LAGOS STATE ARBITRATION LAW

 

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LAGOS STATE ARBITRATION LAW

 

ARRANGEMENT OF SECTIONS

  1. General Principles
  2. Application.
  3. Arbitration Agreement.
  4. Arbitration Agreement irrevocable except by agreement.
  5. Death of a Party.
  6. Power to stay Proceedings and make Preservatory Order.
  1. Number of Arbitrators
  2. Appointment of Arbitrators.
  3. Umpire.
  4. Ground for Challenge
  5. Challenge of an Arbitrators Procedure
  6. Removal of an Arbitrator.
  7. Termination of Mandate.
  8. Registration
  9. Death of an Arbitrator.
  10. Cessation of Office of an Arbitrator.
  11. Appointment of Substitute Arbitrator.
  12. Immunity
  13. Jurisdiction.
  14. Substance of Dispute
  15. Power of issue Interim Measures
  16. Conditions for grant of Interim Measures.
  17. Application for Preliminary Orders.
  18. Specific procedure for Preliminary Orders.
  19. Interim Measures and Preliminary Orders by the Arbitral Tribunal.
  20. Provision of Security for Preliminary Order.
  21. Disclosure of. material change in circumstances.
  22. Costs and Interim Damages.
  23. Recognition and enforcement of Interim Measures by the Court.
  24. Grounds for refusing Recognition or Enforcement.
  25. Arbtral procedure.
  26. Commencement of arbitral proceedings.
  27. Place and Time of Arbitration.
  28. Equal treatment of parties.
  29. Application of Limitation Law to arbitral proceedings.
  30. Language of Arbitral Proceedings.
  31. Points of Claim and Defence.
  32. Power of Arbitral Tribunal
  33. Proceedings.
  34. Consolidation, Concurrent hearing and joinder of parties.
  35. Default of a Party.-(1) Unless otherwise agreed by the parties, if, without showing sufficient cause where-
  36. Power to appoint expert.
  37. Power to order attendance of witness.
  38. Decision making by Arbitral Tribunal.
  39. Settlement of Dispute
  40. Interest
  41. Form and contents of Award.
  42. Termination of proceedings.
  43. Notification.
  44. 50. Correction and interpretation of an Award.
  45. Deposit of Costs.
  46. Security for costs.
  47. Joint liability
  48. Application for setting aside of Award
  49. Recognition and enforcement of Awards.
  50. Refusal of Recognition or Enforcement of Awards.
  51. Waiver of right to object.
  52. Extent of Court Intervention
  53. Exclusion of this Law
  54. Extent of Time
  55. Delivery and Receipt of written Communication.
  56. Interpretation.
  57. Citation and Commencement.

SCHEDULE

 

 

LAGOS STATE ARBITRATION LAW 2009

 

(18th day of May 2009)                COMMENCEMENT

 

LAW TO PROVIDE FOR THE RESOLUTION OF DISPUTES BY ARBITRATION IN LAGOS STATE AND FOR CONN’ECTED PURPOSES.

 

THE LAGOS STATE HOUSE OF ASSEMBLY enacts as follows:

 

  1. General Principles

The provisions of this Law are based on the following principles and shall be construed accordingly

  1. a) The object of arbitration is to obtain the fair resolution of disputes by an impartial Tribunal without unnecessary delay or expense;

(b)    Parties should be free to agree on how their disputes are resolved, subject only to such safeguards as are necessary in the public .interest; .

(c)    An Arbitration Agreement between parties for the settlement of any dispute shall be binding upon and enforceable against each of the parties unless the parties expressly agree otherwise at any time or the agreement is invalid, non-existent, ineffective or otherwise unenforceable; and

(d)    Parties, Arbitral Tribunals, Arbitral Institutions, Appointing Authorities and the Court shall do all things necessary for the proper and expeditious conduct of the arbitral proceedings.

 

  1. Application.

From the commencement of this Law, all arbitration within the State shall be governed by the provisions of this Law except where the parties have expressly agreed that another Arbitration Law shall apply.

 

  1. Arbitration Agreement.

(1)    Parties to a dispute shall enter into an Arbitration Agreement to define their legal relationship whether contractual or not, to determine issues that may arise between them.

(2)    An Arbitration Agreement may be in the form of arbitration provisions in a contract or in the form of a separate agreement.

(3)    An Arbitration Agreement shall be in writing.

(4)    ‘Writing’ includes, data that provides a record of the Arbitration Agreement or is otherwise accessible so as to be useable for subsequent reference.

(5)    ‘Data’ includes information generated, sent, received or stored by electronic, optical or similar means, such as but not limited to Electronic Data Interchange (EDI), electronic mail, telegram, telex or telecopy.

