ANALYSIS OF THE STRENGTHS AND WEAKNESSES OF ALTERNATIVE DISPUTE RESOLUTION (ADR) IN COMMERCIAL DISPUTES

ABSTRACT

The crux of this essay was to study the practice of Alternative Dispute Resolution in Commercial Disputes and examined different ADR mechanisms and their strength and weaknesses. The study examined the workability and reality of these advantages and the disadvantages too in the world of commerce with a view to making appropriate recommendations.

 The research methodology adopted in this study is the library research method. The study relied on primary and secondary sources of information. The primary sources include foreign and Nigerian statutes such as the Arbitration and Conciliation Act, the United Nations Commission on International Trade Law, judicial decisions and international conventions such as, United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958 (the New York Convention).  The secondary sources include textbooks, journals, articles and materials gotten from the internet.

This study found that the practice of Alternative Dispute Resolution in Commercial Disputes is increasing on the global platform and the Nigerian platform. This study also found that a perfect blend of ADR into the commercial world is necessary for effective dispute resolution. Although, ADR does come with its challenges, this study found that ADR is still a more viable alternative to commercial dispute resolution when considering the challenges of its counterpart – litigation.

The study concluded that both ADR and litigation must work concurrently as vehicles of dispute resolution in order to achieve both efficiency and effectiveness. This study further concluded that the features of each ADR mechanism are unique and that the choice of mechanism should be dependent on the specific nature of dispute and the aim of the parties concerned.

TABLE OF CONTENTS

TITLE PAGE ………………………………………………………………………………. i

CERTIFICATION…………………………………………………………………………. ii

DEDICATION ………………………………………………………………………………iii

ACKNOWLEDGEMENTS…………………………………………………………………iv

TABLE OF STATUTES…………………………………………………………………….vi

TABLE OF CASES……………………………………………………………………….... vii

LIST OF ABBREVIATIONS………………………………………………………………viii

TABLE OF CONTENTS……………………………………………………………………ix

ABSTRACT…………………………………………………………………………............xiv

CHAPTER ONE –   1.0. GENERAL INTRODUCTION

1.1                  Background to the Study……………………………………………………………. 1

1.2                  Statement of Research Problem…………………………………………................... 4

1.3                  Aim and Objectives of the Study…………………………………………. …………5

1.4                  Research Methodology……………………………………………………………….5

1.5                  Scope and Limitation of the Study…………………………………………………... 6

1.6                  Structure of the Study………………………………………………………………... 6

 

CHAPTER TWO – 2.0. COMMERCIAL DISPUTES AND MODES OF DISPUTE RESOLUTION

  2.1            The Meaning and Scope of Commercial Disputes………………………… ………......8

  2.2            Mode of Resolution of Commercial Disputes……………………………....................10

2.2.1.                  Litigation……………………………………………………………....11

2.2.2.                  Alternative Dispute Resolution…………………………………….….14

  2.3             Meaning of Alternative Dispute Resolution (ADR)……………….……………….....15

  2.4            Forms of Alternative Dispute Resolution …………………………………. …………18

2.4.1.                  Negotiation………………………………………………………….....20

2.4.2.                  Conciliation……………………………………………………………20

2.4.3.                  Mediation……………………………………………………………...21

2.4.4.                  Arbitration……………………………………………………………..22

2.4.5.                  Med-Arb…………………………………………………………….....22

2.4.6.                  Online Dispute Resolution………………………………………….....23

2.4.7.                  Pre-trial Conference…………………………………………………...24

  2.5            Comparison between ADR and Litigation………………………………………… …24

 

CHAPTER THREE – 3.0.  ARBITRATION IN COMMERCIAL DISPUTES

  3.1             Arbitration……………………………………………………................................. ...27

                    3.1.1            Definition of Arbitration………………………………………………………27

                    3.1.2            Features of Arbitration………………………………………………………..28

                    3.1.3            Arbitration: Litigation or ADR………………………………….....................31

                    3.1.4            Forms of Commercial Arbitration…………………………………………....33

  3.2            Arbitration of Commercial Disputes…………………………………………………35

                    3.2.1            Arbitration of Commercial Disputes under Common Law…………………..36

                    3.2.2            Arbitration of Commercial Disputes under Modern Law ……………………37

  3.3            International Commercial Arbitration ………………………………………………. 38

                    3.3.1            Meaning of International Commercial Arbitration…………………………...38

                    3.3.2            Legal Framework for International Commercial Arbitration………………....39

                    3.3.3            The International Chamber of Commerce (ICC)……………………………..44

  3.4            Arbitration in Intellectual Property Disputes ………………………………...............45

                    3.4.1            Definition of Intellectual Property……………………………………………48

                    3.4.2            Arbitrability of IP Disputes…………………………………………………...49

                    3.4.3            The WIPO Arbitration Rules…………………………………………………52

  3.5            Advantages of Arbitration in Commercial Dispute Resolution ……………………..60

 

CHAPTER FOUR – 4.0. MEDIATION, CONCILIATION, NEGOTIATION AND ONLINE DISPUTE RESOLUTION IN COMMERCIAL DISPUTES

  4.1            Mediation…………………………………………………………………………… 64

                    4.1.1            Historical Background of Mediation…………………………………………64

                    4.1.2            Meaning of Mediation………………………………………………………..66

                    4.1.3            Features of Mediation………………………………………………………...67

                    4.1.4            Types of Mediation…………………………………………………………...69

  4.2            Mediation in Commercial Disputes……………………………………………………70

                    4.2.1            Legal Framework for Mediation in Commercial Disputes…………………….73

                    4.2.2            Mediation of Commercial Disputes in Nigeria………………………………..75

  4.3            Mediation in Construction Disputes…………………………………………………...77

  4.4            Conciliation of Commercial Disputes……………………………………. …………...84

                    4.4.1            Legal Framework for Conciliation of Commercial Disputes………………….85

                    4.4.2            Conciliation of Commercial Disputes in Nigeria………………………………87

  4.5            Negotiation of Commercial Disputes…………………………………………… ……87

  4.6            Online Dispute Resolution (ODR) ……………………………………………………88

                    4.6.1            Meaning of Online Dispute Resolution……………………………………….89

                    4.6.2            Framework for Online Dispute Resolution……………………………………93

  4.7            Advantages of Mediation, Online Dispute Resolution, Conciliation, Negotiation in Commercial Disputes………………………………………………………………… 93

                    4.7.1            Advantages of Mediation in Commercial Disputes ……………….................. 93

                    4.7.2            Advantages of Online Dispute Resolution in Commercial Disputes.................96

                    4.7.3            Advantages of Conciliation and Negotiation in Commercial Disputes………100

CHAPTER FIVE – 5.0. IDENTIFIED CHALLENGES OF ADR IN COMMERCIAL DISPUTE RESOLUTION………………………………………………………………….101

  5.1            Challenges Inherent in Arbitration …………………………………………………. 102

  5.2            Challenges Inherent in Mediation…………………………………………………… 106

  5.3            Challenges Inherent in Online Dispute Resolution…………………………….......... 110

  5.4            Challenges Inherent in Negotiation………………………………………………. ….112

 

CHAPTER SIX –   6.0.  SUMMARY, CONCLUSION AND RECOMMENDATION

  6.1            Summary…………………………………………………………………. ………..113

  6.2            Conclusion……………………………………………………………….................115

  6.3            Recommendation…………………………………………………………………...115

 

BIBLIOGRAPHY………………………………………………………………. ……….117