ZAMBIA Law and Practice Contributed by: Mweshi Banda-Mutuna, Musenge Leah Nkonde and Lumbanya Judah Mulenga, Mweshi Banda & Associates Legal Practitioners
Mweshi Banda & Associates Legal Practitioners First Floor, Block Four, West Wing Stand No 20849 Corporate Park, Alick Nkhata Road Mass Media, Lusaka Zambia Tel: +260 211251552
Email: info@mbalegalpractitioners.com Web: www.mbalegalpractitioners.com
1. Dispute Resolution Methods 1.1 Main Dispute Resolution Methods The main commercial dispute resolution mechanism used in Zambia is litigation, with alternative dispute resolution (ADR) mechanisms of arbitration being an alternative method; mediation and negotiation are also used in certain instances. 1.2 Choice of Dispute Resolution Method Litigation Litigation in the Zambian courts is the default and most widely used mechanism for the resolution of domestic commercial disputes, particularly among parties that have not expressly contracted for arbitra- tion. The Commercial Division of the High Court is designed as a fast-track court specifically for busi- ness and trade disputes, offers-structured case man- agement, and targets resolution – ideally within six to 12 months from the date of commencement, though normally matters take up to two years to conclude. Arbitration Arbitration is the favoured alternative to litigation for commercial disputes and its use is increasing, par- ticularly in relation to: • mining disputes pursuant to the Minerals Regula- tions Commission Act, 2024; • the enforcement of rights and obligations con- tained in power purchase agreements entered into with the Zambia Electricity Supply Corporation; • construction disputes;
• conveyancing disputes; • contract disputes more generally; and • public procurement disputes. Court-Annexed Mediation
Owing to the non-binding nature of mediation in Zambia, parties sometimes commence litigation with a view to benefiting from court-annexed media- tion introduced by Statutory Instrument (SI) No 71 of 1997, and most recently reformed by the High Court (Amendment) Rules, SI No 72 of 2018. This operates as a mandatory referral system for disputes utilised by judges at the scheduling conference stage, for appro- priate cases, although parties can ask for a referral. The resulting Consent Mediation Settlement Order is binding and not subject to appeal. Negotiation Negotiation is widely employed as the first step in resolving a wide range of commercial disputes in Zambia. It is used if disputes arise from a sale, lease or supplier disputes. Conciliation and Adjudication Conciliation and adjudication are increasingly used methods in the settlement of construction disputes. 1.3 Key Dispute Resolution Trends The Zambian dispute resolution landscape contin- ues to undergo significant institutional and legislative transformation. The High Court (Amendment) Rules, SI No 58 of 2020 (the “Amended Rules”) reinforced the requirement for parties to attempt amicable set-
599 CHAMBERS.COM
Powered by FlippingBook