ADR mechanism: Panacea for economic growth, development

As Nigeria’s justice system grapples with congested court dockets and long delays in the final determination of cases, efforts are being made to shift to an Alternative Dispute Resolution (ADR) mechanism, which is now embodied in the job that the Lagos Multi-Door Courthouse (LMDC) does. YETUNDE AYOBAMI OJO reports that the 56 per cent success rate recorded by the LMDC in the last 22 years of its existence shows that ADR can be embraced to settle cases faster and usher in economic development and growth.

The Lagos Multi-Door Courthouse (LMDC) was conceived and established in 2002 to free the embarrassingly congested court dockets, which were replete with needless cases that could otherwise have been amicably resolved were other options available, and also enhance the administration of justice in the state.

Twenty-two years on, stakeholders believe the Alternative Dispute Resolution (ADR) mechanism, which the LMDC was set to achieve is on course. With a total of 25,481 cases as of August 2024 and a remarkable 56 per cent success rate, as well as the recovery of a total sum of N55,151,793,860.52 and $56,292,277.51, which would otherwise have been unavailable to the commercial sector for investment, LMDC has every reason to gloat about its achievements.

By that, LMDC has undoubtedly contributed to increased resources in Nigeria, and particularly Lagos economy, even as it helps to engender trust in the judicial system by attracting foreign direct investments. This means that people can invest in Nigeria knowing that upon any business dispute, there is an alternative way of fixing things fast.

LMDC has, over the years, evolved into a full-fledged ADR training institution providing ADR services and consultancy services to a wide range of clientele who cut across various professional sectors.

Pleased with its successes, stakeholders at the first yearly Multi-Door Courthouses and Alternative Dispute Resolution Summit, themed, “ADR As a Panacea for Speedy Recovery of Commercial Disputes and Enhanced Access to Justice.” held at Victoria Island, Lagos, extolled its usage as a mechanism for a speedy resolution of cases to usher in economic development, as well as calling on stakeholders to fix the noticeable challenges hampering its growth.

The event had in attendance Lagos State governor, Babajide Sanwo-Olu; the Chief Justice of Nigeria (CJN), Justice Kudirat Kekere-Ekun; the Attorney-General of the Federation (AGF), Prince Lateef Fagbemi (SAN); the Lagos State Chief Judge, Kazeem Alogba; Lagos Attorney-General, Mr Lawal Pedro (SAN).

Others include Edo, Ogun, and Bayelsa states Chief Judges, as well as other sitting judges from across the country. Not left out were Senior Advocates of Nigeria (SANs), magistrates and lawyers as well as representatives from other professions.

Governor Sanwo-Olu noted that LMDC led significant initiatives that have ensured timely and effective dispute resolutions, as well as fund recoveries. According to him, the state government recovered N55.15 billion and $56.29 million through such settlements.

The governor, who spoke on the topic, “ADR As a Panacea for Speedy Resolution of Commercial Disputes and Enhanced Access To Justice,” underscored the initiative’s importance. Represented by the Secretary to the State Government (SSG), Mrs Abimbola Salu-Hundeyin, the governor stated that these efforts have reduced court cases, improved the administration of justice, and made legal services more accessible to Lagosians.

“The LMDC now stands as a beacon of hope for both individuals and businesses, offering a practical, inclusive, and more efficient alternative to traditional litigation. ADR plays a critical role in our commercial transactions and social and economic activities. It also drives the sustainable development of our state, which is Nigeria’s economic and commercial hub and the third largest economy in West Africa,” he said.

The governor reiterated the government’s commitment to supporting ADR as a tool for fostering economic growth, saying, “An efficient dispute resolution framework builds confidence in local and international investors. It enhances the ease of doing business, attracts foreign direct investment, and drives economic prosperity.”

Also speaking at the event, the Chief Justice of Nigeria (CJN), Justice Kudirat Kekere-Ekun held the view that LMDC’s success has demonstrated that ADR is not merely an alternative but a fundamental component of a modern justice system.

The CJN stated that the establishment of LMDC’s connected ADR centre in Africa has been instrumental in transforming the dispute resolution landscape in Nigeria, providing businesses and individuals with accessible, effective, and equitable means to resolve disputes outside the traditional court system.

“In today’s fast-paced global economy, where commerce moves at an unprecedented pace, businesses and individuals alike seek speedy, cost-effective, and efficient resolution of their disputes. Traditional court proceedings, though vital for the administration of justice, often face the challenge of backlogs, prolonged timelines, and high costs.

