UNIT 14

ARBITRATION

Arbitration is a process where disputing parties submit their conflict to one or more arbitrators, who make a binding decision. It is governed by the arbitration and conciliation act, Cap A18, laws of the federation of Nigeria 2004 (ACA). The ACA provides the legal basis for arbitration in Nigeria. See section 1 which states the applicability of the act to arbitration agreements and procedures, section 2 which recognizes the validity of arbitration agreements and section 7 which allows parties to determine the procedure for arbitration. See also the case of Adebiyi v. Adebiyi (2000) 9 NWLR (Pt. 673) 342 where the court upheld the arbitration clause, emphasizing the importance of parties' intention to resolve disputes through arbitration and the case of Ogunbiyi v. Osunkeye (2006) 13 NWLR (Pt. 998) 277 where the court reinforced that the arbitral award is binding unless there is a legitimate challenge based on procedural irregularities. The types of arbitration includes:

1. Domestic arbitration: this involves parties from Nigeria.
2. International arbitration: this involves parties from different countries. The ACA applies, but the parties may also choose other institutional rules.

PROCEDURE FOR ARBITRATION

The arbitration process typically involves the following:

1. Agreement to arbitrate: this is where parties must enter a written arbitration agreement.
2. Appointment of arbitrators: this is where arbitrators can be appointed by parties or a designated authority.
3. Arbitration hearing: this is where both parties present their case to the arbitrators.
4. Award: this is where the arbitrators issue a binding decision, known as an award.

ETHICAL CONSIDERATIONS FOR ARBITRATION

Legal practitioners must adhere to ethical standards during arbitration, including the following:

1. Confidentiality: Maintaining the privacy of the proceedings.
2. Impartiality: Ensuring that arbitrators remain unbiased.
3. Competence: Lawyers should possess the necessary knowledge and skills to effectively represent clients in arbitration.

CONCILIATION

Conciliation is a process where a neutral third party, known as a conciliator, assists the disputing parties in reaching a mutually acceptable settlement. Unlike arbitration, the conciliator does not make a binding decision. Conciliation in Nigeria is also governed by the arbitration and conciliation act. See section 29 which allows parties to refer disputes to conciliation and section 30 which outlines the process and powers of the conciliator. See also the case of Union Bank of Nigeria Plc v. Ekwenugo (2016) LPELR-41081(CA) where the court recognized the importance of conciliation in promoting amicable settlements and reducing court congestion and the case of Ikpeazu v. State (2021) LPELR-54749(CA) where the court emphasized the role of conciliation in resolving disputes without resorting to litigation.

PROCEDURE FOR CONCILIATION

The conciliation process generally follows the following steps:

1. Referral to conciliation: this is where parties agree to refer their dispute to a conciliator.
2. Appointment of conciliator: this is where the parties appoint a conciliator or a panel.
3. Conciliation meeting: this is where the conciliator facilitates discussions between the parties.
4. Settlement agreement: this happens if an agreement is reached, the conciliator drafts a settlement document.

ETHICAL CONSIDERATIONS FOR CONCILIATION

In conciliation, lawyers should observe ethical standards such as the following:

1. Neutrality: Lawyers should support their clients while respecting the conciliator's role.
2. Transparency: Full disclosure of relevant information to facilitate a fair resolution.
3. Respect for autonomy: Encouraging clients to make informed decisions about their settlement options.

CONCLUSION

Arbitration and conciliation serve as essential tools for dispute resolution in Nigeria. Legal practitioners must understand their legal frameworks, procedures, and ethical implications to effectively represent their clients. By adhering to ethical standards, lawyers contribute to the integrity of the ADR processes and promote a more efficient legal system.