Legal Updates

A. New Sections and Concepts

New s.6A

Introduces a default rule: if no express choice of law governs the arbitration agreement, the law of the seat applies. A contract-wide governing law clause does not suffice. Reflected in s.2(2)(za) and s.83.

New s.23A

Requires arbitrators and proposed arbitrators to disclose any relevant circumstances that might reasonably give rise to doubts as to their impartiality. A mandatory provision (Schedule 1).

New s.39A

Allows tribunals to issue summary awards where a party has no real prospect of success, provided both parties have a fair opportunity to be heard.

New s.41A

Enables emergency arbitrators, where appointed under agreed rules, to issue peremptory orders enforceable under s.42. “Emergency arbitrator” and “peremptory order” added to s.82(1) and s.83.

B. Amendments to Key Existing Provisions

s.24(5A)

Court may only order arbitrator to pay costs if bad faith is shown. See cross-reference in s.29(1).

s.25

Replaces fee liability regime. Court may now decide on entitlement to or return of fees/expenses on application by any relevant party (new s.25(3)).

s.29(4–5)

Clarifies that an arbitrator is only liable upon resignation if doing so was unreasonable in all the circumstances, subject to agreements or court orders.

s.32

Removes the “good reason” requirement (s.32(2)(b)) and other hurdles (s.32(3)). New s.32(1A) inserted. Tightens court access after tribunal rulings on jurisdiction.

s.42

Expanded to include peremptory orders made by emergency arbitrators, not just the full tribunal.

s.44

Amended to: (1) include non-parties (s.44(1)); (2) require permission from tribunal/emergency arbitrator in non-urgent cases (new s.44(4)); (3) add procedural and appeal provisions (s.44(6A–7)).

s.45

Mirrors changes to s.32: removes need to prove lack of delay or agreement. New test for leave refers to either condition in s.45(2).

s.61

Tribunal powers no longer conditional on party agreement (s.61(1)). Can award costs even if tribunal lacked jurisdiction (new s.61(1A)). “Costs follow the event” is now a default rule, subject to party agreement (s.61(3)).

s.67

Reworded for clarity (s.67(1)(b)). Courts may declare awards ineffective (new s.67(3)). New subsections (3B–3D) limit new grounds at court stage unless applicant shows prior unawareness despite diligence.

s.70(3A–3B, 9)

Introduces a flexible “applicable date” rule for calculating time limits for applications/appeals, including corrections and additional awards. New s.70(9) inserted.

C. Repeals and Omissions

ss.85–88

Repeals provisions distinguishing domestic arbitration, aligning fully with international standards.

Schedules 3 & 4

Removes outdated references (e.g. to court appeal routes) consistent with the above reforms.