Online Dispute Resolution in Nigeria: Trends and Legal Prospects

CONTRIBUTED BY PAUL NWAOKOLO

INTRODUCTION

In light of technological development that has led to the creation of a global village, Online Dispute Resolution (ODR) has emerged as a viable alternative to litigation as a way of resolving disputes. By bringing all of the well-known Alternative Dispute Resolution (ADR) processes, such as Arbitration, Negotiation, and Mediation, from the typical offline environment to a borderless world of the Internet. Online Dispute Resolution enhances amicable conflict settlement.

The method of providing legal services globally has been changed, given various interpretations, and subsequently reinvented in various ways as a result of the advent of sustaining technologies. Document automation, online legal advice, document analysis, collaboration tools, virtual hearings, cloud storage, systems for tracking time and sharing files, online dispute resolution, and legal databases are just a few of these advancements. These technologies have increased access to justice, the legal research process, and other areas of the effectiveness of legal services.

This disquisition considers the prospects of Online Dispute Resolution (ODR) procedures and the benefits of ODR technologies to contemporary legal practice in Nigeria.

ONLINE DISPUTE RESOLUTION

Online Dispute Resolution (ODR) technology consists of various Legal-Tech software that virtually facilitates the resolution of disputes between parties. The ODR movement began in 1996, when David Johnson[1] hosted his first conference shortly after his article ‘Law and Borders’ appeared in the Stanford Law Review[2]. ODR has since influenced judicial systems all over the world. It has undergone numerous improvements, and there are high expectations that it will undergo even more significant ones. Over 80 ODR systems are currently functioning worldwide, according to a recent report from ODR Europe[3].

There have been worries about how to use technology to address the major difficulties in the justice sector and facilitate law practice more generally, because the core purpose of legal technologies is to improve service delivery and resolve problems inherent in manual processes. Numerous ODR service providers offer online mediation, negotiation, and arbitration.

ODR TECHNIQUES

E-mediation, E-negotiation, E-arbitration, or a mix of the three are the most commonly used ODR techniques. At the most fundamental level, lawyers who arbitrate cases now have access to digital tools to settle conflicts amongst their clients. These tools could be web-based platforms for video conferencing or other collaborative tasks. This streamlines and expedites the mediation process, especially for parties who are geographically separated.

  1. E-MEDIATION

E-mediation is specifically being developed as a fully automated ODR system based on computer-prompted data collection at a more advanced stage. It is capable of offering tailored, customized mediation without the aid of a third party in response to the inputs of the pertinent parties to a dispute.

  1. E-NEGOTIATION

E-negotiation on the other hand uses a web interface to shape discussions into a respectful and helpful negotiation. During the process, software tools that limit the amount of free text, encourage agreement proposals, establish deadlines, and shape the tone of interactions are utilized.

  1. E-ARBITRATION

Parties have more flexibility with E-arbitration than with traditional arbitration hearings. Even if it takes a while, the parties find it to be a lot more convenient. Selecting the platform for arbitration is the first step in employing electronic arbitration. The parties choose a platform, register on that site through their attorneys, and proceed with the matter there.

EXAMPLE OF ODR TECHNOLOGY

The online dispute resolution platform Modria, which is situated in the US, is an excellent example of ODR technology. The Modria Software has been able to resolve some 400 million disputes between online buyers and sellers on eBay, which is more than all the lawsuits filed in the entire U.S. court system[4]. Because of this, fewer cases are filed in court every year. Modria Software uses artificial intelligence to take customer complaints, carry out automated analysis, and then render a decision. At this point, Ninety Percent (90%) of the issues reported on Modria have been resolved. Human mediators are brought in to resolve disputes if they cannot be resolved through Modria. The widespread use of these algorithms may, in the near future, aid in the resolution of more challenging cases[5].

APPLICATION OF ODR TECHNOLOGY IN NIGERIA

Undoubtedly, the application of ODR technologies in Nigerian legal practice can offer a lot of benefits. In Nigeria, there are over 25 million legal issues each year. The Hague Institute for Innovation of Law has further established that only roughly Forty Percent (40%) of these legal issues are successfully resolved[6].

ODR is a potential solution to these problems, as developments in the global legal-tech industry have revealed. ODR provides a multiplier effect on the legal profession in Nigeria, having an impact on attorneys, the judicial system, and the general public. This is so because ODR is not just for resolving disputes. Additionally, it makes it easier to implement dispute resolution procedures like dispute containment, dispute avoidance, and legal health promotion.

Legal tech companies in Nigeria can build up plans akin to those of Modria to help attorneys who serve as arbitrators and mediators fulfil their duties as effectively as possible. Alongside putting up these technologies, attorneys can use their skills to incorporate some of the most fundamental conflict resolution principles. By doing this, numerous backlog of cases at the normal courts can be cleared.

