Arbitration & ADR Explained
Alternative Dispute Resolution (ADR) is the acronym used to describe the range of mechanisms for settling disputes outside the court system. ADR usually involves the intercession and assistance of a third party. The third party is neutral, impartial and independent. ADR may be classified as binding or non-binding. The most common form of binding ADR is arbitration.
Arbitration is a judicial process which involves the resolution of the dispute by a third party called the arbitrator. The decision of the arbitrator is referred to as an award. The award is binding and of the same status as a court judgment.
“Arbitration proceedings as I have already shown are not the same things as negotiations for settlement out of the Court. An award made pursuant to arbitration to arbitration proceedings constitutes a final judgment on all matters referred to the arbitrator. It has a binding and it shall upon application in writing to the Court, be enforced by the Court….an award is on par with a judgment of the Court”- Per the Hon. Justice Kastina-Alu JSC in Ras Pal Gazi Construction Company Ltd vs. Federal Capital Development Authority (2001) 10 NWLR Pt. 722, 559 at 571, Par C-H
Other ADR processes usually depend on voluntary compliance by the parties with the outcome of the process.
Benefits of ADR
It is more beneficial for parties to resolve their disputes through dialogue and negotiated agreement than through litigation, which of times is protracted. Arbitration, even if not a negotiated solution being a judicial proceeding has as its fundamental objective “the expeditious resolution of disputes”.
Other Benefits of ADR include:-
1) Cost effectiveness
4) Enhancement of private and business relationships
5) Avoidance of the risks of litigation
7) Party Autonomy
Forms of ADR Processes
4) Early Neutral Evaluation
7) Executive Review Boards
The above is not exhaustive. New forms are being developed including hybrid forms such as Med-Arb. The emphasis is on devising a procedure which best suits the parties.
Our team is composed of trained and experienced ADR practitioners. We can represent you in ADR proceedings. Any of our team members may be appointed as arbitrator or 3rd party neutral in your dispute resolution process.
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