International Commercial Arbitration at Lesotho
Here’s an overview of International Commercial Arbitration in Lesotho:
1. Legal Framework
Lesotho’s arbitration regime is governed primarily by the Arbitration Act, 1974 (Cap 17:04).
The Act governs both domestic and international arbitration but is considered somewhat outdated compared to modern UNCITRAL-based laws.
Lesotho is not a party to the New York Convention (1958), which affects the enforcement of foreign arbitral awards.
Lesotho has made some moves toward modernizing its arbitration laws, but no comprehensive UNCITRAL Model Law adoption has been enacted yet.
2. Arbitral Institutions
Lesotho has no dedicated arbitration institutions or arbitration centers.
Arbitration, especially international commercial arbitration involving Lesotho parties, usually takes place under foreign institutions such as:
International Chamber of Commerce (ICC)
London Court of International Arbitration (LCIA)
Ad hoc arbitration under UNCITRAL Rules
Most international contracts involving Lesotho parties designate arbitration in foreign neutral venues.
3. Enforcement of Arbitral Awards
Enforcement of foreign arbitral awards in Lesotho is complex due to non-membership in the New York Convention.
Local courts may enforce foreign awards on the basis of common law principles or reciprocal enforcement treaties, but this is uncertain and can be procedurally difficult.
Domestic arbitral awards can be enforced through court orders as per the Arbitration Act.
4. Judicial Attitude and Intervention
Lesotho courts generally recognize arbitration agreements but judicial support can be inconsistent.
Courts can assist in arbitrator appointment and grant interim measures.
However, lack of updated legislation and limited judicial experience in arbitration may cause delays or challenges.
5. Practical Advice
For international contracts involving Lesotho:
Choose a neutral seat of arbitration in a jurisdiction with modern arbitration laws and New York Convention membership (e.g., London, Singapore).
Use internationally recognized arbitration institutions.
Draft clear arbitration clauses with detailed procedural rules to avoid local legal uncertainty.
Parties should be cautious about relying solely on Lesotho’s local arbitration regime or enforcement mechanisms.
Summary
| Aspect | Details |
|---|---|
| Arbitration Law | Arbitration Act, 1974 |
| New York Convention Status | Not a party |
| Local Arbitration Centers | None |
| Enforcement of Foreign Awards | Difficult, no New York Convention membership |
| Preferred Arbitration Venue | Foreign neutral jurisdictions |
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