First, we should understand that both processes (litigation and arbitration) are similar in that third parties impose decisions on disputants by court judgments or arbitral awards. A major difference is that litigations are publicly conducted while arbitrations are private and confidential processes.

The arbitration agreement, signed by both parties in a contract, sets forth the limits of authority they are granting the arbitrator while presiding over their disputes. The arbitrator cannot act beyond this authority, however, if the parties agree, the authority may be expanded as they deem necessary.

Introduction Arbitration and Mediation, 2 of the many methods available to users of Alternative Dispute Resolution (ADR), are fast becoming the preferred method of resolving business disputes around the world. Courts now reduce workload by referring commercial disputes to ADR centres for resolution, and huge successes are being recorded. The Lagos Multidoor Courthouse (LMDC) is…