This February 24 was completed with the real sanction, the reform of the 1996 arbitration law of England, Wales and Ireland of the North, after having processed both in the House of Lords and in the House of Commons. It is expected that it enters into force shortly, on the date determined by the Secretary of State. Scotland is governed by the 2010 Arbitration Law.
From our Chartered Institute of Arbitrators Ciarb, Cristen Bauer, Head of Policy said: “As the main professional organism worldwide for the dispute resolutors, we are delighted to see that the arbitration law has obtained the real sanction. We work in close collaboration with the United Kingdom Law Commission and other officials during the review of the Law of Arbitration of 1996 Recommendations have been included in the final report and that all recommendations of the review have been adopted “
Indeed, Ciarb has been consulted in the elaboration of this important reform in the 1996 arbitration law and thus we can affirm the leader imprint in the improvement of the dispute solution.
This is what I call attention to various improvements that will make us reflect and quote specifically:
(-) In a contract that provides, to resolve its disputes, the law applicable to the arbitration clause (arbitration agreement), in the absence of a specific agreement between the parties, this law is the law of the headquarters of the arbitration. Applicable to commercial arbitration and not to arbitration that is regulated in investment treaties;
(-) On the disclosure duty of the referees, when the acceptance of an arbitration procedure is studied: there is a new duty of revelation for the referees, which requires them to reveal to the parties any circumstance that could reasonably give rise to justifiable doubt about their impartiality, although here the extension of the immunity of the arbitrators is joined in the face of the responsibility for resignations and the costs of the request for the renunciations. Ordinary jurisdictional for their dismissal, in order to help referees to make odd decisions;
(-) Faculty of issuing summaries, that is, if the arbitral jurisdictional court considers that the plaintiff or the defendant have no real perspectives to succeed in relation to the claim or the issue submitted to arbitration, this Court has the power to issue a summary award on that claim or issue;
(-) Emergency arbitration expands its powers, specifying that an emergency referee can issue a precautionary order if its instructions are not fulfilled, and that this precautionary order can be enforced by means of a request to the ordinary jurisdictional court, that is, it enhances the support of the ordinary jurisdictional courts to the arbitration function, supporting the actions of the emergency referees to enhance their effectiveness;
(-) Simplify judicial procedures related to arbitration to increase clarity and reduce delays and costs for the parties;
(-) Reinforcement of the support of the ordinary jurisdictional courts to the arbitral jurisdictional procedure in the field of third parties does not start in the arbitration, that is, to preserve evidence, to grant precautionary measures and other provisional measures to be effective when a “necessary demanded” is not one of the arbitration parts.
In short: the capacity of the referees is enhanced in order to issue a summary award, it implies saving direct costs in time and management of the arbitration procedure, although the parties are also enhanced in the drafting of the contracts to carefully observe the law applicable to the headquarters of the contract and the law applicable to the dispute resolution clause.
All this implies an improvement of the regulations of the arbitration institutions in line with the reform of the Arbitration Law, promotes more efficiency, legal certainty and accelerating the times in the procedures.
These improvements are in line with the understanding of the extrajudicial methods of prevention and resolution of disputes, together with the transaction costs that are avoided.
A better economic flow and welfare in the parties is created: companies, corporations, individuals in sum civil society.
Improvements in production costs and opportunity costs. There will always be a transaction problem, although the choice of the appropriate territorial forum, understanding the most real friend jurisdiction to the interests of the parties in the conflict, taking into consideration the international connections will cause well -being if the solution to avoid or mitigate the greatest problem is adapted.
It will be necessary the advice of the most appropriate professionals, we foresee from the Iberian chapter of the European Branch of the Chartered Institute of Arbitrators Relevance is the key, the result of a rigorous study of the best prevention before the conflict, advising our clients: civil society.
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