Experts seek practice directions in arbitration
PRACTITIONERS have called for the need to formulate practice directions in arbitration to ensure best service delivery.
This was at a panel discussion on key provisions of the Arbitration and Mediation Act 2023, themed, “The relationship between Arbitration and Courts”, organised by London Court of International Arbitration in partnership with Banwo & Ighodalo.
Partner, Banwo & Ighodalo, Abimbola Akeredolu ( SAN), said though arbitration has become one of the preferred means of Alternative Dispute Resolution ( ADR), it runs a risk of gradually becoming unpopular between disputants and practitioners because of curial interventions, especially in areas of enforcement. Arbitration in Nigeria, she explained, was previously governed by the Arbitration and Conciliation Act, but in 2023, the Arbitration and Mediation Act became the governing law.
She noted that to remedy the defect of the past, section 64 of the new Act provides that a court shall not intervene in any matter governed by the act, except where the act provides, adding that the rationale behind this section limits the intervention of the court in the Arbitration process. Judge, High Court of Lagos state, Lateefa Okunnu, said the crucial difference between the old law and the new one is the use of shall, which now makes it mandatory.
“It’s imperative that if we are going to recognise the fundamental principle of law, particularly in commercial transactions about the sanctity of contracts, we must acknowledge that sanctity,” she said.
On section 7 of the Act, which allows the court to participate in the selection of arbitrators, the challenge of their appointment and the termination of their mandate, Okunnu said there is no formal practice directions to guide the courts, adding that decisions are made based on qualifications, specialisation and experience.
Director General, London Court of International Arbitration, Jacomijn Van Haersolte- Van Hof, said there is a current law reform ongoing in the United Kingdom, which deals with the law applicable to the arbitration agreement.
The reform intends to get rid of extremely unhelpful recent case law.
She, however, expressed people’s concern that the bad old law would continue to have impact even though the provisions are clearer, adding that users would initially be a bit weary in a bid to decipher the effectiveness.