Protection of Third Parties Right Under the Ethioipan Arbtration Law
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Date
2022-09
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Addis Ababa University,
Abstract
The traditional attitude ascribing the task of dispute resolution to ordinary courts of law is greatly
challenged in modern society. It has now become part of the public policy of many states
provide the means of settling disputes by alternative dispute resolution mechanisms (hereinafter
referred to as ADR), both in court and outside of the courts. Among ADR mechanism, arbitration
is one mechanism in which the parties can solve their disputes out of the court room. Currently,
as commercial transactions become more complex worldwide, certain procedural problems in
arbitration are becoming more common. One of the most troubling issues in this area of law
concerns participation of third parties (through joinder, intervention or opposition to setting aside
of arbitral awards) into arbitration proceedings. In fact, if all parties agreed, the problem will be
somehow resolved. Otherwise, when parties disagree and third parties object participation, the
issue will be difficult. The new Ethiopian arbitration rules (Proclamation number 1237/2021)
tried to cover the right of third parties but it is not fully covered. Regarding the practice, the
courts and arbitration tribunals are found to be different in interpretation of the new
proclamation. Sometimes, they extend arbitration to third parties through litigation provisions,
sometimes they become hesitant. The understandings of Practitioners and academicians who
have exposure in arbitration are also divergent on the interpretation of Article 40 of Proclamation
number 1237/2021. Some are proponents, some are opponents and some are in the middle way in
relation to participation of third parties in arbitrations.
So, the problem is obvious. But, transactions comprise multiparty and multi contracts in which
all parties will not be signatory of the same arbitration agreement are going in numbers.
Generally, in Ethiopia, since multiparty arbitration proceedings would enhance the scope,
efficiency, certainty and effectiveness of arbitration system, rules and procedures that allow the
intervention and joinder of indispensible third parties in bilateral arbitration arrangement, as well
as mechanism of challenging the award by interested third parties need to be regulated expressly
and effectively. The practices also need to be developed.
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Keywords
Arbitration, flexibility, binding, third party, arbitral award, protection and Ethiopia