PROJECT TOPIC- A COMPARATIVE ANALYSIS OF ARBITRATION OVER

LITIGATION: AN OVERVIEW OF THE LAGOS STATE MULTIDOOR COURTHOUSE

BY

NAME: EKINE, SANDRA .B

MATRIC NO: 13/68DA020

EMAIL ADDRESS: [email protected]

YEAR OF SUBMISSION: 2014

CHAPTER 1

PROPOSAL

1.1. BACKGROUND TO STUDY

This research project titled “Comparative Analysis of Arbitration over litigation: an

Overview of Lagos State Multidoor Courthouse” stems from the need to fully know ,and

understand the feasibility of the advantages often stated for alternative dispute resolution,

particularly arbitration over litigation due to the rapidly growing interest shown in arbitration in

Nigeria. Litigation is one of the oldest, traditional and legal means of resolving dispute between

two parties in court, and entails resolving all kinds of disagreements and conflicts hence the

piling up of loads of cases due to the many red tapes and protocols attached to it leading to

adjournment.

The idea of Alternative Dispute Resolution(ADR) is about the search for and application of

non-conventional peaceful method of settling disputes and resolving conflict situations using the

least expensive methods and in ways that satisfy the parties and most importantly preserve

relationships after a settlement might have been reached. Arbitration as an alternative dispute
resolution is specially meant to serve as an alternative to the official conventional means of

settling disputes as a result of the shortcomings noticed over the years. Arbitration is the use and

assistance of a neutral third party in a conflict who hears the evidence from both parties and

renders a decision which is binding on the parties. The growing importance of arbitration in the

country stems from the spectrum of conflict resolution and transformation which involves non

violent management options. It allows for the disputants’ full participation in the process. The

realization and recognition of its importance as a non-violent conflict resolution mechanism

made it necessary for the Arbitration and Conciliation Decree of 1988 to be updated to a more

modern and suitable legislation on arbitration to suit the changing and evolving patterns of

conflict emerging and it is presently the arbitration statute in use in Nigeria.

Prior to the establishment of the Colony and Protectorate of Nigeria in 1914 Lagos had

existed as a legal and administrative territory since 1886. Lagos remains today the center of

commerce for the country, notwithstanding the formal relocation of the seat of the Federal

Government to Abuja on 12 December 1991. As the commercial and economic nerve centre of

the country, Lagos State accounts for the highest volume of foreign and local commercial

transactions in Nigeria. It is only logical that arbitration related activities come up as a result of

the speed and efficiency of arbitration in resolving commercial disputes. The Lagos Multi-Door

Courthouse, LMDC have been known to handle cases referred to it by the High Court of Lagos

State with the aim of reducing the number of civil cases in courts, saving time, being cost

effective and at the same time also helping to maintain cordial relationships between the parties

in the dispute.
 1.2. STATEMENT OF PROBLEM

Arbitration in Nigeria can be said to be a new phenomenon and several awareness seminars,

lectures and workshops have been organized by arbitration organizations and arbitration bodies

like the Lagos state Multidoor courthouse and the Chartered Institute of Arbitrators in Nigeria

branch to encourage and develop a form of interest in the minds of people when it comes to

settling of disputes. Despite the growing awareness surrounding arbitration and the efforts

undertaken by mentioned institutions, skepticism still surrounds arbitration in Nigeria on certain

points.

1.3. RESEARCH OBJECTIVES

 This research aims to clarify any grey areas with regards to the concept of arbitration

as an alternative dispute resolution mechanism

 To provide empirical data to prove arbitration as a better alternative to litigation.

 To understand the practicability of arbitration within the country

 To identify the procedures done to ensure expediency of arbitration process

1.4. RESEARCH QUESTIONS

 Is arbitration really put to use in Nigeria?

 How successful have arbitration processes been in comparison to litigation?

 Has arbitration helped reduce the case loads of the Courts?

 What are the strategies employed in arbitration when managing disputes?

 Under what circumstances are disputes referred to arbitration?

This research work is specific in its scope with the LAGOS STATE MULTI DOOR

COURTHOUSE as its case study.

1.6. SIGNIFICANCE OF STUDY

Much has been said about the effectiveness of alternative dispute resolution mechanisms

especially arbitration and its advantages over litigation but not much has been said with regards

to how effective it has been in Nigeria and Lagos being the starting point for the ADR process in

the country. To promote the efficiency of arbitration in the country, there is the need to

understand the various spectrums arbitration consists of and the efforts put by institutions like the

LSMDC in employing these qualities when resolving and transforming conflict situations

1.7. LIMITATION OF STUDY:

Due to this modern arbitration being a recent phenomenon in Nigeria and lots of write-ups

and journals being written and published in other to create awareness, this research project might

run the risk of being perceived as a replica of previous write-ups related to this work; hopefully,

the aim of this work will be portrayed and seen as authentic and genuine. Another limitation of

this research work is coming up with empirical data to analyze the effectiveness of arbitration

over litigation which would affirm arbitration as a better alternative to litigation.

1.8. SOURCE OF DATA

This research work will employ the use of primary data from the offices of the Lagos State

Multi door Courthouse and secondary data from journal and publications related to key issues in

the research topic.

 Arbitration tribunal- An arbitral tribunal is a tribunal constituted for resolving a

dispute by way of arbitration. It can consist of either a sole arbitrator or two or more

arbitrators.

 Lex arbitri- procedural rules of the place of the arbitration or institution of arbitration

 Court- a judicial tribunal duly constituted for the hearing and determination of cases

and created by the government through the enactment of statutes or by constitutional

provisions for the purpose of enforcing the law for the public good.

1.10. ABBREVIATIONS

ADR- Alternative Dispute Resolution

LSMDC- Lagos State Multi Door Courthouse

ACD- Arbitration and Conciliation Decree, 1988