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LAGOS CHAMBER ARBITRATION CENTRE
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RULES OF ARBITRATION

PREFACE

The Lagos Chamber Arbitration Centre (LAC) was established in 2001 under the auspices of the Lagos Chamber of Commerce and Industry (LCCI).  It is registered as a company under the Companies and Allied Matters Act of Nigeria, 1990, to provide facilities and services for the resolution of domestic and international commercial and other disputes through arbitration, meditation, conciliation and negotiation.  The Chamber has thus acted in pursuance of its mandate to protect promote and champion the interests of the business community nationally and internationally.

 

2.       The Centre has a Board of Governors appointed by the General meeting to supervise its activities.  The Governors may issue Bye-Laws for the running of the affairs of the Centre.

 

3.       The Centre has a Court of Arbitration whose members are appointed by the Board of Governors.  The Court meets from time to time but not less than once a quarter.

 

4.       The Court draws up the Rules of Mediation, Conciliation, Negotiation and Arbitration and ensures the application of these Rules.  It scrutinizes Arbitrations’ awards in draft form and, without prejudice to the inviolability of the independence of the Arbitrator's judgment or decision, may draw attention to matters of form and procedure as required by the Rules and, exceptionally, to matters of substance.

 

The Secretariat of the Centre is at the headquarters of the Lagos Chamber of Commerce and Industry and is headed by a Secretary General who is both the Secretary of the Centre and the Court, by himself or by his representative.

 

SECTION 1 – Introductory Rules

 

Article 1

-          Scope of application

1.           Where parties to a contract have agreed in writing that disputes in relation to that contract shall be referred to arbitration under the Rules of the Lagos Chamber Arbitration Centre (the Centre), then such disputes shall be settled in accordance with these Rules subject to such modification as the parties may agree in writing.  These Rules and any amendment thereof shall apply in the form obtaining at the time the arbitration is initiated.

2.           These Rules shall govern the arbitration except that where any of Rules are in

 conflict with a provision of the law applicable to the arbitration from which the

 parties cannot derogate, that provision shall prevail.

 

Article 2

 

 

 

 

 

 

 

 

 

 

 

 

-          Notification, calculation of periods of time

1.  For the purposes of these Rules, any notice, including a notification, communication or proposal, is deemed to have been received if it is physically delivered to the addressee or if it is delivered at his habitual residence, place of business or mailing address, or, if none of these can be found after making reasonable inquiry, then at the addressee’s last-known residence or place of business.  Notice shall be deemed to have been received on the day it is so delivered.

 

2.     For the purpose of calculating a period of time under these Rules, such period shall begin to run on the day following the day when a notice, notification, communication or proposal is received.  If the last day of such period is an official holiday or a non-business day at the residence or place of business of the addressee, the period is extended until the first business day, which follows.  Official holidays or non-business days occurring during the running of the period of time are included in calculating the perio

Article 3

-          Initiating Procedure

1.     The party initiating recourse to arbitration (hereinafter called the “claimant”) shall give to the other party (hereinafter called the “respondent”) a notice of arbitration

2.     Arbitral proceedings shall be deemed to commence on the date on which the notice of arbitration is received by the respondent.

3.     The notice of arbitration to the Centre shall include the following:

a.          A written request that the dispute be referred to arbitration;

b.          The names and addresses of the parties;

c.           A copy of the arbitration clause or the separate arbitration agreement that is involved;

d.          A reference to or a copy of the contract out of or in relation to which the dispute arises;

e.          A brief statement describing the nature and circumstances of the dispute, and specifying the claims advanced by the claimant against respondent, indicating the amount involved, if any,

f.            The relief or remedy sought

g.          A proposal as to the number of arbitrators (i. e. one or three), if parties have not previously agreed thereon.

h.          Where the arbitration agreement calls for party nomination of arbitrators, the name, address, telephone, facsimile and e-mail numbers(if any) of claimant’s nominees.

i.            The notification of the appointment of an arbitrator

j.            The statement of claim (see Art. 5)

 

Article 4

-                                     Multiple Parties

Wh  Where there are multiple parties, whether as claimant or as respondent, and where the dispute is to be referred to three arbitrators, the multiple claimants, jointly, and the multiple respondents, jointly, shall each nominate an arbitrator for confirmation pursuant to Article 12.