(6)    An Arbitration Agreement is in writing jf it is contained in an exchange of written statements in the course of arbitration or legal proceedings in which the existence of an agreement is alleged by one party and not denied by the other party.

(7)    For the avoidance of doubt, the reference in a contract or to a document containing an arbitration clause constitutes an Arbitration Agreement in writing, provided that the reference is such that makes the arbitration clause part of the contract or the Arbitration Agreement.

(8)    Where subsection (7) of this Section applies, the document containing the arbitration clause constitutes the Arbitration Agreement for the purposes of this Law.

 

  1. Arbitration Agreement irrevocable except by agreement.

Unless a contrary intention is expressed, an Arbitration Agreement shall be irrevocable except by the express or written agreement of the parties.

 

  1. Death of a Party.

(1)    An Arbitration Agreement shall not be invalid by reason of the death of any party to the agreement.

(2)    The authority of an arbitrator shall not be revoked by the death of any party by whom he was appointed.

(3)    Nothing in this Section shall be taken to affect the operation of any law by virtue of which any right of action is extinguished by the death of a person.

(4)    For the purposes of this Section, ‘death’ shall include the meaning ascribed to it in Section 63 (1).

 

6.-    Power to stay Proceedings and make Preservatory Order.

(1)    A Court before which an action is brought in a matter subject to an Arbitration Agreement shall, if a party so requests, not later than when submitting the first statement on the substance of the dispute stay proceedings so long as they concern that matter.

(2)    Where an action referred to in subsection (1) of this Section has been brought before a Court, arbitral proceedings may nevertheless be commenced or continued, and an award may be made by the Arbitral Tribunal while the matter is pending before the Court.

(3)    Where a Court makes an order of stay of proceedings under subsection (l) of this Section, the Court may, for the purpose of preserving the rights of parties, make such interim or supplementary orders as may be necessary.

(4)    For the purpose of this Section, a reference to a party includes reference to any person claiming through or under such party.

 

  1. Number of Arbitrators

(1)    The parties are free to agree on the number of arbitrators to constitute Number of the Arbitral Tribunal and       whether there is to be a presiding arbitrator or umpire Arbitrators.

(2)    Unless otherwise agreed by the parties, an agreement that the number of arbitrators shall be two or any other even number shall be deemed to require the appointment of an additional arbitrator to preside over the arbitration.

(3)    If there is no agreement as to the number of arbitrators, the Arbitral Tribunal shall consist of a sole arbitrator.

 

  1. Appointment of Arbitrators.

(1)    Subject to subsections (2) and (3) of this Section, the parties may specify in the Arbitration Agreement the procedure to be followed in appointing an arbitrator or they may designate or agree to designate an appointing authority.

(2)    When the Arbitration Agreement entitles each party to nominate an arbitrator; and where the parties to the dispute number ml.re than two and such parties have not all agreed in writing within 30 days that the disputing parties represent two separate sides for the formation of the Arbitral Tribunal as Claimant and Respondent respectively, then the appointing authority shall have the power to appoint the Arbitral Tribunal without regard to any party’s nomination.

(3)    Where the parties have not specified a procedure but they have designated an appointing authority, the provisions of paragraphs (a) to (i) of this subsection shall apply, that is if-

(a)    a sole arbitrator is to be appointed, the parties may propose to each other, one or more persons, to serve as the sole arbitrator;

(b)    within thirty (30) days after the first proposal is delivered in accordance with paragraph

(a)    of this subsection, the parties have not reached an agreement on the choice of a sole arbitrator, the sole arbitrator shall be appointed by the designated appointing authority;

(c)    in the case of an arbitration with three arbitrators, each party shall appoint one arbitrator and the two so appointed shall appoint the third who shall act as the presiding arbitrator of the Arbitral Tribunal;

(d)    within thirty (30) days after the receipt of notification of the appointment by a party of an arbitrator and the other party has not given the first party notification of the arbitrator he has appointed, the first party may request the appointing authority previously designated by the parties to appoint the second arbitrator;

(e)    within thirty (30) days after the appointment of the second arbitrator and the two arbitrators have not agreed on the choice of the third and presiding arbitrator, the third and presiding arbitrator shall be appointed by the appointing authority on the request of either or both parties;

(f)     the Arbitration Agreement entitles each party to the Arbitration Agreement to nominate an arbitrator; and where the parties to the dispute number more than two, and such parties have not all agreed in writing within 30 days that the disputing parties represent two separate sides for the formation of the Arbitral Tribunal as Claimant and Respondent respectively, then the appointing authority shall have power to appoint the Arbitral Tribunal without regard to any party’s nomination;

