The Lagos State House of Assembly, yesterday at the plenary session passed the bill for a law to establish the Lagos Court of Arbitration and for connected purposes into law and sent it to the Governor for assent.
The bill was read for the third time on the floor of the House before it was eventually passed.
The bill clearly stated functions of the courts to include among others, to promote resolution of disputes in the territory of Lagos State by arbitration and other Alternative Dispute Resolution mechanism apart from litigation.
The Arbitration Court was also mandated to maintain a Panel of Neutrals which shall consist of Arbitrators, Mediators as well as other experts’ endowed with special skills and experience in specialized areas and willing to be members of any Tribunal or Panel constituted by the Court of Arbitration in respect of any dispute referred to it.
The bill highlighted the derivation of powers for the Court of Arbitration and for proper discharge of its functions, stating that the Court shall have power to acquire and dispose of any interest in land or other properties, borrow or raise money with or without security for any of the purpose of the court of Arbitration, provided that no money shall be raised by mortgage of any real or personal property of the Court of Arbitration without consent or approval among others.
Membership of the Court shall be open to any person or bodies corporate with good standing and bona fide interest in Commercial Arbitration or Alternative Dispute Resolution, including but not limited to lawyers, arbitrators, mediator experts, academics, businessmen, Law firms, Commercial and trading organization who have satisfied laid down conditions including payment of an annual subscription to be determined by the Board of Directors from time to time.
In a similar development, the House of Assembly also passed the bill for a law to provide for the resolution of disputes by arbitration in Lagos State and Connected matters into law and also sent it to the Governor for Assent.
The bill by its provision shall obtain the resolution of disputes by an impartial tribunal without unnecessary delay. It would also allow parties to be free to agree on how their disputes are resolved subject only to such safeguards as necessary in the public interest.
The general principles of the law also stipulate that 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, in-effective or otherwise unenforceable.
