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ARBITRAL AWARDS HAVE SAME FORCE AS A JUDGEMENT OF A COURT

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Onwu v. Nka (1996) 7 NWLR (Pt.458) 1 at 17 paragraph E, where the Supreme Court, per Iguh JSC. had this to say: “The law is well settled that where disputes or matters in difference between two or more parties are by consent of the disputants submitted to a domestic forum inclusive of arbitrators or a body of persons who may be invested with judicial authority to hear and determine such disputes and matters for investigation in accordance with customary law and general usages, and a decision is duly given, it is as conclusive and unimpeachable (unless and until set aside on any of the recognized grounds) as the decision of any constituted court of the land, such a decision is consequently binding on the parties and the courts in appropriate cases will enforce it.”

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arbitration, judgement

IMPORTANCE OF COURT IN RESOLVING DISPUTES AS AGAINST ARBITRATION

589. The privacy of arbitration meant that there was no public or press scrutiny of what was going on and what was not being done. When courts are concerned it is often said that the “open court principle” helps keep judges up to the mark. But it also allows scrutiny of the process as a whole, and what the lawyers and other professionals are doing, and (where a state is involved) what the state is doing to address a dispute on behalf of its people. An open process allows the chance for the public and press to call out what is not right.
591. And Lord Wolfson KC will forgive my quoting his submission for his client in oral closing argument: “Section 68 is not there to give you a remedy if you instruct an honest lawyer who makes a mess of it or doesn’t take an available point. That is just tough. You have made your arbitration bed and you lie on it”. Blunt and correct. But, unless accompanied by public visibility or greater scrutiny by arbitrators, how suitable is the process in a case such as this where what is at stake is public money amounting to a material percentage of a state’s GDP or budget? Is greater visibility in arbitrations involving a state or state owned entities part of the answer?
— R. Knowles CBE. FRN v. Process & Industrial Developments Limited [2023] EWHC 2638 (Comm)

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JUDGEMENT OF COURT REMAINS VALID UNTIL SET ASIDE; COURT OF COORDINATE JURISDICTION CANNOT SET ASIDE COORDINATE COURT JUDGEMENT

It is now settled firstly, that a judgment or order of a court of competent jurisdiction, remain valid and effective, unless it is set aside by an appeal court or by the lower court itself if it found that it acted without jurisdiction. See the cases of Ogueze v. Ojiako (1962),SCNLR 112; (1962) 11 All NLR 58 at 61; Williams v. Sanusi (1961) All NLR 334 at 337; Odiase v. Agbo (1972) 1 All NLR (Pt.1) 170 at 176; Melifonwu v. Egbuyi (1982) 9 SC 145; Ajao v. Alao (1986) 5 NWLR (Pt. 45) 802 at 823 and many others. Secondly, in the absence of statutory authority or except where the judgment or order is a nullity, one Judge, has no power, to set aside or vary the order of another Judge of concurrent and co-ordinate jurisdiction. See the cases of Amanabu v. Okafor (1966) 1 All NLR 205 at 207; Okorodudu v. Ejuetami (1967) NMLR 282 at 283; Akporue & Anor v. Okei (1973) 12 SC 137; Uku v. Okumagba (1974)1 All NLR (Pt. 1)475; Wimpey(Nig.)Ltd. v. Balogun (1986) 3 NWLR (Pt. 28) 324 at 331 and Orthopaedic Hospital Management Board v. B. B. Apugo & Sons Ltd. (1990) 1 NWLR (Pt.129) 652 at 657 just to mention but a few. The rationale or reason for this, is because, it is now firmly established that there is only one High Court in a State.

— I.F. Ogbuagu, JSC. Witt Ltd. v Dale Power (2007) – SC.240/2000

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ARBITRATION AND LITIGATION ARE NOT MUTUALLY EXCLUSIVE

By the provisions of the Arbitration and Conciliation Act, parties to a contract can include an arbitration clause which allows for disputes to be settled by arbitration instead of litigation. At the end of the arbitration process, the agreement reached (i.e the award) will be enforced by the Courts after registration in Court. Where parties opt to arbitrate over disputes, it does not automatically oust the jurisdiction bestowed on the Court by the 1999 CRFN. Section 2(2) of the Arbitration Act states follows: “Unless a contrary intention is expressed therein, an arbitration agreement shall be irrevocable except by agreement of parties or by leave of the Court or judge.” (emphasis mine) Although it is preferable in many cases to go to arbitration rather than go to Court, it should be noted that arbitration and litigation are not mutually exclusive. Indeed the Court often complements and supplements the functions and powers of the arbitrator. For example, by stay of Court proceedings in appropriate cases; by the issue of subpoena; by making appointments where the parties cannot agree or where a party defaults; for the enforcement of awards and for setting aside awards where necessary. In these cases, the Court intervenes to ensure the proper functioning of arbitration.

— H.M. Ogunwumiju, JSC. UBA v Triedent Consulting Ltd. (SC.CV/405/2013, July 07, 2023)

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JUDGMENT MUST BE CONFINED TO ISSUES RAISED

It is well settled that a judgment must be confined to the issues raised on the pleadings. Where it is otherwise the court will be making a case for the parties by formulating its own case from the evidence and then proceeding to give judgment. No gratuitous awards are to be made by the court.

– Karibe-Whyte, JSC. Oniah v. Onyia (1989)

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PARTY CAN APPLY TO COURT TO SET ASIDE AN ARBITRATION AWARD

The provisions simply provide any of the parties to an arbitration award a discretionary right to request, pray for or seek from a Court of law, an order refusing or declining to accord judicial recognition or enforcement of the arbitral award between them. By dint of the provisions, a party to an arbitral agreement is vested with and possesses the unfettered right to approach a Court of law to request that the arbitration award between the parties, should not be recognized and enforced by the Court. The provisions merely provide a right of access to a Court of law for the sole purpose of requesting for or seeking an order that would refuse to recognize and/or enforce an arbitral award the parties thereto, to any one of them.

– Garba, JCA. Dunlop v. Gaslink (2018)

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GENERAL PRINCIPLES APPLICABLE IN REGULAR COURTS ARE NOT APPLICABLE IN ARBITRATION PROCEEDINGS

In this context, the general principles of law laid down and applicable to and in proceedings of the regular Courts in the process of judicial adjudication of causes or matters before them do not ordinarily apply to such quasi judicial arbitral proceedings which the parties by their free and voluntary choice, opted to resort to in the settlement of their disputes rather than the judicial/adjudication of the regular Courts.

– Garba, JCA. Dunlop v. Gaslink (2018)

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