(g)    when the appointing authority is requested to appoint an arbitrator pursuant to the provisions of this Section, the person making the request shall send to the appointing authority a copy of the notice of arbitration, a copy ..,f the contract out of or in relation to which the dispute has arisen and a copy of the Arbitration Agreement if the term is not contained in the contract, and the appointing authority may require from the requesting person.., such information as it deems necessary to fulfil its functions;

(h)    when the names of one or more persons are proposed for appointment as arbitrators, their full names, addresses and nationalities shall be indicated, together with details of their qualifications;

(i)     except as otherwise agreed by the parties, no person shall be disqualified from being appointed as an arbitrator by reason only of nationality; and

(j)     in making the appointment, the appointing authority shall have regard to such considerations as are likely to secure the appointment of an independent and impartial arbitrator knowledgeable in the field of the subject matter of the dispute and shall take into account as well, the advisability of appointing an arbitrator of a nationality other than the nationalities of the parties.

(4)    Where no procedure is specified under subsection (1) of this Section and no appointing authority is designated or agreed to be designated by the parties-

(a)    in the case of an arbitration with three arbitrators, each party shall appoint one arbitrator and the two so appointed shall appoint the third. However, if-

(i)     a party fails to appoint the arbitrator within thirty (30) days of receipt of a request to do so by the other party, that other party, having duly appointed its arbitrator, may give notice in writing to the party in default proposing the appointment of its arbitrator to act as sole arbitrator;

(ii)    the party in default does not within seven (7) clear days of that notice being given, make the required appointment and notify the other party of the name of its arbitrator, the other party may appoint its arbitrator as sole arbitrator whose award shall be binding on the parties as if the sole arbitrator had been so appointed by agreement; and

(iii)    the two arbitrators fail to agree on the third and presiding arbitrator within thirty (30) days of their appointments, the appointment shall be made by the Lagos Court of Arbitration on the application of any party to the Arbitration Agreement.

(b)    in the case of an arbitration with one arbitrator, where the parties fail to agree on the arbitrator, the appointment shall be made by the Lagos Court of Arbitration on the application of any party to the Arbitration Agreement made within thirty (30) days of such disagreement.

(c)    except as otherwise specifically provided under this Law, where under anappointment procedure agreed upon by the parties

(i)     a party fails to act as required under the procedure;

(ii)    the parties or two arbitrators are unable to reach an agreement as required under the procedure; or

(iii)    a third party, including an institution, fails to perform any duty imposed on it under the procedure; and

(iv)   then any party or arbitrator may request the Lagos Court of Arbitration to take the necessary measure, unless the appointment procedure agreed upon by the parties provides other means for securing the appointment.

(5)    No appointment made pursuant to subsection (4) of this Section. shall be challenged except in accordance with the provisions of this Law.

(6)    The Lagos Court of Arbitration in exercising the power of appointment under subsections (3) and (4) of this Section shall have due regard to any qualification required of the arbitrator by the Arbitration – Agreement and such other consideration as are likely to secure the appointment of an independent, impartial and competent arbitrator.

(7)    Under the provisions of this Law, all references to “third and presiding” arbitrator shall be construed as including an “additional” arbitrator appointed under Section 7(2) of this Law.

 

  1. Umpire.

(l)     Where the parties have agreed that there is to be an umpire, they are free to agree on the functions of the umpire and in particular

(a)    whether the umpire is to attend the proceedings, and

(b)    when the umpire is to replace the other arbitrators as the Arbitral Tribunal with power to make decisions, orders and awards.

(2)    If, there is no such agreement, the following provisions will apply

(a)    The umpire shall attend the proceedings and be supplied with the same documents and other materials as are supplied to the other arbitrators;

(b)    Decisions, orders and awards shall be made by the other arbitrators unless they cannot agree on a matter relating to the arbitration. In that event, they shall immediately give notice in writing to the parties and the umpire, whereupon the umpire shall replace them as the Arbitral Tribunal with power to make decisions, orders and awards as if the umpire was the sole arbitrator;

(c)    If the arbitrators cannot agree but fail to give notice of that fact, or if any of them fails to join in the giving of notice, any party to the arbitral proceedings may (upon notice to the other parties and to the Arbitral Tribunal) apply to the Lagos Court of Arbitration which shall give the required notice in writing to the parties and the umpire that the umpire shall replace the other arbitrators as the Arbitral Tribunal. He shall have the power to make decisions, orders and awards as if the umpire was the sole arbitrator; and

(d)    The provisions of this Law in relation to the appointment, challenge and removal of a third and presiding arbitrator shall also apply to the appointment, challenge and removal of an umpire.

