Arbitration was one of the original ADR processes to offer cheaper and quicker dispute resolution (DR) than the courts. Over many years, legislation has developed (the Arbitration Act 1996 (Act) being the latest) to establish arbitration as a trusted, domestic DR process. At the same time, English law's strong reputation, combined with benefits such as confidentiality and specialist arbitrators, has made England and Wales (and particularly London) a destination for international DR.
Ensuring international parties continue to choose English law and an English/Welsh seat is partly what lies behind the Law Commission's recent decision to review arbitration. Some see no reason to change a successful process, but others agree it is time to review, for example, whether appeals on points of law should be available and procedural issues relating to e-service of documents, electronic awards and virtual hearings.
However, the radical changes of the last 25 years mean the review takes place against a very different backdrop to that of the 1990s. Technology is transforming DR processes. Gender/race inequality is recognised in the arbitration community but progress towards equality is slow. The consequences of Brexit and COVID-19 have created complex regulatory, trade and economic challenges. Climate change demands new ways of operating to reduce carbon emissions.
The Law Commission, which acknowledged these challenges as themes for its 14th Programme of reform, could find much to inform the broader aspects of its review process in the arbitration/DR community's wide-ranging initiatives. Examples include:
Whether, and to what extent, the goals behind these initiatives could/should be furthered by amending provisions in the Act is debatable. However, the review presents an opportunity for our world-class arbitration community to lead by example. How could the Act promote fairness, equality, transparency and access to justice as well as the legal and technical excellence, efficiency and value the international community has come to expect?
This article was published in Construction Law as the ADR Column on 2 March 2022. You can sign up to Construction Law newsletters here.