Joinder Of Parties Under Nigeria's Arbitration And Mediation Act 2023

• Published date: 02 April 2024
• Subject Matter: Litigation, Mediation & Arbitration, Arbitration & Dispute Resolution
• Law Firm: SimmonsCooper Partners
• Author: Olayinka Alao, Daniel Adegbamigbe and Monsurat Lamina

Understanding Party Joinder in Arbitration Proceedings

The concept of 'joinder of parties' in a legal context refers to the addition of one or more individuals or entities as co-plaintiffs or co-defendants in a pending legal, arbitral or administrative process. A joinder request may either be initiated by the party seeking to be joined or any of the existing parties to the action. The main purpose behind including additional parties is to ensure a thorough and final resolution of disputes by bringing all relevant and necessary parties before the court or arbitral panel.

Previously, the applicable principles governing joinder of parties in an arbitral proceeding were not expressly defined, as the Arbitration and Conciliation Act,1 contained no explicit provisions on the subject. However, the enactment of the Arbitration and Mediation Act 2023 ("AMA") has introduced a new framework enabling the joinder of additional parties in arbitration proceedings subject to certain legal considerations.

In this article, we will explore the legal principles for joinder of parties in arbitration as prescribed in the AMA, delving into the implications, nuances, and potential ramifications of these principles.

Who can join an Arbitration Under the New Arbitration and Mediation Act 2023?

Prior to the enactment of the AMA, only parties to an arbitration agreement can sue and be sued on any dispute arising therefrom. Put differently, a non-party to an arbitration agreement seeking to join or be joined as a party to an arbitration proceeding would be deemed a stranger and ultimately meddlesome interloper. This emphasizes arbitration's nature as a process based on mutual agreement.

However, the AMA expands this framework, thereby improving procedural effectiveness, and fostering greater inclusivity in the arbitration process. Specifically, Section 40(1) of the AMA provides as follows:

The arbitral tribunal shall have the power to allow an additional party to be joined to the arbitration, provided that, prima facie, the additional party is bound by the arbitration agreement giving rise to the arbitration.

With the above provision, arbitral tribunals now possess the authority to exercise their discretion in adding an additional party in the arbitration, provided there is prima facie2 evidence that the party is bound by the arbitration agreement. This implies that any of the original parties to the arbitration agreement may apply to the arbitral tribunal to join an additional party...