediator is usually jointly
procured by both parties and the process is voluntary as the parties are not under
any obligation to accept the suggestions of the mediator.
Conciliation- Conciliation as an alternative dispute method involves a neutral third
party who can give an opinion or suggestion. It is a system of ADR where a third
party known as the conciliator uses his best endeavours to bring the disputing parties
to a voluntary settlement of their dispute. Conciliation is regulated by the Arbitration
and Conciliation Act (ACA) Laws of the Federation of Nigeria (LFN) 2004.
+ Arbitration- Arbitration is the most initiated method of ADR where parties to a
dispute submit to a third party called an arbitrator or arbitral tribunal for the resolution
of their dispute. The decision of the arbitrator or arbitral panel called an award, is
binding on the parties and enforceable by the courts, Arbitration is regulated by
the Arbitration and Conciliation Act (ACA) Laws of the Federation of Nigeria
(LFN) 2004 and also regulated by the Lagos State Arbitration Law, 2009.
‘An arbitration clause is sometimes found in contractual agreements executed between
contracting parties and the position of the law is that parties to an agreement that contains
an arbitration clause must first abide by the arbitration clause before going to court. When a
party to an arbitration clause in an agreement proceed to court contrary to the arbitration
clause, the other party can apply for a stay of proceeding, and the court, upon the fulfilment
of the relevant conditions will tay the action as provided by Sections 4 & 5 of the Arbitration
and Conciliation Act.ss over
Alternative Dispute Resolution (ADR) proces
Advantages of ulling id
instituting a litigation vacation but in 1079
nsive than litigation ‘
«tis cheaper OR a the Bepenses are borne by the parties
itis cheaper than it . partes ;
terms cheaper han expenses ae notbome BY Ne POTS uagants with
sn in gation sor a tgaton, tere isa competion of £0 NP NRO is tess
different cases, but in ADR, the Pat likely to be the only oe ing from
time-consuming unike instituting & court action ese can i
‘adjournments, the unwillingness ries, etc. the
«theless: nai The courtroom where fi gation is carried out ts usually ene rad,
lawyers, it is difficult, there are a lot of rules and proc w
JvYSieo for the layman, itis extremely difficult. An ADR session is more ata 7
business meeting where coffee can even be served. Hence the layman is Ii ly
refer such an environment. ;
Prercrartioe to the dispute can determine the Coram. This implies that they determine
the mediator or arbitrator or conciliator who will preside over their case, but where
they fail to agree, there are provisions of the law for such appointments to be done
either by the court or an agency.
+ Involvements of people- ADR processes are partis
the time, venue, and pace in the ADR process, unl
not involved. It is controlled by the court.
+ Preservation of the relationship between the parties- Most ADR has a win-win
situation on both sides of parties to the dispute, as it preserves the pre-dispute
relationship that existed between the parties before the dispute.
Privacy of the parties: ADR helps preserve the privacy of the parties. In litigation, the
process must be held in public except under certain conditions thus in private.
It promotes friendliness - most parties to litigation do not return as friends even in
matrimonial proceedings. And in the commercial area of law, ADR is most relevant
as there might still be a need to continue the business relationship.
ies driven. Parties can determine
like in litigation where parties are
Itis also important to state that Alternative Dispute Resolution processes are not useful in all
cases. Such cases include the followings:
+ Incriminal cases generally, ADR is not utilized.
‘ADR cannot be used to resolve election petitions, being matters of public policy.
In matrimonial cases, ADR cannot be used to resolve matters like the dissolution of
marriage, nullity of a void marriage, and restitution of conjugal rights.
1g interpretations of the law, statute, or document. The court
Dispute relating to bi
is the only institution that can do so.
+ Cases of urgency seeking immediate reliefs like an injunction,
Stages of Arbitration Proceedings
+ Initiating the Arbitral Proceedings- Where a dispute arises about a particular
transaction, which the subject of an arbitration agreement, one of the parties is
required to notify the other in writing, called a Notice of Arbitration. It serves as a
notification of the dispute to the other party as well as a request for the parties to go
into arbitration. Section 17 of the ACA provides that "the arbitral proceedings in
respect of a particular dispute are deemed to commence on the date the
request fo refer the dispute to arbitration is received by the other party”.
Article 3(3) of the Arbitration Rules provides that the Notice of arbitration/declaration of
dispute shall contain the following;The points/stater
counterclaim, if necessary. It shi
claim. Also, itis t be accompanies
‘demand that the dispute is referred to arbitration.
The names and addresses of the parties
Jreference to the arbitration clause or the separate arbitration agreement that is
invoked.
‘Areference to the contract out of or to which the dispute arises.
Jo general nature of the claim and an indication of the amount involved, if any.
The relief or remedy sought.
A proposal as to the number ot
previously agreed on it
¥ arbitrators to be appointed if the parties have not
[Appointment of Arbitrators- at this stage, the partes appoint the arbirator(s)
rolhpnng the procedure agreed upon. Where no procedure was agreed on, et! te
ointment will be per the procedure provided by the relevant statute. Where the
parties fail to appoint one within the specified time, the court shall make the
Sppointment upon application by any of the parties.
