The legal system is a combination of Roman-Dutch and English Common Law. The dispute resolution options available for aggrieved Parties are the following:
- Litigation
- Arbitration
- Court annexed mediation
Litigation in Lesotho
The court structure in Lesotho is a three-tier system as follows:
- Court of Appeal;
- High Court; and
- Subordinate courts
The High Court has unlimited original jurisdiction over civil and criminal matters, as well as appellate jurisdiction from subordinate courts. The High Court also acts in a number of capacities, including as a Commercial Court, a Constitutional Court, an Electoral Court, a Land Tribunal, and a Revenue Appeals Tribunal
Subordinate courts, comprising resident magistrate’s courts, judicial commissioner’s courts, and central and local courts, administer statute laws, while chiefs administer customary and tribal laws.
Arbitration in Lesotho
Arbitrations in Lesotho are conducted in accordance with the Arbitration Act of 1980. This is not based on the UNCITRAL Model Law.
Lesotho accepts binding international arbitration of investment disputes as they have entered into bilateral investment agreements that provide for international arbitration. The Courts of Lesotho’s accept and enforce foreign arbitral awards.
ICSID Convention and New York Convention
Lesotho is a member of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention) and the New York Convention of 1958 on the Recognition and Enforcement of Foreign Arbitral Awards.
Mediation in Lesotho
Court annexed mediation is the process whereby the rules of court require the parties to a dispute, after the initiation of litigation, participate in the mediation process before continuing with the litigation process. Therefore, mediation has become mandatory before the litigation process is continued with.