Overview

The Arbitration Bill [HL] amends the Arbitration Act 1996 to improve the efficiency and fairness of arbitration proceedings in the UK. Key changes include clarifying the law applicable to arbitration agreements, strengthening arbitrator impartiality rules, and enhancing court powers to manage and resolve disputes arising from arbitration.

Description

Applicable Law:

The bill clarifies the law governing arbitration agreements. If the parties haven't explicitly chosen a law, the law of the place where the arbitration takes place ("seat of arbitration") will apply. Exceptions exist for arbitration agreements stemming from international treaties or foreign legislation.

Arbitrator Impartiality:

The bill introduces a mandatory disclosure requirement for arbitrators. They must disclose any circumstances that could reasonably raise doubts about their impartiality, both before and during proceedings.

Arbitrator Immunity:

Changes are made to the rules around removing or replacing arbitrators. It limits when arbitrators can be ordered to pay costs and clarifies rules around resignation and entitlement to fees.

Jurisdiction of Tribunal and Court Powers:

The bill clarifies when courts can intervene in arbitration cases, particularly regarding challenges to the tribunal's jurisdiction. It also grants courts the power to award costs even if the tribunal lacks substantive jurisdiction. New powers are given to the tribunal to make summary awards in suitable cases, aiming for speedier resolutions.

Emergency Arbitrators:

The bill introduces the concept of "emergency arbitrators," who can issue interim orders in urgent situations. This is to deal with immediate needs during the arbitral process

Challenging Awards:

The bill revises the process for challenging arbitration awards, specifying the remedies available to the court (confirm, vary, remit, set aside, or declare void) and establishing procedures for such challenges, including rules on raising objections and evidence.

Appeals:

The bill amends existing legislation concerning appeals from High Court decisions relating to arbitration cases.

Miscellaneous Amendments:

Minor amendments are made to streamline court procedures and remove outdated provisions related to domestic arbitration agreements.

Government Spending

The bill doesn't directly specify government spending figures. The impact on government spending will likely be indirect, potentially through increased efficiency in dispute resolution, reducing the burden on the courts, and affecting court costs.

Groups Affected

The bill will affect various groups including:

• Businesses: The changes will impact how commercial disputes are handled through arbitration.
• Arbitrators: The new disclosure requirements and immunity provisions will directly affect their practice.
• Lawyers: Changes to procedures and court powers will alter how legal professionals handle arbitration-related cases.
• Courts: The bill will affect their workload and how they manage arbitration-related cases.

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