Updates from leading arbitral institutions and the U.K.'s Arbitration Bill signal a continued push for efficiency, innovation and clarity as rule changes are shaping the future of international arbitration in 2025. Read about these developments in an article authored by Haynes Boone Counsel Fiona Cain for The Global Legal Post.
Read an excerpt below:
As 2024 draws to a close, it signifies the end of another year in which international arbitration has continued to advance, and where there have been noteworthy developments that reinforce international arbitration’s place in the dispute resolution landscape. In the UK, the Arbitration Bill is closer to becoming law and is a positive step to ensuring that London maintains its status as a leading seat for international arbitration. Globally, updates to arbitration rules by leading institutions throughout 2024 (set to continue in 2025), demonstrate a commitment to enhancing efficiency and ensuring that these rules meet the needs of their users, reflect advances in technology and remain up to date.
The Arbitration Bill (the “Bill”)
The Arbitration Act 1996 (the “Act”) has governed arbitrations seated in England and Wales for almost 30 years. In 2022 and 2023, the Law Commission undertook a review of the Act to determine whether it was fit for purpose. The answer was yes in nearly all cases; English arbitration law did not need root and branch reform. Instead, a short bill consisting of 16 provisions and covering five main topics was proposed and introduced to the UK Parliament in November 2023. The Bill was on course to be added to the statute books this year but was put on hold when the general election was called in the UK. It was reintroduced by the new Labour government on 18 July 2024 and has now completed its passage through the House of Lords and had its first reading in the House of Commons on 6 November 2024.
The Bill, which has largely remained unchanged during its parliamentary journey, addresses issues which have come before the English courts in recent years. It clarifies the law applicable to arbitration agreements to address the uncertainty created by the Supreme Court decision of Enka v Chubb [2020] UKCS 38, and it codifies arbitrators’ duty of disclosure in response to the decision in Halliburton v Chubb [2020] UKSC 48. It also introduces an express power in relation to the summary disposal of unmeritorious claims, covers the immunity of arbitrators on removal or resignation and revises the procedure in respect of challenging arbitral awards under section 67 of the Act. The limited changes introduced into the Act by the Bill should hopefully be ready to be added to the statute books next year. The changes should mean that the Act will continue to govern arbitrations seated in England and Wales for many years and at the same time ensure that the popularity of London as a leading seat for international arbitration continues.