BENEFITS OF ODR

  1. One of the most notable advantages of ODR is that parties do not necessarily have to travel for proceedings when using mechanisms like online mediation or arbitration. For example, if the parties have established liability and their dispute is only about the amount of a monetary settlement, the fully automated cyber-mediation or arbitration websites discussed above can be sufficient and effective to resolve the dispute. All a party needs to do is move their hands on an internet-enabled device. The benefit of letting each party decide when to answer or participate; the ease of allowing each party to consider their views and positions before responding or participating.
  2. Additionally, the majority of these ODR service providers are open 24/7. Any delays brought on by waiting to get the proper forms can be avoided if interested parties simply visit the provider’s website and complete certain electronic forms. Additionally, parties can quickly get data and other information regarding their cases in real-time thanks to the internet. When compared to fax, email is also more effective and efficient because it allows for the simultaneous sending of documents from several parties, which saves time and money.
  3. The ODR system is very adaptable. The parties concerned have complete control over when they are available to talk about their issues. Additionally, parties are able to decide whether they want to use immediate or delayed modes of communication.

ODR offers both synchronous and asynchronous ways to resolve conflicts, making this conceivable. Video calls and Zoom meetings are examples of synchronous means.

Alternatively, parties may decide to settle their disputes asynchronously through email correspondence.

  1. ODR is also fairly informal. It does not strictly follow the rules. The ways in which parties can present their evidence are incredibly versatile and inventive. Therefore, this arrangement facilitates consent between the parties.

By offering a prompt and impartial resolution of legal issues and easing the workload of judges, this ODR technology will significantly improve Nigeria’s judicial system. Nigeria is already well-positioned for the upcoming justice sector change thanks to a number of factors.

Internet usage growth and the expansion of arbitration and mediation among lawyers are two prominent factors. Intriguingly, the Nigerian Communications Commission reported that as of July 2019, there were around 122 million active internet users, i.e half of the population[7]. Given that more individuals in Nigeria have access to the internet and may simply choose to resolve their conflicts online, this demonstrates the potential for rapid adoption of online dispute resolution in the country.

It is noteworthy that in 2021, the Edo State Judiciary trained no fewer than 100 persons in Online Dispute Resolution (ODR) to improve the system for commercial dispute resolution and contract enforcement in the state. This undoubtedly qualifies as a step in a new direction to enhance the justice system in Nigeria and should be emulated by other states till nationwide applicability is attained.

CONCLUSION

Reiterating the need for the application of Online Dispute Resolution Mechanisms in Nigeria is not a fruitless endeavour, because there are numerous internet-based conflict resolution systems that are already in use in the public and business sectors of many other countries, including Canada and Germany. It’s time to start having these considerations about justice changes in Nigeria. The future is here, as remarked by the well-known science fiction author William Gibson. Simply put, it’s not dispersed equally yet.

Key terms: Online Dispute Resolution, Arbitration, ODR, ADR

  1. David Johnson was the Chairman of Counsel Connect and Co-Director of the Cyberspace Law Institute (2006) in the United States.
  2. Ethan K. Dispute Resolution Without Borders: Some Implications for the Emergence of Law in Cyberspace (First Monday, 2006). Available at https://firstmonday.org/ojs/index.php/fm/article/view/1313/1233#:~:text=Starting%20in%201999%2C%20ODR%20began,itself%20from%20its%20offline%20relative. Accessed January 6, 2023.
  3. ODR Europe, ODR platforms and Apps. Available at http://www.odreurope.com/odr-services/odrplatforms-apps> Accessed January 6, 2023.
  4. Feranmi Adeoye; The Practical Application of Online Dispute Resolution (ODR) Technology to Modern Law Practice in Nigeria vis-à-vis The Nigerian Legal System: A LegalTech Analysis 1. p. 3. Available at https://www.researchgate.net/publication/356903525_The_Practical_Application_of_Online_Dispute_Resolution_ODR_Technology_to_Modern_Law_Practice_in_Nigeria_vis-a-vis_The_Nigerian_Legal_System_A_LegalTech_Analysis_1. Accessed January 6, 2023.

  5. Andres Oppenheimer; The Robots are Coming! (2019, Vintage Books) p 178-179.
  6. Hague Institute for Innovation in Law, Justice Needs and Satisfaction in Nigeria (2018) Available from < https://www.hiil.org/wp-content/uploads/2018/07/HiiL-Nigeria-JNS-report-web.pdf> Accessed January 6, 2023.
  7. Nigerian Communications Commission, NCC Hinges Nigeria’s 122 million Internet users’ protection on effective governance. Available at <https://www.ncc.gov.ng/stakeholder/media-public/news-headlines/614-ncc-hinges-nigeria-s-122-million-internet-users-protection-on-effective-governance> Accessed January 6, 2023.

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