NIGERIA Law and Practice Contributed by: Abubakar Anafi, Larry Nkwor, Justice Uka-Ofor and Ayomide Abiodun, G. Elias
12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country ADR is viewed positively and highly promoted in Nigeria and has been integrated by law into Nigeria’s dispute resolution system. The Rules of Professional Conduct for Legal Practitioners, 2023, mandates lawyers to inform their clients of the ADR mechanisms available to them before resorting to litigation. Further, in many states in Nigeria, pre-trial or case management confer- ences are mandatory before trial. One of the objectives of such conferences is to promote the amicable resolution of the dispute. The referral of a case to an ADR body for alterna- tive resolution, where possible, is usually listed as an agenda item of such pre-trial or case man- agement conferences. Also, courts in Nigeria have ADR centres to which disputes are referred for amicable resolution. The most popular ADR methods in Nigeria are negotiation, mediation and arbitration. 12.2 ADR Within the Legal System The Nigerian legal system promotes ADR as a dispute resolution mechanism. Lawyers are required to inform their clients about the option of ADR mechanisms before resorting to litiga- tion. Most rules of the courts require parties to attempt amicable settlement before filing a law- suit, and failure to comply with this requirement might lead to the striking out of the suit. In addi- tion, most court rules include pre-trial confer- ences, with an agenda to refer cases to ADR for settlement. Under the law, where there is an arbitration agreement between the parties and one party institutes an action in court, the court has the
• travel and other expenses of parties and witnesses to the extent that the judge deter- mines to be reasonable. Costs are awarded at the discretion of the court, which must be exercised judiciously. Although a successful party is generally entitled to be indemnified for the expenses necessarily incurred and compensated for its time and effort in coming to court, it cannot lay any claim to costs unless the court has made an order to that effect. In addition, the courts must not award costs in a bid to punish the unsuccessful litigant who sought redress in court. Orders as to costs may be the subject of appeals to an appellate court. 11.2 Factors Considered When Awarding Costs A court in awarding costs often considers facts such as the out-of-pocket expenses of the successful party, the duration of the case, the number of appearances by the parties and their counsel, the number of witnesses called by the successful party, unnecessary delays in pro- ceedings, the cost of legal representation, and the value and purchasing power of the currency of the award at the time of the award, among others. Courts tend in practice to award costs at below market rates. 11.3 Interest Awarded on Costs There is no legal requirement for the award of interest on costs. Costs become immediately payable when ordered.
1049 CHAMBERS.COM
Powered by FlippingBook