“This is particularly detrimental to commercial entities, where protracted legal battles can stifle business operations and erode the confidence of investors. ADR through mechanisms such as mediation, arbitration, and conciliation provide an easy solution that enables parties to resolve their disputes quickly, flexibly, and confidentially, while preserving vital business relationships,” she said.

The CJN, therefore, called on all stakeholders to continue to support the growth and development of ADR in Nigeria. Her words: “The responsibility to promote ADR lies with all of us, from the judiciary to the legal profession and from business leaders to government agencies.

“Together, we can ensure that ADR becomes not just an alternative, but a preferred means of resolving disputes in Nigeria, enhancing access to justice for all. We must particularly prioritise the integration of technology and the mandatory referral of cases to ADR centres like LMDC to ensure that the justice system operates more efficiently.”

She commended the Lagos State Judiciary under the leadership of Justice Kazeem Alogba and the LMDC for their steadfast dedication to promoting innovative dispute resolution mechanisms aimed at improving the efficiency and accessibility of justice.

Also, the Attorney-General of the Federation and Minister of Justice, Prince Lateef Fagbemi (SAN), called for continued support from stakeholders to work towards developing and refining ADR procedures to ensure that they are fair, efficient, and enforceable. He said they are not oblivious to the challenges associated with the operationalisation of ADR, despite the benefits derivable therefrom.

According to him, these challenges stem from the reluctance of parties and legal practitioners alike to embrace ADR as a viable alternative to litigation, as well as concerns over the enforceability of settlement agreements arising from ADR proceedings which may still end up in court.

“The question, then, is, why not just approach the court ab initio? The preference or affinity for adversarial litigation is still prevalent even in commercial cases. The efforts by some state judiciaries to accord accelerated determination of these cases through fast-track procedures or designation of commercial courts have not yielded desired outcomes,” he pointed out.

The AGF charged the judiciary, government institutions in charge of trade and investments, the Nigerian Bar Association (NBA), business associations, and other stakeholders to step up the tempo of sensitisation on the benefits of ADR.

“For ADR to be attractive, we must continue to work towards developing and refining ADR procedures to ensure that they are fair, efficient, and enforceable. This summit offers a platform for the judiciary across the states to engage in peer review and exchange mechanisms with regard to the operation of the various Multi-Door courthouses,” he suggested.

Fagbemi, however, bemoaned the existing congestion of cases in higher courts. He stated that 243,253 cases are pending before the superior courts, excluding the Supreme Court.

His words: “The foregoing situation was aptly and authoritatively captured during the opening address delivered by the learned Chief Justice of Nigeria at the 3rd Annual National Conference on Judges Performance, wherein it was disclosed that in the first quarter of 2024, a total of 243,253 cases are pending before our superior courts excluding the Supreme Court. One of the ways identified by His Lordship for addressing this unsustainable backlog is to encourage the use of ADR methods like mediation.

“It is comforting for the future of ADR in Nigeria that many states have established their structure of multi-door courthouses, starting with the LMDC, which commenced operation in 2002, and the FCT, which followed in 2003. The National Industrial Court of Nigeria in 2015 introduced the multi-door concept for the resolution of labour disputes. This is a positive development given the critical place the labour force occupies as a driver of the economy. Incessant or protracted determination of trade disputes adversely inhibits commercial activities.”

Justice Alogba, in his opening address, called for continuous collaboration with the private sector and stakeholders to ensure that Lagos remains at the forefront of dispute resolution advancements. “By enhancing ADR mechanisms and integrating technology, we will ensure justice is timely, fair, and accessible for all,” he said.

Earlier, the Chairman of the LMDC Governing Council, Justice Jumoke Pedro, remarked that the LMDC was established as Africa’s first court-connected Alternative Dispute Resolution Centre, and it remains dedicated to fostering the growth and advancement of Alternative Dispute Resolution (ADR) mechanisms.

She said LMDC is set to further entrench itself as the foremost ADR institution in Africa by improving the ease of doing business and promoting an enabling environment for foreign direct investment through the provision of alternative mechanisms to supplement litigation in the resolution of disputes.

“This has greatly contributed to increased resources in Nigeria and particularly Lagos State’s economy and engendered trust in the judicial system for the attraction of foreign direct investment.

“This is in keeping with the Lagos State Government’s THEMES+ development agenda for a greater Lagos, particularly in providing security, good governance; education, technology, social inclusion, gender equality and youth development, making Lagos a 21st-century state,” she declared.