Table of Contents
In Short
- Arbitration offers a binding alternative to court litigation for resolving commercial disputes.
- Section 67 of the Arbitration Act 1996 allows parties to appeal an arbitral award if the tribunal lacks substantive jurisdiction.
- Successful appeals can result in the entire or part of the award being set aside.
Tips for Businesses
If involved in arbitration, understand that Section 67 offers a route to challenge an arbitral award based on jurisdictional issues. Ensure you follow the required Civil Procedure Rules and seek legal advice to navigate the process and protect your interests.
If you are part of a commercial dispute, you may choose arbitration to resolve it. Arbitration is where you select an arbitrator or arbitrators to make an arbitral panel to decide on your disagreement. They will do this in an arbitral tribunal and make a binding decision, which is an arbitration award. You may wish to use arbitration to resolve your commercial dispute because it is an alternative dispute resolution (ADR). Therefore, an alternative to court litigation. The latter can be expensive and time-consuming, and the English court expects you will try to resolve it before court proceedings. Therefore, this article will explain section 67 of the Arbitration Act 1996 and the legal guidelines.
What is the Arbitration Act 1996?
The Arbitration Act 1996 is a piece of law that improves the law regarding arbitration. It governs the arbitration process in England, Wales, and Northern Ireland. It is considered to ease the process, reflected in London being one of the world’s leading places for international commercial arbitration disputes to take place.
The Act provides a framework for arbitration proceedings and includes, for example:
- how arbitral awards are enforced;
- how to conduct arbitration proceedings; and
- costs involved in arbitration.
What is Section 67 of the Arbitration Act 1996 About?
Section 67 of the Arbitration Act 1996 allows you to appeal an arbitral award on the basis that you claim the tribunal does not have ‘substantive jurisdiction’.
Unlike some provisions of the Arbitration Act, section 67 is mandatory, meaning that parties to an arbitration agreement cannot agree that it does not apply to their arbitration proceedings. Section 67 is compulsory because the court believes that it is in the public interest to be able to appeal an arbitral award on this basis.
Must the Challenge Under Section 67 Be to an Award?
When you appeal arbitration under section 67 of the Arbitration Act 1996, it says it must be an “award” you challenge. This can be:
- where the award is about the issue of jurisdiction; and
- an award dealing with substantive disputes where the parties or a party alleges the tribunal has no jurisdiction.
How Do I Make a Challenge Under Section 67 of the Arbitration Act?
If you wish to make a challenge under section 67 of the Arbitration Act, you must follow the process in the Civil Procedure Rules (CPR) 62 and comply with the Part 8 procedure in CPR 62.3. A disputes solicitor will be able to guide you through this.
You must give the other party and the tribunal notice and use form N8 to make the application.
What is the Effect of Section 67?
If a party to a commercial dispute in arbitration proceedings successfully appeals the arbitral award through Section 67 of the Act, this can result in any of the following:
- the whole of the arbitral award no longer being in effect;
- part of the arbitral award no longer being in effect;
- an order by the court to set the whole arbitral award aside; and
- an order by the court to set aside part of the arbitral award.
What Does Substantive Jurisdiction Mean?
Substantive jurisdiction refers to three points as defined in the Arbitration Act 1990. One of these concerns is whether the arbitration agreement is valid. When this is challenged or its interpretation is questioned the law applicable is the one relevant to the arbitration agreement rather than the law of the contract in question.
The second two points to which substantive justification refers to are:
- whether the tribunal is constituted correctly; and
- if the issues in the arbitration align with the arbitration agreement,
Broadly speaking, substantive jurisdiction involves the question of whether or not the tribunal has the power to hear the arbitration case.
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Key Takeaways
If you are a part of arbitral proceedings, you can appeal the arbitral award through section 67 of the Arbitration Act 1996, which governs arbitration in England, Wales and Northern Ireland. Section 67 concerns appealing an arbitral award on the basis that a party believes the tribunal does not have substantive jurisdiction. You must be trying to challenge an “award”, and the Act defines what this is. If you wish to challenge an arbitral award under section 67 of the Act, you should take legal advice. You must follow Civil Procedure Rule (CPR) 67 and Part 8. If you successfully appeal an arbitral award under Section 67, it can result in several things, such as the whole of the arbitral award no longer being in effect.
If you need help understanding section 67 of the Arbitration Act and the legal guidelines in the UK, LegalVision’s experienced disputes and litigation solicitors can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. So call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
The Arbitration Act 1996 governs arbitration in England, Wales and Northern Ireland.
Section 67 of the Arbitration Act 1996 concerns how to appeal an arbitral award on the basis that you claim the tribunal does not have substantive jurisdiction.
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