Preliminary Meeting- the arbitrator (s) meet with the disputed parties 10 agree On
certain preliminary points such as determining jurisdiction and powers of arbitrators,
the move of hearing whether oral or documentary; the number of witnessoe and
tre soot presenting them; the manner in which processes would be presented: the
fees and remuneration of the arbitrators; the deposit of costs, ete.
Submission of Statement of Claim and Defence- the statement of claim is
sabmitted by the party that initiated the arbitration called the claimant. It contains a
Summary of his case and the remedies sought. Itis to be accompanied by all
Seuments considered by the claimant to be relevant to establishing his claim and
the wntten statements of the evidence of witnesses should also accompany the
pointelstatement of ciaim as provided by Article 18 of the Arbitration Rules.
ment of defence is submitted by the other party and may contain @
wall contain the same particulars as to the points/statement of
id by all the documents sought to be relied on.
bitral hearing proceedings are less formal and private unless the parties
agree otherwise. Where a party fails to appear at the hearing, after adequate notice
Fe been issued, the arbitral tribunal shall continue with the trial. After the hearing, @
date for the pronouncement of the award is fixed by the arbitrators.
Hearing- art
‘[Award- Section 24 of the ACA provides for the making of award and termination of
proceedings. An award is the decision of the arbitral tribunal. It determines the rights
of the parties to the dispute with finality. The award shall be in writing and should
contain the following:
The names of the parties to the dispute.
e reasons for the award, unless the parties earl
be estore tnt svat parties earlier agreed that no reason should
The date the award was made.
The place of the arbitration,
It must be signed by the arbitrator(s) or a majority of them,
After the final award is made and is:
ssued to the it
Recognition and Enforcement of Arbitral Awards in Nigerialegally
recognized as
&y the provision of Section 31(1) of the ACA. an arbitral award is facognizen eS
binging on the parties and is enforceable by the court on an appl
application is accompanied by:
i fit.
2 The duly authenticated original award or a duly certified copy o
+ The original arbitration agreement or a duly certified Copy
ward shall be
Where these conditions are satisfied, then by leave of Capen a ate ct
enforced in the same manner as a judgment or order to the
Recognition/Enforcement of International Arbitral Awards
count
By the provisions of Section §1(1) of the ACA, an arbitral award irrespective oe Niger,
in which it was made, be recognised as binding and may be enforced by a col
upon an application in writing.
The application is b
accompanied by:
'y way of a Motion on Notice supported by an affidavit and shall be
The dul authenticated
+ The original arbitration
+ Where the award
translation of it ini
original award or a duly certified copy of it.
agreement or
Conclusion
a duly certified copy of it. :
Se mbitration agreement was not made in English, then a certified
to the English Language.
The content of this article is intended to
provide a general
Specialist advice should be sought abot
guide to the subject matter.
ut your specific circumstances.The most common forms of ADR for civil cases are mediation, arbitration, neutral
evaluation, settlement conferences and community dispute resolution programs.
Mediation
Mediation, commonly also referred to as facilitation, leaves control of the outcome to
the parties. An impartial mediator helps the parties try to reach a mutually acceptable
resolution to the dispute.
The parties control the substance of the discussions and any agreement reached. A
typical session starts with each party telling their story. The mediator listens and
helps them identify the issues in the dispute, offering options for resolution and
assisting them in crafting a settlement.
Mediation can take many forms, depending on the needs of the parties, such as:
Face to face — parties directly communicate during the process,
Shuttle - the mediator separates the parties and shuttles between each one with
proposals for settlement,
itive — the mediator helps the parties directly communicate with each other,
Faci
or
Evaluative — the mediator makes an assessment of the merit of the parties’ claims
during separate meetings and may propose terms of settlement.
When Should You Use Mediation In Michigan?
Mediation should be considered when the parties have a relationship they want to
Preserve. So when family members, neighbors or business partners have a dispute,
mediation may be the best ADR procedure to use.Mediation is also effective when emotions may get in the way of a solution. A
mediator can help the parties communicate in a non-threatening and effective
manner,
Mediation is available to the parties at any point in the litigation process including
through the appeal.
Arbitration
Arbitration is the most formal of the ADR procedures and takes the decision making
away from the parties. The arbitrator hears the arguments and evidence from each
side and then decides the outcome of the dispute.
Arbitration is less formal than a trial and the rules of evidence are usually relaxed in
Michigan. Each party can present proofs and arguments at the hearing. There isn't,
however, any facilitative discussion between the parties.
Unlike other forms of ADR, the award is often supported by a reasoned opinion
(though the parties can agree that no opinion will issue).
Arbitration can be “binding” or “non-binding” in Michigan.
Binding arbitration means the parties have waived their right to a trial, agree to
accept the arbitrator's decision as final and, usually, there is no right of appeal of the
decision. If there is a binding arbitration clause in a contract, the matter must
proceed to arbitration and there is no trial.
Non-t
inding arbitration means the parties can request a trial if they don't accept the
arbitrator's decision. Some courts will impose costs and fines if the court decision is
ot more favorable than that awarded in arbitration, Non-binding arbitration is
increasingly rare.