WHETHER AN ARBITRAL PANEL CAN DETERMINE LEGAL QUESTIONS SUCH AS DEFAMATION?

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WHETHER AN ARBITRAL PANEL CAN DETERMINE LEGAL QUESTIONS SUCH AS DEFAMATION?  

by Branham Chima. 

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✓ DEFINITION(S): 

Arbitral panel: also known as an arbitration tribunal or arbitration commission, refers to a group of impartial adjudicators who are selected by the parties involved in a dispute to resolve their conflicts through arbitration. 

Legal question: A legal question refers to an issue or problem that arises and has legal implications. It involves matters related to the application, interpretation, or clarification of laws, regulations, or legal principles. These questions may involve determining the rights and obligations of parties, the legality of certain actions, or the interpretation of legal provisions. 


✓ ANSWER: 

A claim for defamation arising from libel is considered a common law claim, meaning it falls under the jurisdiction of the legal system. In order to effectively address such a claim, it must be brought before a court of law. It is important to note that an arbitrator or an arbitral panel does not possess the authority to address legal questions. Therefore, before a dispute can be referred to arbitration, it must first be determined if it is arbitrable. It is crucial to understand that an arbitrator cannot provide relief for damages resulting from the resolution of the legal question, such as determining whether a specific letter is detrimental to the reputation of the respondent. 

In respect, my Lord Ogunwumiju JSC held in UBA v Triedent Consulting Ltd. (SC.CV/405/2013, July 07, 2023) thus: ‘My Lords, a claim for defamation arising out of libel is a claim at common law. It remains a question of law. A claim for defamation can only be effectively determined by a Court of law. An arbitrator or an arbitral panel is not imbued with the powers to answer legal questions. Thus before a dispute can be referred to arbitration, same must first and foremost be seen to be arbitrable. An arbitrator cannot grant a relief for damages arising from the determination of the legal question as to: “whether the letter dated 19th August, 2008 is injurious to the reputation of the Respondent.”  

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