LEGAL PRINCIPLE: ARBITRATION LAW — Customary Arbitration — Binding Effect Requires Submission by Both Parties
PRINCIPLE STATEMENT
Where a body of men, be they Chiefs or otherwise, act as arbitrators over a dispute between two parties, their decision shall have a binding effect, if it is shown: (a) That both parties submitted to the arbitration.
RATIO DECIDENDI (SOURCE)
Per Onu, JSC, in Iheanacho & Ors v. Chigere & Ors (2004) NLC-1512000(SC) at p. 9; Paras C–D.
"Where a body of men, be they Chiefs or otherwise, act as arbitrators over a dispute between two parties, their decision shall have a binding effect, if it is shown: (a) That both parties submitted to the arbitration."
EXPLANATION / SCOPE
Customary arbitration is binding only if both parties submitted to it. The principle applies to customary law disputes. Voluntary submission is essential for binding effect. The rule ensures consent is the basis of arbitration. The court must find both parties agreed to submit. A decision without mutual submission is not binding.