 

In   In the absence of such a joint nomination and where all parties are unable to agree to a method for the constitution of the arbitral tribunal, the Centre may appoint each member of the arbitral tribunal and shall designate one of them to act as chairman.  In such a case, the Centre shall be at liberty to choose any person it regards as suitable to act as arbitrator, applying Article 12 as appropriate.

 

 

 

Article 5 – Statement of Claim

1.       Unless the statement of claim was contained in the notice of arbitration, within a period of time to be determined by the arbitral tribunal, the claimant shall communicate his statement of claim in writing to the respondent copied the centre and to each of the arbitrators.  A copy of the contract, and of the arbitration agreement if not contained in the contract, shall be annexed thereto.

 

2.       The statement of claim shall include the following particulars:

a.           The names and addresses of the parties;

b.          A statement of the facts supporting the claim;

c.           The points at issue;

d.          The relief or remedy sought

 

The claimant may annex to his statement of claim all documents he deems relevant or may add a reference to the documents or other evidence he will submit.

 

Article 6 – Change of Claim

After filing of the claim, a party desires to make any new or different claim, such claim shall be made in writing and filed with the Centre, and a copy thereof shall be given to the other party, who shall have a period of seven days from the date of such communication within which to file an answer with the Centre.  After the arbitrator is appointed, however, no new or different claim may be submitted except with the consent of the arbitrator.

 

Articled 7    -        Statement of defence

1.       Within a period of time to be determined by the arbitral tribunal, the respondent shall communicate his statement of defence in writing to the claimant and to each of the arbitrators with a copy to the Centre.

 

2.       The statement of defence shall contain a brief statement describing the nature and circumstances of the counterclaims, and in particular, confirm or deny all or part of the claims advanced by the claimant and shall reply to the particulars (b) (c) and (d) of the statement of claim (article 5 para 2).  The respondent may annex to his statement the documents on which he relies for his defence or may add a reference to the documents or other evidence he will submit.

 

3.       In his statement of defence, or at a later stage in the arbitral proceedings if the arbitral tribunal decides that the delay was justified under the circumstances, the respondent may make a counter-claim arising out of the same contract or rely on a claim arising out of the same contract for the purpose of a set-off.

 

4.       The provisions of article 5, paragraph 2, shall apply to a counter-claim and a claim relied on for the purpose of a set-off.

 

Article 8      Effect of the Arbitration Agreement

If any party to a contract raises or files one or more pleas concerning the existence, validity or scope of the arbitration agreement, the Centre may decide, without prejudice to the admissibility or merits of the plea or pleas, that the arbitration shall proceed if it is prima facie satisfied that an arbitration agreement under the Rules may exist.  In such a case, any decision as to the jurisdiction of the arbitral tribunal shall be taken by the arbitral tribunal itself.  If the Centre is not so satisfied, the parties shall be notified that the arbitration cannot proceed.  In such a case, any party retains the right to ask any court having jurisdiction whether or not there is a binding arbitration agreement

 

Article 9      Representation and assistance

The parties may be represented or assisted by persons of their choice.  The names and addresses of such persons must be communicated in writing to the other party, copied the Centre; such communication must specify whether the appointment is being made for purposes of representation, assistance or even advisers.

 

                   SECTION II – THE ARBITRAL TRIBUNAL

Article 10    Number of Arbitrators.

If the parties have not previously agreed on the number of arbitrators (i.e. one or three), and if within fifteen days after the receipt by the respondent of the notice of arbitration the parties have not agreed that there shall be only one arbitrator, three arbitrators shall be appointed.

 

Article 11-13 – Appointment of Arbitrators

 

Article 11

1.       If a sole arbitrator is to be appointed, either party may propose to the other:

a.           The names of one or more persons, one of whom should serve as the sole arbitrator; and

b.          The Centre shall serve as appointing authority

 

2.       If within thirty days after receipt by a party of a proposal made in accordance with paragraph 1 the parties have not reached agreement on the choice of a sole arbitrator, the sole arbitrator shall be appointed by the Centre.