 

  1. Ground for Challenge

(1)    Any person who knows of any circumstances likely to give rise to any justifiable doubts as to impartiality or independence shall, when approached in connection with an appointment as arbitrator, disclose such circumstances to the parties.

(2)    The duty to disclose imposed under subsection (I) of this Section shall continue after a person has been appointed as an arbitrator and subsist throughout the arbitral proceedings, unless the arbitrator had previously disclosed the circumstances to the parties.

(3)    An arbitrator may be challenged if

(a)    circumstances exist that give rise to justifiable doubts as to the arbitrator’s impartiality or independence,

(b)    the arbitrator does not possess the qualifications agreed by the parties;

(c)    the arbitrator is physically or mentally incapable of conducting the proceedings or there are justifiable doubts as to the arbitrator’s capacity to do so; or

(d)    the arbitrator has refused or failed to use all reasonable despatch in conducting the proceedings or making an award, and that substantial injustice has been or will be caused to the applicant.

 

  1. Challenge of an Arbitrators Procedure

(1)    The parties are tree to agree on the procedure to be followed in challenging an arbitrator in ad-hoc arbitration or may designate or agree to designate an appointing authority of their choice for the purpose of challenging an arbitrator.

(2)    Where no procedure is agreed, a party who intends to challenge an arbitrator shall, within fifteen (15) days of becoming aware of the constitution of the Arbitral Tribunal or becoming aware of any circumstances referred to in Section 10 of this Law, send to the Arbitral Tribunal and other parties, a written statement of the reasons for the challenge.

(3)    When an arbitrator has been challenged by one party, if the other party agrees to the challenge or the challenged arbitrator, after the challenge withdraws from office, then the appointment of the arbitrator shall cease.

(4)    Where the other party agrees to the challenge or the challenged arbitrator withdraws, the procedure provided in Section 8 of this Law shall be used in full for the appointment of the substituted arbitrator, even if during the process of appointing the challenged arbitrator, a party had failed to exercise his right to appoint or to participate in the appointment.

(5)    Unless the arbitrator who has been challenged withdraws from office or the other party agrees to the challenge, the Arbitral Tribunal or where the parties have designated an arbitral institution as the appointing authority, or where such an authority is determined in accordance with the provisions of this Law, the appointing authority shall decide on the challenge.

 

  1. Removal of an Arbitrator.

(1)    A party to an arbitral proceeding may (upon notice to the other parties, to the arbitrator concerned and to any other arbitrator) apply to the Court to remove an arbitrator on the grounds that (a) circumstances exist that give rise to justifiable doubts as to the arbitrator’s impartiality or independence;

(b)    the arbitrator does not possess the qualifications required by the Arbitration Agreement;

(c)    the arbitrator is physically or mentally incapable of conducting the proceedings or there are justifiable doubts as to the arbitrator’s capacity to do so; and

(d)    the arbitrator has refused or failed to use all reasonable despatch in conducting the proceedings or making an award, and that substantial injustice has been or will be caused to the applicant.

(2)    If there is an arbitral or other institution or person vested by the parties with power to remove an arbitrator, the Court shall not exercise its power of removal unless satisfied that the applicant has first exhausted any available recourse to that institution or person.

(3)    The Arbitral Tribunal may continue the arbitral proceedings and make an award while an application to the Court under this Section is pending.

(4)    The arbitrator concerned is entitled to appear before and be heard by the Court with or without legal representation before it makes any order under this Section.

(5)    Where the Court removes an arbitrator, it may make such order as it thinks fit with respect to the arbitrator’s entitlement (if any) to fees and expenses including indemnity for legal expenses, or the refund of any fees or expenses already paid.

 

  1. Termination of Mandate.

The mandate of an arbitrator shall terminate if

(a)    the parties agree to terminate the arbitrator’s appointment; or

(b)    the arbitrator is removed by an arbitral or other person(s) vested by the parties with powers in that regard.

 

  1. Registration

(1)    The parties are tree to agree with an arbitrator as to the consequences Resignation. of the arbitrator’s resignation as regards

(a)    the arbitrator’s entitlement (if any) to fees or expenses, and

(b)    any liability incurred by the arbitrator.

(2)    Where there is no such agreement the following provisions shall apply-

(a)    an arbitrator who resigns may (upon notice to the parties) apply to the Court;

(i)     to grant the arbitrator relief from any liability incurred and

(ii)    to make such order as it thinks fit with respect to the arbitrator’s entitlement (if any) to fees or expenses or the repayment of any fees or expense already paid.

(b)    if the Court is satisfied that in all the circumstances it was reasonable for the arbitrator to resign, it may grant such relief as mentioned in subsection (2)(0) above on such terms as it thinks fit.

 

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