DETHRONING AN ARBITRATION AGREEMENT: IS YOUR COMMERCIAL ARBITRATION AGREEMENT VALID IN NIGERIA?

Abstract

This topic subscribes very strongly to the quest for the enforcement of an agreement to arbitrate. Sometimes, when a dispute arises, it may not be easy to get an arbitration to take off, even where an agreement covering the dispute is in existence. This sort of situation may arise either because one of the parties is reluctant to arbitrate or because he ignores the agreement and commences an action in court against the other party on the very dispute which should be resolved by arbitration, thus the need for the enforcement of the commercial arbitration agreement. Findings show that the courts in developing countries such as Nigeria do not only recognize the place of arbitration in dispute settlement but also cloth arbitral awards with the garb of estoppels per rem judicatam thereby discouraging the dethronement of arbitration agreements.1 Parties to disputes may therefore agree, or statute may stipulate, that such issues be referred to arbitration for resolution. Findings further show that an issue that will always arise is whether the vesting of jurisdiction in an arbitral tribunal constitutes an ouster of the court’s jurisdiction. However, it is recommended that extensive and explicit provisions should be added to the various Arbitration legislations and rules of developing countries to ensure the enforcement of commercial arbitral agreements.