On 17 July 2024, King Charles III revealed the new Labour government’s immediate agenda in the first King’s Speech since Keir Starmer became prime minister. The arbitration community will welcome the spotlight on the upcoming Arbitration Bill.

This significant reform is based on the Law Commission’s 2022 review, and aims to strengthen the UK’s standing as a global leader in both domestic and international arbitration.

Sherina Petit (Head of International Arbitration), Alejandro I Garcia (Partner) and Daniel Wilmot (Partner) and Pardis Jahanfar (Paralegal) explain why this new Bill will benefit the arbitration community.

What will the Arbitration Bill change?

The proposed Bill addresses critical aspects of arbitration law:

• Determining applicable law. The Bill clarifies that arbitration agreements be governed by the law of the seat unless parties specifically agree otherwise.
• Codifying the duty of arbitrator impartiality. The Bill codifies a duty on arbitrators to disclose any conditions that might cause reasonable doubts regarding their impartiality, ensuring greater transparency and trust in the arbitration process.
• Summary awards. Arbitrators will have the authority to issue summary awards on claims that lack substantial prospects of success, enhancing the efficiency of the arbitration process.
• Support for emergency arbitration orders. Courts will be authorised to issue orders in support of emergency arbitrators, ensuring immediate relief in urgent arbitration scenarios.
• Refined challenge procedures. The Bill seeks to update the procedures for disputing the jurisdiction of arbitral tribunals, promoting a fair and efficient resolution mechanism.

In due course and as the Bill progresses through Parliament, we look forward to publishing a more in-depth analysis of its anticipated impact in support of more efficient dispute resolution. We will also consider the Bill’s impact on the London arbitration market and how it compares to other jurisdictions.

Comment

Sherina Petit says: “I’m pleased to see the Arbitration Bill laid out as a priority for this government. Legal services contribute so much to the UK economy and arbitration is a major tool for resolving disputes for companies who want to do so in a private manner.”