UGANDA MANAGEMENT INSTITUTE

MBA, CLASS – BUSINESS LEGAL FRAMEWORK

1. ALTERNATIVE DISPUTE RESOLUTION

Alternative dispute resolution
This is a method of resolving disputes
This includes mediation and arbitration
Advantages of ADR include quick access to justice, reduces case backlog, gives
opportunities to all parties to engage in the process of resolving methods, and
clears case load to advocates/lawyers.
Relevant Legislations

1. Constitution of Uganda (1995) AS AMENDED)

2. The Arbitration and conciliation Act Cap 4, Laws of Uganda
3. The civil procedure Rules, Laws of Uganda.
4. The Judicature Mediation Rules 2013, Laws of Uganda.
5. Case laws.
6. The Judicature Act, Cap 13 Laws of Uganda.
7. The Magistrate Courts Act Cap 16, Laws of Uganda.
ALTERNATIVE DISPUTE RESOLUTION (ADR)
Alternative Dispute Resolution is a structured negotiation process where by the
parties to a dispute themselves negotiate their own settlement with the assistance
of an independent intermediary who is a neutral person/party with trained
techniques of Alternative Dispute Resolution.
The forms/Mechanisms of alternative Dispute Resolution include the following,
Mediation, Arbitration, Conciliation, Negotiation, Mini-Trials.

A. MEDIATION
This is a conflict Resolution Process where the parties to a dispute are assisted by a
neutral person known as a mediator to resolve their dispute through negotiations.
The parties in the dispute get involved in reaching a good decision in respect to the
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circumstances. Resolution of the dispute is reached only if the parties reach an
agreement that is acceptable to them.
The mediation mechanism of alternative dispute resolution is governed by the
mediations rules 2013, laws of Uganda and other relevant laws.

This mediation mechanism of ADR involves steps or process/stages and include

the following:

1. Introduction of the subject matter of the conflict

2. Identifying the areas of disagreement (issues).
3. Developing possible options, resolutions of the problems.
4. Working and analyzing the issues, interests and options towards resolving
the problems.
5. Achieving a settlement or ending of the mediation.
6. Mediation Report and agreement is drawn up.
B. ARBITRATION
This is a mechanism of alternative dispute resolution, arbitration it is a process by
which the parties to a dispute submit their differences to the Judgment of an
impartial person or group of persons appointed by Mutual Consent. The Neutral
Person giving the Judgment / Decision of Arbitration is known as the Arbitrator.
The parties appearing before the Arbitrator give the facts and relevant evidence of
their case but do not participate in determining the outcome of the dispute, whereas
in the mediation mechanism final Agreement is a win-win decision.
In the Arbitration there is a winner and a loser, the parties usually participate in the
choice of an Arbitrator or the Arbitrators to handle their matter / dispute.
The Arbitrator’s decision it is called an award and it is enforceable by law as if it is
a court judgment. The Arbitration agreement is drawn.
NOTE: The Arbitration mechanism is governed by law, the Arbitration and
conciliation Act, Cap 4, laws of Uganda.

NOTE: The choice of Arbitrator, the agreement to Arbitrate, the decision of

Arbitrator, enforcing.

C. CONCILIATION
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Conciliation is a mechanism of alternative dispute resolution, in this process an
independent third party or neutral person assists the parties to settle their
differences but May, if necessary, delivers his / her opinion to the merits of the
dispute.
The governing law for conciliation is the Arbitration and conciliation Act,
Cap 4, laws of Uganda and other relevant laws.

D. NEGOTIATION
This is where parties who have a dispute discuss it with a view to finding a
mutually acceptable solution. For example it might be a family dispute, dispute
between individuals or organisations.
NOTE: The public service (Negotiating, Consultative and Dispute settlement
Machinery Act, 2008) Law of Uganda.

E. MINI-TRIAL
This is a mechanism of alternative dispute resolution, this kind of method is
mainly used by commercial corporations e.g. Banks, in this method a neutral third
party is invited to conduct a hearing in which the executives of the corporation
may be involved with a view to testing the merits of the case before a decision is
finally made to go to trial. (Civil Litigation in court of Law).
F. Adjudication, Mechanism of Alternative Dispute Resolution.
This method Resolves Dispute and it is mainly used by engineering practioners
e.g. International Federation of consulting engineers. The parties agree on settling
their disputes using a particular adjudicator, who gives the judgment after
evaluating the evidence and facts, it is a quick way of resolution matters.
For example – In Plinth Technical works limited Vs. Hoima municipal
council, the matter was referred for adjudication, one of the mechanisms of
alternative dispute resolution.

NOTE: The constitution of Uganda 1995 Article 126(2) STATES THAT, In

the Adjudication of cases of both civil and criminal nature the court shall
subject to the law apply the following principles:-

a) Justice shall be done to all irrespective of their economic status.

b) Justice shall not be delayed.

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c) Adequate compensation shall be awarded to victims of wrongs.
d) Reconciliation between parties shall be promoted, and
e) Substantive justice shall be administered without undue regard to
technicalities.
In view of the above constitutional provision the mechanisms of alternative dispute
resolutions are designed in order to promote justice and ensure the quick way of
resolving it is upon that basis the civil procedure Rules, Laws of Uganda
ORDER 12(2)(1) provide for Alternative dispute resolution mechanisms.
CASES ON ADR
A JANTA PHARMACY LIMITED vs. ATTORNEY GENERAL 2011 – The
parties had a clause in the contract incase of any problem dispute settlement would
be by Arbitration. Thus the matter was referred to Arbitration method for settling.
NAMBALE ENTERPRISES LIMITED Vs. Busitema University – The dispute
was referred to Arbitration.

PLINTH TECHNICAL WORKS LIMITED Vs. HOIMA MUNICIPAL

LOCAL GOVERNMENT COUNCIL – The matter was referred to adjudication.
INSTITUTIONAL FRAMEWORK
- Courts of Judicature Uganda.
- CENTER OF ARBITRATION AND DISPUTE RESOLUTION (CADER)
UGANDA.
- LEGAL AID Clinics and Law Firms.
- International court of arbitration, international chamber of commerce France
Paris.
- International center for dispute resolution – NEWYORK AMERICA.
RELEVANCY OF ALTERNATIVE DISPUTE RESOLUTION
1. Alternative Dispute Resolutions Processes / Mechanisms can be set up quickly
as the parties May Desire and this helps in resolving the Matter.
2. Alternative Dispute Processes/mechanisms are shorter than court litigation and
time saving for busy people and organisations, companies.
3. Alternative Dispute Resolution Mechanisms are confidential hence it helps to
avoid unwanted publicity of the matters in dispute.
4. Unlike any other process, parties remain in full control of any settlement
agreed. Issues like corruption, negligence cannot distort the process and the
parties can maintain their rights if no settlement are reached.
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5. The parties in dispute have a choice to select a person / party to handle the
ADR Activity.
6. If a settlement in ADR Activity is reached, it can be enforced like any other
court order.
7. It helps in saving money and time for the parties in dispute.
8. ADR helps courts of law to reduce on case backlog in the court system.
9. It promotes justice and harmony in society.

BY: KAMYA UTHMAN