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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
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- 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.
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Article 2
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- 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 |
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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) |
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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.
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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
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