My previous article published on 26 March 2025 made reference to the Arbitration Act 2025 (‘the Act’) receiving Royal Assent on 24 February 2025. The Act is now in force.
The main reforms mentioned in my earlier Article introducing a number of key reforms to the Arbitration Act 1996 have been adopted.
Consequently, the main reforms introduced by the Act now in force include:
- The governing law applicable to arbitration agreements shall now be the law of the seat of the arbitration unless the parties have agreed otherwise. This replaces the Supreme Court’s stepped Enka v Chubb analysis for determining the governing law, which was criticized by some.
- Creating a statutory duty of disclosure requiring arbitrators to disclose circumstances which would or might reasonably give rise to justifiable doubts as to their impartiality.
- The summary disposal of a reference by the arbitrators if a party’s case has no real prospect of success, akin to the Court’s summary judgment powers.
- Arbitrator’s immunity is strengthened, such that there will be no liability for resignation unless unreasonably undertaken and no costs liability for an application for their removal unless the arbitrator has acted in bad faith.
- Amending the procedures for jurisdictional challenges pursuant to section 67 of the 1996 Arbitration Act by disallowing a full rehearing of a matter before the Courts (with the admission of new evidence and/or arguments) and a second bite at the cherry.
- Extending the powers of the court in support of arbitral proceedings (section 44 of the 1996 Arbitration Act), by permitting orders against third parties and providing emergency arbitrators with further powers by making their orders enforceable through the courts so as to encourage greater confidence in emergency arbitration procedures.
The changes introduced provide greater certainty, efficiency and support for arbitrations in England, Wales and Northern Ireland and are no doubt welcome news for legal practitioners and others in the maritime industry.