The commission, which published its final recommendations and draft legislation this week following an 18-month review, said strengthened immunity would support the arbitrator to make robust and impartial decisions without the fear of being sued.
Other recommendations include codifying the law on arbitrators’ duty to disclose conflicts of interest while retaining current duties on impartiality. The commission suggested arbitrators be able to summarily dismiss legal claims that lack merit. It recommended clarifying the power of the courts to support arbitration proceedings and emergency arbitrators, as well as improvements to the framework for challenging jurisdiction.
In terms of disputes between parties over the governing law that should apply, the commission recommended a default rule in favour of the law of the seat. The commission said this would ‘have the virtues of simplicity and certainty’ and ‘would see more arbitration agreements governed by the law of England and Wales, when those arbitrations are also seated here’.
Overall, however, the commission concluded the central tenets of the Act continue to function well. It considered whether to introduce provisions on confidentiality, but decided there was no need for reform as the law is working well.
Law commissioner Professor Sarah Green said: ‘With these improvements, we hope that the Act provides a modern and effective legislative framework for many years to come, enabling arbitration to continue playing a significant role in the UK economy.’
Nick Vineall KC, chair of the Bar Council, expressed support for the proposals and welcomed the commission’s ‘characteristically careful and balanced review’.
Vineall said: ‘It is extremely important that the government finds parliamentary time for the short Bill which the Law Commission proposes.
‘London has a well-deserved reputation as the foremost centre for international arbitration. It is important to legislate to make the modest changes to the arbitration regime which the Law Commission has recommended in order to maintain and enhance that reputation.’
Justice minister Lord Bellamy said the government would respond shortly to the recommendations.
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