 

3.       The Centre shall, at the request of one of the parties, appoint the sole arbitrator as promptly as possible.  In making the appointment the Centre shall use the following list-procedure, unless both parties agree that the list-procedure should not be used or unless the Centre determines in its discretion that the use of the list-procedure is not appropriate for the case:

 

a.           At the request of one of the parties the Centre shall communicate to both parties an identical list containing at least three names;

b.          Within fifteen days after the receipt of this list, each party may return the list to the centre after having deleted the name or names to which he objects and numbered the remaining names on the list in the order of his preference:

c.           After the expiration of the above period of time the Centre shall appoint the sole arbitrator from among the names approved on the list returned to it and in accordance with the order of preference indicated by the parties;

d.          If for any reason the appointment cannot be made according to this procedure, the centre may exercise its discretion in appointing the sole arbitrator.

 

4.       In making the appointment, the Centre shall have regard to such considerations as are likely to secure the appointment of an independent and impartial arbitrator and shall take into account as well the advisability of appointing an arbitrator of a nationality other than the nationalities of the parties.

 

Article 12    –

1.       If three arbitrators are to be appointed, each party shall appoint one arbitrator.  The two arbitrators thus appointed shall choose the third arbitrator who will act as the presiding arbitrator of the tribunal.

 

2.       If within thirty days after the receipt of a party’s notification of the appointment of an arbitrator the other party has not notified the first party of the arbitrator he has appointed, the first party may request the Centre to appoint the second arbitrator; and in doing so the Centre shall exercise its discretion in appointing the arbitrator

 

3.                 If within thirty days after the appointment of the second arbitrator the two arbitrators have not agreed on the choice of the presiding arbitrator, the presiding arbitrator shall be appointed by the Centre in the same way as a sole arbitrator would be appointed under article 12.

Article 13 –

1.                 When the Centre is requested to appoint an arbitrator pursuant to article 11 or article 13, the party which makes the request shall send to the Centre a copy of the notice of arbitration, a copy of the contract out of or in relation to which the dispute has arisen and a copy of the arbitration agreement if it is not contained in the contract.  The Centre may require from either party such information, as it deems necessary to fulfill its function.

 

2.                 Where the names of one or more persons are proposed for appointment as arbitrators their full names, addresses and nationalities shall be indicated, together with a description of their qualifications.

 

Articles (14 to 17) Challenges of arbitrators

Article 14    - Independence of arbitrators

          A prospective arbitrator shall disclose to those who approach him in connection with his possible appointment any circumstances likely to give rise to justifiable doubts as to his impartiality or independence.  An arbitrator, once appointed or chosen, shall disclose such circumstances to the parties unless they have already been informed by him of these circumstances.

 

Article 15 – Challenging the Arbitrator

1.       Any arbitrator may be challenged if circumstances exist that give rise

 to justifiable doubts as to the arbitrator’s impartiality or independence

2.                 A party may challenge the arbitrator appointed by him only for reasons of which he becomes aware after the appointment has been made.

Article 16

1.                 A party who intends to challenge an arbitrator shall send notice of his challenge to the Centre within fifteen days after the appointment of the challenged arbitrator has been notified to the challenging party or within fifteen days after the circumstances mentioned in articles 16 and 17 became known to that party.

 

2.                 The challenge shall be notified to the other party, to the arbitrator who is challenged and to the other members of the arbitral tribunal.  The notification shall be in writing and shall state the reasons for the challenge.

3.                 When an arbitrator has been challenged by one party, the other party may agree to the challenge.  In both cases the procedure provided in articles 11-12 shall be used in full for the appointment of the substitute arbitrator, even if during the process of appointing the challenged arbitrator a party had failed to exercise his right to appoint or to participate in the appointment.

 

Article 17

1.  If the other party does not agree to the challenge and the challenged arbitrator does not withdraw, the decision on the challenge will be made:

a.           When the initial appointment was made by the Centre, by that authority;

b.          In all other cases by the Centre.

3.                 If the Centre sustains the challenge, a substitute arbitrator shall be appointed or chosen pursuant to the provision of Articles11-13.

