The Arbitration Act 1996 is being freshened up

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Theresa Mohammed is simply a spouse and Laura Lintott is simply a elder subordinate astatine Trowers & Hamlins LLP

The Arbitration Act 1996 betterment is successful afloat stride and connected its way. On 30 November 2021, the Law Commission announced that it volition statesman the process of reviewing the Arbitration Act 1996 – a portion of authorities that has served america good for much than 25 years but whitethorn request a spot of freshening up.

When the Arbitration Act came successful it was a enactment of caller air, arsenic it brought unneurotic disjointed pieces of authorities and lawsuit law, and provided a coagulated ground for the UK to emergence and radiance successful the planetary arbitration landscape. The English Law is presently 1 of the astir fashionable choices of instrumentality successful planetary arbitration disputes and the purpose of the betterment is to support this position.

The instrumentality ages too

One mightiness inquire what brought astir the request for reform, considering the Arbitration Act has stood the trial of clip and provided a coagulated crushed for much than a 4th of a century.

“To support the UK’s presumption connected the planetary arbitration stage, it needs to enactment up of the alternate quality solution game”

The reply is simple: the Law Commission wants to guarantee we don’t remainder connected the laurels of our forefront position. The information is, similar everything, the instrumentality ages arsenic well. Modernisation, the COVID-19 pandemic and the expanding competitiveness of different jurisdictions mean that to support the UK’s presumption connected the planetary arbitration stage, it needs to enactment up of the alternate quality solution game.

While the Law Commission’s inaugural is inactive successful its infancy, the areas that it is presently considering see those listed below.

The powerfulness to summarily disregard unmeritorious claims oregon defences successful arbitration proceedings. One could reason that this powerfulness could beryllium viewed arsenic beneficial for arbitral tribunals (a sheet of unbiased adjudicators, which is convened and sits to resoluteness a quality by mode of arbitration). However, we indispensable not hide the request for a balanced attack to guarantee a party’s close to beryllium heard is not dismissed. The courts’ powers exercisable successful enactment of arbitration proceedings. Section 44 of the Arbitration Act has been taxable to immoderate disapproval astir the uncertainty surrounding the courts’ powers against 3rd parties. The process for challenging a jurisdiction award. Currently, it is the tribunal and not the arbitration tribunal that has the past connection successful narration to jurisdiction. In reality, this could pb to a claimant facing a plethora of undesirable applications successful the arbitration arsenic good arsenic successful court. The availability of appeals connected points of law. The existent scope of conception 69 of the Arbitration Act has been a constituent of treatment for rather immoderate time. On the 1 hand, compared with different jurisdictions, a narrower scope would beryllium the mode guardant to amusement a much arbitration-friendly approach. However, determination is absorption to this view, which cheers for the section’s scope to beryllium widened. The instrumentality concerning confidentiality and privateness successful arbitration proceedings. While confidentiality is 1 of the cardinal characteristics of arbitration, the Arbitration Act itself is soundless connected this point; it is the communal instrumentality that implies confidentiality. The betterment could pb to the request for confidentiality to beryllium enshrined successful legislation. Electronic work of documents, physics arbitration awards and virtual hearings. This is simply a proposition that would drawback up with the needs of the 21st century. It would besides acceptable good into the existent emerging inclination of greenish drafting – peculiarly with a absorption connected the Campaign for Greener Arbitrations successful the planetary context.

The Arbitration Act is the existent backbone and propeller down the UK, and London successful particular, with it being specified a fashionable destination for planetary arbitrations. Considering that, for example, the International Federation of Consulting Engineers’ suite of standard-form operation contracts sets retired arbitration arsenic the default last quality solution process, it is understandable that the operation manufacture has reserved its beforehand seats to ticker the reform’s advancement with anticipation.