The Chief Justice of Sierra Leone, His Lordship Justice Desmond Babatunde Edwards, said before the end of June, the country’s new arbitration Bill 2022 will become the new arbitration law.
Justice Edwards was speaking as a special guest at the 6th International Chamber of Commerce Africa Conference on Arbitration on the theme, "African Arbitration: Consolidation and Transformation."
The country’s present law of arbitration was borrowed from the Arbitration Ordinance of 1927, as enshrined in Cap 25 of the Laws of Sierra Leone 1960. It constitutes the first and only statutory enactment of arbitration in the nation, enacted by the British Colonial Administration, and came into force on the 16th of December 1927.
Against this backdrop, the Chief Justice said the English Law had long departed from that Ordinance with the promulgation of the English Arbitration Act, 1996. Despite that, Sierra Leone continues with it.
As Justice Edwards said, "They gave us a legacy we are unwilling to abandon." In its long title, it reads: "This ordinance may be cited as the Arbitration Ordinance and shall apply to the colony and the protectorate." So, its application is only and solely in Sierra Leone, never mind what lawyers would wish, "he emphasized.
He went on, "This is in contrast with other arbitration laws like the UNCITRAL MODEL LAW 1985, as amended in 2006, the English Arbitration Act 1996, the German ZPO, the Swiss Private International Law, and many statutes, all of which has been an international application," the Chief Justice informed.
The Chief Justice said disputes are an inevitable occurrence of life, and that international arbitration remains the most important and widely used dispute resolution mechanism of choice for cross-border disputes.
He said, "Guinea, Liberia, The Gambia, and Sierra Leone all do have arbitration laws," pointing out, "in the case of Guinea, they have The Ohada Uniform Arbitration Act 1999, as amended, The Gambia has The Alternative Dispute Resolution Act, Chapter 6 of 2005, as amended by Act No. 6 of 2006. Liberia has the Liberian Commercial Code of 2010, Title 7: Chapter 7 of the Liberian Code of Laws Revised Commercial Code, and Commercial Arbitration.
Stressing, "these are relatively new and modern arbitration laws which may not represent the best as they may need improvements here and there but present good scenarios for making these countries reasonably attractive for arbitration."
Edwards reiterated that in Sierra Leone, Cap 25 of the Laws of Sierra Leone 1960, was the oldest in the sub-region; hence, the need for reform in that Act. The good news is that the new arbitration bill is expected to be introduced in Parliament as the 2022 Arbitration Act.
Robert Volterra, Founding Partner of Volterra Fietta in Canada, said there is a need to encourage local lawyers to develop their expertise in arbitration. Moreover, arbitration has now been viewed as a fundamental tool for enabling business and investment in the continent, and measures are now being put in place to update arbitration laws, especially in the enforcement of foreign awards.
He highlighted key developments in the various regions of Africa and outlined gains made thus far in the region.
Chikwendu Madumere, Managing Partner and Chartered Arbitrator, speaks on Damages in International Arbitration: Valuation Approaches. For him, one issue that has drawn significant attention from the international community in recent years is the assessment of damages in the context of international disputes.
The Honorable Mark Kantor, Arbitrator, and Mediator at Georgetown University Law Center, in the United States of America, emphasized how wide the gap is in terms of assessing loss between claimants and respondents and what are the common methods adopted by tribunals in assessing damages.
This new Arbitration Bill in Sierra Leone, apart from the best practice provisions which cover issues of stay of proceedings, limited court intervention, powers about the constitution of the tribunal, determination of recoverable costs, and other challenges, seeks to address issues like:
Third-party funding with restrictions on property
Emergency Arbitrator Proceedings
Expedited hearings
Establishment of Sierra Leone’s Arbitration Centre, where the composition would include renowned arbitrators from around the Continent.
Court intervention is limited.
It incorporates the New York Convention, of which Sierra Leone is a member, incorporating its reservations.
The New Concept of "Arbitration Proceedings Rules" deals with when, how, and when applications must be filed
Enforcement of Peremptory Orders
Investor-state Arbitration Enforcement
All of these are bound to make the country attractive as a place for doing business and cause direct foreign investment.
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