MR Momoh Kadiri is a Nigerian Lawyer practicing in London. He specializes in arbitration. In this interview, he spoke on what Nigeria can benefit from arbitration and why parties prefer London for arbitration and other related issues. Excerpts.

By Dayo Benson

HOW can Nigeria benefit from arbitration as a nation?

Nigeria has made some progress in recent years in ADR, part of which is arbitration. However, with recent marked growth in foreign direct investment, I think that protection and sustenance of foreign investment is fundamental to Nigeria’s growth.

Also, Nigeria’s quest for strategic partnership with other states is significantly dependent on her future stability, predictability, and protection of foreign investment. Arbitration is the preferred dispute adjudication method in protecting foreign investment and treaty obligations and, Nigeria stands to meaningfully benefit if the investment climate is conducive  and receptive to investors who are direly needed locally for their expertise, capital, and industrial revolution, which are all critical to Nigeria’s development.

In what ways can parties in  Nigeria benefit from London arbitration ?
There many benefits that parties in Nigeria can derive from arbitration in general, and London in particular based on the many advantages that English law affords to parties to contractual relationships .

 There have been complains about high cost of arbitration. How can it be controlled ?
The issue of cost is a very important factor not only in arbitration but also litigation. Indeed, some people argue that arbitration is more expansive than litigation. My view is that such an answer is not as simplistic as other may have you believe. The issue of cost is relative and an objective test would indicate that parties have different needs/ and/or desires when a dispute arises. For some, what is important cannot be quantifiable in pecuniary or monetary estimation. Confidentiality of the arbitral process is very important to many parties; which is often priceless. For others, time and speed is of the essence. Having said that, you see that cost is more than just costs in the arbitration itself, it goes beyond legal fees and expenses of the arbitral tribunal.

Now turning to the question on costs, by which I suspect means costs in the arbitral reference, costs generally depend on type of arbitration; whether it is institutional or ad hoc arbitration.  For example in ICC arbitrations, cost is based on percentage of, and amount in dispute; LCIA and LMAA are time based respectively.  Cost can generally be controlled by having:
-Documents only arbitration;
-Counsel can be avoided or done in-house through use of solicitors
-Seeking cost limitation under section 65 of the English Arbitration Act 1996
-Avoiding excessive and/or unnecessary disclosure or fishing expedition.
-Last, but not least, parties can devise ways to take control to reduce cost under the English Arbitration Act, and tailor their arbitration to their circumstances. No tailor-jacket- approach. There are solutions to cost mitigation, as there are horses for causes.

So what makes  London arbitration thick?
The City of London is a legal centre, not just a financial and commercial one. Therefore, London is not only a global financial and commercial centre; it is a global legal centre too. Also, more than half of the world’s leading law firms have chosen London as their headquarters, which means the city has the highest concentration of judicial expertise anywhere in the world.
Therefore, London is a legal hub with a global appeal. Very recently, over 80 percent of parties to arbitration at the London Court of International Arbitration (LCIA) were of non-UK origin.
 

Why do you think it is preferable?
Arbitration is part of a whole raft of alternative dispute resolution mechanisms, parts of which is also mediation. There are many key reasons why London is a destination of choice for dispute resolution, some which stand out to me are:

First and foremost- the English legal system; built with rule of law at its foundation. The English common law attracts many parties to contracts because it is based on the principle of freedom of contract; it is there to give effects to their intentions. The development and advancement in English commercial law make it attractive for resolution of international commercial disputes.

Specialist expertise

Second, the volume, variety, and quality of specialist expertise available in London. There is a tremendous pool of experienced arbitrators, consulting engineers, accountants, Quantity Surveyors,   and others available in London.

Third, the UK’s long standing experience in dealing with complex and multi jurisdictional disputed and international parties.

Fourth, the English courts are very supportive of arbitration and do not seek to interfere, and will only intervene, when the need arises.

Fifth, London offers speed and expediency; with a timely award produced, compared to other jurisdictions. Most foreign parties doing business in Nigeria would find London arbitration neutral and attractive in the light of the above stated benefits.

You are organizing some arbitration training conference in London. What are the details, speakers, and what are the benefits for participating?

It will hold between 16th  to 18th July 2014 at the Hilton in Canary Wharf, London. It is our second conference titled: ‘International Arbitration Conference for West Africa’. The speakers expected include the Mr Mohammed Adoke, SAN, Honorable Attorney-General. Confirmed speakers include Nicholas Chambers QC, Stephen Ruttle QC, Harry Matovu QC, all of Brick Court Chambers, London. Ms Mahnaz Malik, Arshard Ghaffar, both London- based commercial barristers. Mr Olumide Sofowora, SAN and Mr Wale Atake, from Nigeria, are also expected. The benefits for participants are enormous; we shall be taking a practical look at topical issues in international arbitration from a London, international and comparative basis respectively. A large contingent of the Nigerian judiciary is also expected at the event. Certificates of attendance and CLE points will be awarded at the  event.