HOW “ADR” WORKS IN LAGOS

Disputes are a necessary part of human endeavor and in Nigeria parties to a dispute commonly resort to the Law Courts to determine the validity or otherwise of their positions. Its however a fact that most Nigerians are reluctant to approach the courts because of the various delays in getting results which has led to aggrieved persons taking laws into their hands or trying to influence the law enforcement agents to deal with their perceived opponents.The cost and delays associated with litigation is not peculiar to Nigeria but rather a worldwide phenomenon which has led to the development of Alternative Dispute Resolution Systems (usually referred to as ADR) which essentially is a means of settling disputes outside of the courtroom.

In Nigeria, the Lagos State Government has blazed the trail by creating the Lagos Multi Door Court (LMDC) whose basic function is to allow easy access to justice, reduce delay, and generally assists parties to reach agreements that meet their interests, preserve relationships, save time and money. This week we discuss types, benefits, process of ADR with emphasis on the Lagos Multi Door Court House (LMDC).

The LMDC is empowered by Law to handle all manner of cases including but not limited to banking, divorce, maritime, telecommunication, energy, administrative, civil rights, education, employment, environmental, insurance, intellectual property/ technology, labour, personal injury, probate, product liability, professional malpractice/ negligence, real property, securities etc.

HOW IT WORKS

When Disputes occur, parties traditionally resort to the single door of “courtroom litigation” however the LMDC provides alternative doors to resolve disputes which include:

Mediation Door:

This is a voluntary, private and informal process in which a neutral third party, the mediator, helps disputants reach a mutually acceptable agreement. Mediation provides great opportunity for parties to actively participate in problem solving and explore interests together. The mediator does not render a decision, but rather, guides the parties in reaching an agreement. At the LMDC, once an agreement has been reached by the parties, the Terms of Settlement are reduced into writing and this constitutes a binding and enforceable contract. For Walk-In matters , if the parties so decide, such an agreement can be endorsed by the ADR Judge and becomes a Consent Judgment of the High Court of Lagos State and enforced as such.

Arbitration Door:

Arbitration is a simplified means of trial without the technicalities of court-room litigation. In Arbitration, a dispute is submitted to an Arbitral Tribunal for resolution, and the tribunal gives a binding Award which is enforceable by the court. The Arbitral Tribunal may consist of one or more Arbitrators.

Early Neutral Evaluation (ENE) Door:

Early Neutral Evaluation is a preliminary assessment of facts, evidence or legal merits by a neutral who may be a retired Judge, an experienced lawyer or such person with the requisite background and expertise in a given field of endeavour. The report or assessment of a Neutral Evaluator is not binding, but provides an unbiased evaluation of relative positions, as well as guidance as to the likely outcome if the case were to be heard in court. The process is designed to serve as a basis for further and fuller negotiations or, at the very least, to help parties avoid unnecessary stages in litigation.

Hybrid Door:

The Hybrid Door is the creative mix of various ADR mechanisms like mediation, arbitration, neutral evaluation in order to obtain a settlement or resolution that is best suited for the particular case. Some of the Hybrid models of ADR include Arb-Med (Arbitration and Mediation), Med-Arb (Mediation and Arbitration), Med- ENE (Mediation and Early Neutral Evaluation).

BENEFITS

The benefits of approaching the LMDC depends on the needs and interests of the parties. The most common advantages are:

1. A settlement can be reached much more quickly than in litigation.
2. It affords more creative options or solutions than litigation and also accommodates the special needs of the parties.
3. It’s a confidential process and information exchanged may not be disclosed to third parties to the process.
4. Parties are directly engaged in negotiating the settlement as they have a choice not to use a Lawyer. However if your case involves substantial property or legal rights, you may want to consult with a lawyer to discuss the legal consequences of possible settlement.
5. Parties enhance the possibility of continuing a relationship with each other.
6. Settlements at the LMDC are enforceable like a Judgment of Court. Section 19 of the LMDC Law provides that upon the completion of an ADR proceeding, Settlement Agreements which are duly signed by the parties shall be enforceable as a contract between the parties and when such agreements are further endorsed by an ADR Judge, it shall be deemed to be enforceable as a judgment of the High Court of Lagos State.

PROCESS FOR INITIATING MATTERS AT LMDC.

Matters may be initiated in three ways at the LMDC, and this include:

1. Walk-Ins- Any party to a dispute may initiate Mediation, Arbitration, Early Neutral Evaluation or any other ADR service by visiting the LMDC or writing to its Director. Matters from other reputable ADR organizations may be filed at the LMDC for settlement.
2. Court Referral- The Presiding Judge in a matter already in litigation or in the course of a pre-trial conference may in appropriate circumstances refer parties to The LMDC. Apart from the High Court of Lagos State matters may be referred to the LMDC from the Federal High Courts or Courts of other jurisdictions outside Lagos.
3. Direct Interventions- The LMDC through the Director may, in circumstances where the public interest or the interest of the disputing parties so demand, approach the parties with a view to assisting in the resolution of their dispute.

APPLICABLE FEES

Administrative fees: A non-refundable administrative fee shall be paid by every corporate body, professional firm, foundation or individual that brings a matter to or that is brought as a party to the LMDC. This administrative fee is a deposit towards logistics and administrative services which could vary depending on the extent of administrative involvement in the particular case.

Session fees: The fees payable for sessions are dependent on the category into which the matter falls and the dispute resolution process (Mediation, Arbitration or Early Neutral Evaluation) recommended or stipulated in the contract, if any. The specific details of these fees are contained in the Service Booklet of the LMDC.

Cancellation/Default Fee: In the event that an already scheduled session is cancelled by any of the parties or for failure or neglect to attend sessions, such party will be required to pay a cancellation fee or a default fee as directed.

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