Prospective

Applicable law

1Law applicable to arbitration agreement

(1)The

(2)After

“6ALaw applicable to arbitration agreement

(1)The law applicable to an arbitration agreement is—

(a)the law that the parties expressly agree applies to the arbitration agreement, or

(b)where no such agreement is made, the law of the seat of the arbitration in question.

(2)For the purposes of subsection (1), agreement between the parties that a particular law applies to an agreement of which the arbitration agreement forms a part does not constitute express agreement that that law also applies to the arbitration agreement.

(3)Subsection (1) does not apply to an arbitration agreement derived from a standing offer to submit disputes to arbitration where the offer is contained in—

(a)a treaty, or

(b)legislation of a country or territory outside the United Kingdom.

(4)In this section—

• “legislation” includes any provision of a legislative character;

• “treaty” includes any international agreement (and any protocol or annex to a treaty or international agreement).”

(3)In

“(za)section 6A (law applicable to arbitration agreement),”.

Prospective

The arbitral tribunal

2Impartiality: duty of disclosure

(1)The

(2)After

“23AImpartiality: duty of disclosure

(1)An individual who has been approached by a person in connection with the individual’s possible appointment as an arbitrator must, as soon as reasonably practical, disclose to the person any relevant circumstances of which the individual is, or becomes, aware.

(2)An arbitrator must, as soon as reasonably practical, disclose to the parties to the arbitral proceedings any relevant circumstances of which the arbitrator is, or becomes, aware.

(3)For the purposes of this section—

(a)“relevant circumstances”, in relation to an individual, are circumstances that might reasonably give rise to justifiable doubts as to the individual’s impartiality in relation to the proceedings, or potential proceedings, concerned, and

(b)an individual is to be treated as being aware of circumstances of which the individual ought reasonably to be aware.”

(3)In

• “section 23A (impartiality: duty of disclosure);”.

3Immunity of arbitrator: application for removal

(1)The

(2)In

“(5A)The court may not order the arbitrator to pay costs in proceedings under this section unless any act or omission of the arbitrator in connection with the proceedings is shown to have been in bad faith.”

(3)In “(and see section 24(5A) (immunity in respect of costs of proceedings for removal))”.

4Immunity of arbitrator: resignation

(1)The

(2)In

(a)in

(b)for

“(3)Where an arbitrator resigns, a relevant person may (upon notice to the other relevant persons) apply to the court to make such order as it thinks fit with respect to the arbitrator’s entitlement (if any) to fees or expenses or the repayment of any fees or expenses already paid.

(4)For the purposes of subsection (3), each of the parties and the arbitrator is a “relevant person”.”;

(c)in the heading, at the end insert “: entitlement to fees or expenses”.

(3)In

(a)omit

(b) at the end insert—

“(4)An arbitrator’s resignation does not give rise to any liability for the arbitrator unless it is shown that the resignation was, in all the circumstances, unreasonable.

(5)But subsection (4) is subject to—

(a)agreement reached between the parties and the arbitrator as mentioned in section 25(1)(a);

(b)an order made under section 25(3).”

(4)In the following provisions, for “25(3)(b)” substitute “25(3)”—

(a)

(b)

(c)

Prospective

Jurisdiction of tribunal

5Court determination of jurisdiction of tribunal

In

“(1A)An application under this section must not be considered to the extent that it is in respect of a question on which the tribunal has already ruled.”

6Power to award costs despite no substantive jurisdiction

(1)

(2)In

(3)After

“(1A)It is irrelevant for the purposes of subsection (1) whether the tribunal has ruled, or a court has held, that the tribunal has no substantive jurisdiction or has exceeded its substantive jurisdiction.”

(4)In

(5)After

“(3)Subsections (1), (1A) and (2) are subject to any agreement of the parties.”

Prospective

Arbitral proceedings and powers of the court

7Power to make award on summary basis

After

“39APower to make award on summary basis

(1)Unless the parties otherwise agree, the arbitral tribunal may, on an application made by a party to the proceedings (upon notice to the other parties), make an award on a summary basis in relation to a claim, or a particular issue arising in a claim, if the tribunal considers that—

(a)a party has no real prospect of succeeding on the claim or issue, or

(b)a party has no real prospect of succeeding in the defence of the claim or issue.

(2)For the purposes of subsection (1), an arbitral tribunal makes an award “on a summary basis” in relation to a claim or issue if the tribunal has exercised its power under section 34(1) (to decide all procedural and evidential matters) with a view to expediting the proceedings on the claim or issue.

(3)Before exercising its power under section 34(1) as mentioned in subsection (2), an arbitral tribunal must afford the parties a reasonable opportunity to make representations to the tribunal.”

8Emergency arbitrators

(1)The

(2)After

“41AEmergency arbitrators

(1)This section applies where—

(a)the parties have agreed to the application of rules that provide for the appointment of an individual as an emergency arbitrator, and

(b)an emergency arbitrator has been appointed pursuant to those rules.

(2)Unless otherwise agreed by the parties, if without showing sufficient cause a party fails to comply with any order or directions of the emergency arbitrator, the emergency arbitrator may make a peremptory order to the same effect, prescribing such time for compliance with it as the emergency arbitrator considers appropriate.”

