A Comparative Analysis Of The Ethiopian Legal Framework For Consolidation Of Commercial Arbitration In Multiparty Cases

Abstract

Most modern commercial cases or disputes such as class actions, insurance claims, large construction projects, corporate cases, investment and regulatory matters always involve more than just two parties (a plaintiff and a defendant) and many more than one or two issues. In contrast, though commercial arbitration has come of age, the resolution of multiparty disputes continues to present problems for both national and international systems similarly. In order to solve the complexities that arise in related disputes, several nations and arbitral institutions have introduced consolidation of commercial arbitration. This research studies the Ethiopian arbitration legislation and arbitral institutions’ regulation on consolidation of commercial arbitral proceedings in comparison with other jurisdictions’ national laws and arbitration institutions’ approaches. Specifically objective of this thesis, to assess the what, why, and how of consolidation of commercial arbitration proceedings, to evaluate the experiences of some other jurisdictions and other established arbitration intuitions concerning the regulation of consolidation of arbitration, to examine if the Ethiopia’s legal and arbitration institutions’ regulatory framework on consolidation of commercial arbitration proceedings conform to best international standard or practice of an ideal arbitration institution and to make proposal for reform. Methodologically, the study shall use the doctrinal and analytical method(s) as they allow a methodical discourse of doctrines, regulations, rules, and notions related to the theme of consolidation of multiparty disputes in commercial arbitration. The research finds that while the Ethiopian Government has lately ratified commercial arbitration law which contains numerous amendments that bring the country’s arbitral framework in line with international best practices, the law has notably failed to include rules which regulate the complex sphere of multiparty arbitrations. Besides, the country’s arbitration institutions do not provide for clear provisions on consolidation in their rules. Therefore, in this researcher’s opinion, the relevant authorities in Ethiopia must act to bring the country’s legal framework of consolidation of commercial arbitration into line with internationally recognized standards and practices. This can, among other things, contribute to enhancing the quality of the arbitral process and the development of effective commercial arbitrations which is one of the country’s trade policy goals. Ethiopia newly adopted arbitration law there is no clear provision which regulates the joinder and consolidation of arbitrations in arbitration. So, Ethiopia repeats a legal loophole under civil and civil procedure code concerning multiparty arbitration under the new legislation again, because there is no provision which allows consolidation under the revised arbitration law. Also new Ethiopia arbitration proclamation doesn’t including the provision of appointment of arbitrators.