ENFORCEMENT OF INTERNATIONAL ARBITRAL AWARDS: THE ISSUE OF LEX MERCATORIA

Abstract

Lex Mercatoria is the Latin expression for a body of trading principles used by merchants throughout Europe in the medieval. Literally, it means “|merchant lawâ€. It evolved as a system of custom and practice, which was enforced through a system of merchant courts along the main trade routes. It emphasized contractual freedom, alienability of property, while shunning legal technicalities and deciding cases ex aequo et bono. The methodology adopted is doctrinal. The research found out that there is serious controversy over the existence, the credibility and even the validity of lex mercatoria. Some scholars are of the opinion that Lex Mercatoria is a stateless law and as such do not exist or, where it exists, should not be applied by arbitrators. Another group of scholars believe that stateless law is not the same with lawless law, and as such, Lex Mercatoria awards are enforceable in Nigeria. The research concluded that since there is no recent reported case on this, it is expected that the Courts in Nigeria on the basis of Article 42(1) of ICSID Convention and Section 47(1) of the Arbitration and Conciliation Act, will enforce lex mercatoria awards. The research recommended that the Courts should honour the parties’ choice of extra-legal standards since lex mercatoria is not binding in honour but in law. The research concluded that the grounds on which the Court can refuse the enforcement of awards rendered based on lex mercatoria is on the issues of misconduct, lack of fair hearing, public policy and error of law.