New proposals to reform the Arbitration Act 1996 were published on Thursday by the Law Commission in an attempt to make the Act “as effective and responsive as possible, following recent reforms by competing jurisdictions”.
The new proposals include measures to improve the efficiency of cases, give further protections to arbitrators, grant extra provisions to the courts to support cases, and refine the process for challenging an arbitrator and their decisions.
In other areas, including provisions on confidentiality and impartiality, the Commission proposes no changes, on the grounds that the law is already effective and proportionate.
“While [the Arbitration Act 1996] continues to function well, over 25 years later, some parts of the Act may benefit from being updated and refined,” said Professor Sarah Green, the Law Commissioner for Commercial and Common Law, adding that the proposals “are designed to ensure that arbitration law is efficient, effective and responsive to modern developments. By making further improvements, we can help the UK to consolidate its status as a global centre for international dispute resolution.”
Law Society of England and Wales president I. Stephanie Boyce said:
“The Arbitration Act 1996 created a sound and robust framework for arbitration proceedings in England, Wales and Northern Ireland.
It enabled the growth and standing of our jurisdiction as an international destination for arbitration. However, the world is not standing still and it is important to review and update the provisions of the Act some 25 years after it was adopted.
We share the Law Commission’s objective of improving the Act and keeping this jurisdiction at the forefront of international dispute resolution. We will review the Commission’s proposals with great interest.”
Craig Tevendale, partner and head of international arbitration at Herbert Smith Freehills, said:
“On an initial view, the consultation paper proposes some very welcome changes, but the approach is based upon fine-tuning rather than root and branch reform.
Notably, the Commission has not proposed to codify the law of confidentiality or to change the approach under Section 69 of the Act (appeals on a point of law). However, there appears to be some innovative rethinking of Section 44 of the Act on interim relief.”
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