(3)In

(a)after “peremptory order” insert “of the tribunal”;

(b)omit “tribunal’s”.

(4)In

(a)in “or (as the case may be) the emergency arbitrator”;

(b)in “or the emergency arbitrator”;

(c)in “peremptory order”;

(d)in “peremptory order”;

(e)in the heading, at the end insert “or emergency arbitrator”.

(5)In

(a)for

“(4)If the case is not one of urgency, the court may act only on the application of a party to the arbitral proceedings made with—

(a)the permission of the tribunal or (as the case may be) the emergency arbitrator, or

(b)the agreement in writing of the other parties.

(4A)An application under subsection (4) may be made only upon notice to the other parties and to the tribunal or the emergency arbitrator.”;

(b)in “or the emergency arbitrator”;

(c)in “, the emergency arbitrator”.

(6)In

(a)after the definition of “dispute” insert—

• ““emergency arbitrator” means an individual appointed as mentioned in section 41A(1);”;

(b)in the definition of “peremptory order”, after “section 41(5)” insert “or 41A(2),”.

(7)In

9Court powers exercisable in support of arbitral proceedings in respect of third parties

(1)

(2)In “(whether in relation to a party or any other person)”.

(3)For

“(6A)Subject to subsection (7), an appeal lies from a decision of the court under this section.

(7)The leave of the court is required for any such appeal by a party or proposed party to the arbitral proceedings.”

Prospective

Powers of the court in relation to award

10Challenging the award: remedies available to the court

(1)

(2)In

“(b)challenging an award made by the tribunal on the merits because the tribunal did not have substantive jurisdiction.”

(3)For

“(3)On an application under this section, the court may by order—

(a)confirm the award,

(b)vary the award,

(c)remit the award to the tribunal, in whole or in part, for reconsideration,

(d)set aside the award, in whole or in part, or

(e)declare the award to be of no effect, in whole or in part.

(3A)The court must not exercise its power to set aside or to declare an award to be of no effect, in whole or in part, unless it is satisfied that it would be inappropriate to remit the matters in question to the tribunal for reconsideration.”

11Procedure on challenge under section 67 of the Arbitration Act 1996

In (3A) (as inserted by section 10(3)) insert—

“(3B)Rules of court about the procedure to be followed on an application under this section may, in particular, include provision within subsection the Arbitration Act 1996 (3C) (as part of an amendment)">(3C) in relation to a case where the application—

(a)relates to an objection as to the arbitral tribunal’s substantive jurisdiction on which the tribunal has already ruled, and

(b)is made by a party that took part in the arbitral proceedings.

(3C)Provision is within this subsection if it provides that subject to the court ruling otherwise in the interests of justice—

(a)a ground for the objection that was not raised before the arbitral tribunal must not be raised before the court unless the applicant shows that, at the time the applicant took part in the proceedings, the applicant did not know and could not with reasonable diligence have discovered the ground;

(b)evidence that was not put before the tribunal must not be considered by the court unless the applicant shows that, at the time the applicant took part in the proceedings, the applicant could not with reasonable diligence have put the evidence before the tribunal;

(c)evidence that was heard by the tribunal must not be re-heard by the court.

(3D)Subsection (3B) does not limit the generality of the power to make rules of court.”

12Challenging the award: time limit

(1)

(2)In “the applicable date”.

(3)After

“(3A)In subsection (3), “the applicable date” means—

(a)in a case where there has been any arbitral process of appeal or review, the date when the applicant or appellant was notified of the result of that process;

(b)in a case where the tribunal has, under section 57, made a material correction to an award or has made a material additional award, the date of the correction or additional award;

(c)in a case where a material application for a correction to an award or for an additional award has been made to the tribunal under section 57 and the tribunal has decided not to grant the application, the date when the applicant or appellant was notified of that decision;

(d)in any other case, the date of the award.

(3B)For the purposes of subsection (3A)—

(a)a correction to an award,

(b)an additional award, or

(c)an application under section 57,

is “material” if any matter to which it relates is material to the application or appeal under section 67, 68 or 69.”

(4)At the end insert—

“(9)In this section, a reference to available recourse, or to anything done, under section 57 includes a reference to available recourse, or to anything equivalent done, pursuant to agreement reached between the parties as mentioned in section 57(1).”

Prospective

Appeals from High Court decisions

13Appeals to Court of Appeal from High Court decisions

(1)In

“(g)from a decision of the High Court under Part 1 of the Arbitration Act 1996 in a case where that Part makes provision about appeals from the decision, except in accordance with that provision;”.

(2)In

“(fa)from a decision of the High Court under Part 1 of the Arbitration Act 1996 in a case where that Part makes provision about appeals from the decision, except in accordance with that provision;”.

(3)In

Prospective

Miscellaneous minor amendments

14Requirements to be met for court to consider applications

(1)The

(2)In

(a)in

(b)omit

(c)in “either condition specified in subsection (2) is”.

(3)In

(a)in

(b)in

(c)in “either condition specified in subsection (2) is”.

15Repeal of provisions relating to domestic arbitration agreements

Omit the following provisions of the

(a)

(b)