ARTICLE
19 September 2024

How Can I Employ Mediation In Settlement Of My Business Disputes

SL
Scott's Legal

Contributor

Mediation Is One Alternative Way Of Resolving Disputes That Does Not Involve Litigation. Mediation Makes Use Of A Neutral Third Party Who Acts As A Mediator.
Nigeria Litigation, Mediation & Arbitration

What Is Mediation?

Mediation Is One Alternative Way Of Resolving Disputes That Does Not Involve Litigation. Mediation
Makes Use Of A Neutral Third Party Who Acts As A Mediator. Here, The Resolution Process Is
Actually Done By The Parties, The Mediator Merely Acting As A Facilitator.

Are There Any Laws Governing Mediation In Nigeria?

Unlike Arbitration And Conciliation Which Has The ACA, There Is No Federal Law On Mediation In
Nigeria. However, We Have A Number Of State Laws, Particularly In Lagos As Well As Provisions
Embedded In The High Court Rules Of Various States Impliedly Bordering On Mediation.
Thus, We Have The Lagos State Multi-Door Court Law And Practice Directions As Well As Citizens
Mediation Centre Law.
Additionally, The Lagos HC Civil Procedure Rules As Well As Those Of Other States Provide That All
Lawyers Are Mandated To Inform Their Clients Of The Alternatives To Litigation Before Approaching
The Court. One Of These Is Mediation.

Types Of Mediation In Nigeria

Voluntary Mediation
Court-Annexed Mediation. There Are Instances Where The Court May Foist Mediation On Parties.
Here, Judges In Some Instances May Refer A Matter To The Various Mediation Channels Such As
The LMDC, LCA Or The Citizens Mediation Centre And Parties Are To Honour The Referral Or Risk
Being Held In Contempt Of Court.

How Can I Ensure My Business Disputes Are Settled Through Mediation?

To Do This, You Have To Insert A Mediation Clause In Your Business Contracts. In Other Words,
When Transacting With Your Business Partners, Ensure That The Terms Of Agreement Entered Into
Includes A Mediation Clause. Where This Is Provided, Parties Can Ordinarily Meditate Their
Business Disputes.
You Can Also Appoint Institutions To Mediate. The LMDC, Lagos Court Of Arbitration, Citizens
Mediation Centre Are Few Examples Of Leading Mediation Institutions In Lagos That Can
Effectively Mediate Your Disputes.

What If My Business Partner(S) Fail To Honour The Mediation Clause?

Due To The Voluntariness Of The Process, A Party To A Mediation May Withdraw And Refuse To Go
On With The Mediation.
Thus, Unlike Arbitration That's Entirely Legally Binding Mediation Is Quite Party-Centric And The
Parties Usually Hold The Final Say. Nevertheless, Mediation Is Generally A Reliable Dispute
Resolution Method And The Pros That Come With It Make It An Assuring Mode Of Dispute
Resolution.

References

1. Https://Www.Google.Com/Url?Sa=T&Source=Web&Rct=J&Url=Https://Legalpediaonline.Com/Mediation-
As-A-Tool-For-Resolving-Commercial-Disputes/Amp/&Ved=2ahUKEwjn6enEu8n9AhXKTaQEHcV-
CT4QFnoECA8QBQ&Usg=AOvVaw3ry0qmvBTuy5MOIQb_NkF1 Accessed On March 7 2023
2. Https://Mediate.Com/The-Growth-Of-Mediation-In-Nigeria/ Accessed On March 7 2023

Originally published 25 July 2023

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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