Article 18    Replacement of an arbitrator

1.                 In the event of death or resignation of an arbitrator during the course of the arbitral proceedings, a substitute arbitrator shall be appointed or chosen pursuant to the procedure provided for in articles 11 to 13 that was applicable to the appointment or choice of the arbitrator being replaced.

2.                 In the event that an arbitrator fails to act or in the event of the de jure or de facto impossibility of his performing his functions, the procedure in respect of the challenge and replacement of an arbitrator as provided in the preceding articles shall apply.

 

Article 19    - Repetition of hearings in the event of the replacement of an

 arbitrator

 

If under articles 18 to 19 the sole or presiding arbitrator is replaced, any hearings held previously shall be repeated; if any other arbitrator is replaced, such prior hearings may be repeated at the discretion of the arbitral tribunal.

 

SECTION III – ARBITRAL PROCEEDINGS

Article 20    -        General Provisions

1.       Subject to these Rules, the arbitral tribunal may conduct the arbitration in such manner, as it considers appropriate, provided the parties are treated with equality and that at any state of the proceedings each party is given a full opportunity of presenting his case.

2.       If either party so requests at any stage of the proceedings, the arbitral tribunal shall hold hearings for the presentation of evidence by witnesses, including expert witnesses, or for oral argument.  In the absence of such a request, the arbitral tribunal shall decide whether to hold such hearings or whether the proceedings shall be conducted on the basis of documents and other materials.

3.       All documents or information supplied to the arbitral tribunal by one party shall at the same time be communicated by that party to the other party.

 

Article 21    -        Place of Arbitration

1.       Unless the parties have agreed upon the place where the arbitration is to be held, such place shall be determined by the arbitral tribunal, having regard to the circumstances of the arbitration.

 

2.       The arbitral tribunal may determine the locale of the arbitration within the country agreed by the parties.  It may hear witnesses and hold meetings for consultation among its members at any place it deems appropriate, having regard to the circumstances of the arbitration.

 

3.       The arbitral tribunal may meet at any place it deems appropriate for the inspection of goods, other property or documents.  The parties shall be given sufficient notice to enable them to be present at such inspection.

 

4.       The award shall be made at the place of arbitration.

 

Article 22 – Language

1.       Subject to an agreement by the parties, the arbitral tribunal shall, promptly after its appointment, determine the language or languages to be used in the proceedings.  This determination shall apply to the statement of claim, the statement of defence, and any further written statements and, if oral hearings take place, to the language or languages to be used in such hearings.

 

2.       The arbitral tribunal may order that any documents annexed to the statement of claim, or statement of defence and any supplementary documents or exhibits submitted in the course of proceedings, delivered in their original language shall be accompanied by a translator into the language agreed upon by all concerned.

 

Article 23    -        Amendments to the claim or defence

During the course of the arbitral proceedings either party may amend or supplement his claim or defence unless the arbitral tribunal considers it inappropriate to allow such amendment having regard to the delay in making it or prejudice to the other party or any other circumstances.  However, a claim may not be amended in such a manner that the amended claim falls outside the scope of the arbitration clause or separate arbitration agreement.

Article 24 – Further written statements

The arbitral tribunal shall decide which further written statements, in addition to the statement of claim and the statement of defence, shall be required from the parties or may be presented by them and shall fix the periods of time for communicating such statements.  The period of time fixed by the arbitral tribunal for the communication of written statements (including the statement of claim and statements of defence) should not exceed forty-five days.  However, the arbitral tribunal may extend the time limits if it concludes that an extension is justified.

 

Article 25 Jurisdiction of the Arbitral Tribunal

1.                 The arbitral tribunal shall have the power to rule on its own jurisdiction, including any objection to the initial or continuing existence, validity or effectiveness of the arbitration agreement.  For that purpose, an arbitration clause which forms or was intended to form part of another agreement shall be treated as an arbitration agreement independent of that other agreement.  A decision by the Arbitral tribunal that such other agreement is non-existent, invalid or ineffective shall not entail ipso jure the non-existence, invalidity or ineffectiveness of the arbitration clause.

2.                 A plea by a respondent that the arbitral