Commercial Arbitration And Accomodation Of Third Parties In Ethiopia

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Currently, as commercial transactions become more complex, certain procedural problemsrnare becoming more common. One of the most troubling issues in this area of law concernsrnparticipation of third parties (through joinder, intervention or opposition to setting aside ofrnarbitral award) into an arbitration. In fact, if all parties agreed, the problem will bernsomehow resolved. Otherwise, when parties disagree and third parties object participation,rnthe issue will be difficult.rnThird parties under the Ethiopian arbitration rules are uncovered. Regarding the practice,rnthe courts and Arbitration tribunals are found to be different in interpretation of the law.rnSometimes, they extend arbitration to third parties through litigation provisions, sometimesrnthey become hesitant. The understandings of Practitioners and Academicians who havernexposure in commercial arbitration are also divergent. Some are proponents, some arernopponents and some are in the middle way in relation to participation of third parties inrncommercial arbitrations.rnSo, the problem is obvious. But, transactions comprises multiparty and multi contracts inrnwhich parties will not be signatory of the same arbitration agreement are becoming inrngrowth. Generally, in Ethiopia, since multiparty arbitration proceedings would enhance thernscope, efficiency, certainty and effectiveness of commercial arbitration system, rules andrnprocedures that allow the intervention and joinder of indispensible third parties in bilateralrnarbitration arrangement, as well as mechanism of challenging the award by interested thirdrnparties need to be regulated expressly and effectively. The practices also need to berndeveloped.

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Commercial Arbitration And Accomodation Of Third Parties In Ethiopia

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