The Arbitration Act 1996: a reflection at 25 years (Pt 3)

• Challenging an arbitration award under section 68 of the Arbitration Act 1996.
• The Law Commission’s indication that it will not be considering reform of section 68.
• A comparative approach relating to indemnity costs.

Arbitration is frequently preferred over litigation as a dispute resolution method for several reasons. One such reason is the perceived finality of arbitral awards. It is common for arbitration rules and agreements to provide that awards will be final and binding on the parties, with only limited circumstances in which an arbitral award can be challenged (see for example Art 29.2 of the London Court of International Arbitration (LCIA) Rules 2020).

Where the seat of the arbitration is England, Wales or Northern Ireland (assumed for the purposes of this article), the Arbitration Act 1996 (AA 1996) confirms, in s 58, that unless otherwise agreed by the parties, an award