LUSAKA, Zambia – 4th June, 2023 – Financial Insight Zambia hosted Episode 9 of Fiz show, where Mutinta M. Lunda interacted with Paulman Chungu, Co-Managing Partner of Ranchhod | Chungu Advocates, to discuss issues pertaining to different forms of alternative dispute resolutions such as, arbitration and their importance.
Speaking during FIZ Show held in Lusaka on 27th April 2023, Mr. Chungu, said that, arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the “arbitrators”, “arbiters” or “arbitral tribunal”), by whose decision (the “award”) they agree to be bound.
According to Mr. Chungu, if parties in a contract want their dispute to be resolved outside the court, they must agree and put a clause in a contract, stating that, ‘where dispute arise in the operations, such disputes must be resolved by way of arbitration’. Resolving disputes through Arbitration saves time and money while providing a confidential and efficient process for all parties involved.
Arbitration is a private justice. This means that, parties agrees to settle their disputes in arbitration process instead of public litigation. Parties are free to identify the seat for arbitration. If they fail to do so, the seat is implied from an express choice of law governing the procedure. For instance, if the arbitration agreement states that the dispute is settled in accordance with South African law, the seat is considered to be in South Africa.
“With arbitration, “Whatever Happens in Vegas, Stays in Vegas”, the law provides that whatever discussed during the process of arbitration must not be discussed outside. Parties themselves have the right to choose expert mediator who then helps them to resolve the dispute. The decision given by the mediator is final, binding and must be recognised by law provided for under Arbitration Act, Cap 40 of the laws of Zambia. Suffice to mention that, when parties choose to go arbitration route, the outcomes is enforceable and cannot be appealed. Arbitration is a recommendable way of resolving dispute especially in companies”. Mr. Chungu said.
With regards to other forms of alternative dispute resolution such as mediation process, the decision given by the mediator is not considered to be final, on the basis that the mediator does not provide binding decision, only helps to bring disputing parties together by using his/her skills and advisethem on the best way possible to resolve their dispute. Where parties fail to agree on a solution, mediation fails and they can go through litigation process”. Mr. Chungu added.
Mr. Chungu also said, any person can become an arbitrator if they wish. There is no law which provides that only lawyers can be arbitrators. Lawyers may have an advantage of becoming arbitrators because of their legal dispute trainings they undergo before becoming lawyers. Otherwise, arbitration trainings are open to every professions, anyone can go through regular trainings offered by Zambia Chartered Institute of Arbitrations. The institute, offers different kinds of techniques for avowing, managing and resolving disputes outside the courts. Person is considered an arbitrator after such trainings.
The duty to choose an arbitrator is on the contracting parties. They can choose an expert of their choice. However, there is an arbitration process of selecting an arbitrator. Parties can also stipulate a criterial of choosing an arbitrator in a contract. For instance, parties may put a clause stating that, ‘where dispute arise, such dispute will be resolve through arbitration with an arbitrator who is a qualified lawyer with more than 6 years in practice’.
According to what the law provides, arbitrators have ethical codes of conducts, which ensures that fairness is always excised. Where parties are not satisfied with the decision delivered by an arbitrator and believes in some impartiality with the judgement, that decision can be challenged.
In summing up Mr. Chungu stated that, Zambian courts are congested and to save time, people should resolve their dispute through arbitration. It is the best form of alternative dispute resolutions which creates a win, win situation. However, Parties must always consider including an arbitration Clause in a Contract to protect their business interests and Streamline Conflict Resolution.