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

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