This guide outlines how to resolve commercial disputes.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n When businesses carry out commercial arbitration to resolve their commercial dispute, the rules they may use can vary. However, all UK arbitration must follow The Arbitration Act 1966 <\/em>(the \u2018Act\u2019). Such a law can change over time, as the UK is a popular location for commercial arbitration. Being aware of potential developments in the law is especially important, as the Law Commission recently reviewed the Act to ensure it was fit for purpose. To help you understand key principles of arbitration law, as well as possible changes, three key points about UK arbitration law are set out below. <\/p>\n\n\n\n Arbitration is supposed to be confidential as it takes place outside of a court of law. You agree with the other party that the arbitration will be confidential through your contract or arbitration agreement. However, this is not legally required since ADR is supposed to be more flexible than court proceedings.<\/a> Notably, it is not certain that all types of arbitration should be confidential.<\/p>\n\n\n\n The Law Commission, as part of their review, considered the possibility of mandating confidential arbitrations in the Act. If so, this would reinforce the importance of privacy and provide you with confidence that your arbitration will remain confidential. <\/p>\n\n\n\n The Law Commission also recommended that the Act clarify what law is relevant to the arbitration. This would be useful to the parties involved in the UK, especially where the matter is complex or takes place across borders. The proposal is that the Act requires that the arbitration be governed by the relevant laws in the seat of arbitration, or where the arbitration takes place. The only time this would not be the case is when you and the other party expressly agree otherwise. <\/p>\n\n\n\n Currently, where an arbitration agreement does not clarify what law applies, the situation is not completely clear. Instead, parties have to see if the arbitration agreement<\/a> is part of a more general contract that specifically outlines what location\u2019s law should be applied. Otherwise, parties have to see which law seems to be the closest law to the arbitration agreement. This can be confusing.<\/p>\n\n\n\n It is currently possible under UK arbitration law for a party to a commercial dispute to challenge an arbitral award because they claim the arbitration body lacks the appropriate authority. However, the Law Commission reviewed this due to concerns about parties challenging arbitral awards twice: once to the tribunal who ruled on the award and again in court. <\/p>\n\n\n\n While the Law Commission decided that a full rehearing can be allowed, they proposed that there should be some limits to parties challenging an arbitrator award. These, it suggested, should be detailed in court rules rather than the Act. These limits apply where a party has previously challenged the tribunal\u2019s authority. Limits at a challenge<\/a> include:<\/p>\n\n\n\n3 Key Elements of UK Arbitration Law for Commercial Disputes<\/h2>\n\n\n\n
1. Confidentiality<\/h3>\n\n\n\n
2. Law Relevant to the Arbitration Agreement<\/h3>\n\n\n\n
3. Challenging Arbitral Awards<\/h3>\n\n\n\n
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\n Guide to Resolving UK Business Disputes<\/div>\n
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