Commercial Arbitration and Accomodation of Third Parties in Ethiopia
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Date
2018-05
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Addis Ababa University
Abstract
Currently, as commercial transactions become more complex, certain procedural problems
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 award) into an arbitration. 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.
Third parties under the Ethiopian arbitration rules are uncovered. Regarding the practice,
the courts and Arbitration tribunals are found to be different in interpretation of the law.
Sometimes, they extend arbitration to third parties through litigation provisions, sometimes
they become hesitant. The understandings of Practitioners and Academicians who have
exposure in commercial arbitration are also divergent. Some are proponents, some are
opponents and some are in the middle way in relation to participation of third parties in
commercial arbitrations.
So, the problem is obvious. But, transactions comprises multiparty and multi contracts in
which parties will not be signatory of the same arbitration agreement are becoming in
growth. Generally, in Ethiopia, since multiparty arbitration proceedings would enhance the
scope, efficiency, certainty and effectiveness of commercial 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
Commercial Arbitration,Accomodation