The proposed updates to the Act, 25 years after it was passed, include giving arbitrators powers to summarily dismiss claims, made by parties, that lack legal merit.
The process for challenging the jurisdiction of an arbitrator would be refined, so that challenges in the courts take place by way of an appeal rather than a full rehearing.
Increased protections for arbitrators include strengthened immunity in certain cases such as where the arbitrator resigns or where an arbitral party brings a court claim which impugns the arbitrator, and new provisions to support equality in arbitral appointments.
A provision requiring arbitrators to disclose any conflict of interest would be added so that such disclosure is fully codified in the Act, and the rules on emergency relief would be clarified.
However, the Commission thought the Act was functioning well overall.
Law Commissioner Professor Sarah Green said the Act ‘was a landmark piece of legislation which helped to propel London to its position as the foremost destination for international arbitration today.
‘By making further improvements, we can help the UK to consolidate its status as a global centre for international dispute resolution.’
Nick Storrs, partner at Taylor Wessing, said: ‘Issues such as summary proceedings and emergency relief in arbitration have been in debate now for some time and so ensuring there is a statutory framework which responds to these issues will be very welcome.
‘The potential for summary disposal of claims has long been a topic of debate. If the proposals are adopted it will be interesting to see how they are used in practice. I'm not sure they are necessary or desirable, but equally any mechanism for improving the efficiency of arbitration should be considered.’
I Stephanie Boyce, president of the Law Society, said the Act ‘enabled the growth and standing of our jurisdiction as an international destination for arbitration. However, the world is not standing still.’
Responses to the consultation paper, Review of the Arbitration Act 1996, are due by 15 December.
.tmb-mov69x69.jpg?sfvrsn=28793f10_1)
