The Labour government is progressing with an Arbitration Bill aimed at speeding up the resolution of contractual and financial disputes.
- Following the King’s Speech, the bill, initially introduced by the Conservative government, will continue its journey through parliament.
- The proposed legislation covers both domestic and international claims, offering modern alternatives to court proceedings.
- A new legal obligation for arbiters to disclose conflicts of interest is a key feature of the bill.
- The construction industry has welcomed the bill, recognising its potential to streamline dispute resolution processes.
The Arbitration Bill, designed to accelerate the settlement of contractual and financial disputes, is moving forward under the new Labour government. Following recent discussions highlighted in the King’s Speech, the bill is now set to continue its legislative journey.
Initially introduced to parliament by the former Conservative government in November, the bill had reached the committee stage prior to the call for a general election. Its progress signals an intent to modernise the framework that governs arbitration, particularly for the construction industry, which often deals with intricate disputes requiring efficient resolution.
Covering both domestic and international claims, the proposed legislation aims to update the rules that guide independent arbitral bodies, offering an alternative to traditional court proceedings. This alternative is crucial when parties involved in a dispute cannot reach an agreement on their own.
A significant aspect of the bill is the introduction of a new legal duty for arbitrators, requiring them to disclose any potential conflicts of interest in the cases they handle. Furthermore, the bill empowers arbitrators to deliver summary judgments on claims that clearly lack merit, effectively reducing time and cost for all parties involved.
David Owens, a construction partner at the law firm Sharpe Pritchard, expressed approval of the bill’s return, stating, “Arbitration is an essential tool for construction dispute resolution. It is often the preferred route in international construction contracts and frequently chosen over litigation in domestic contracts because it keeps disputes private and avoids the long delays of court action.” Owens further highlighted that the bill will modernise arbitration law and introduce provisions that clarify which jurisdiction’s laws apply to arbitration, as well as imposing a duty of candour on arbitrators, ensuring transparency and impartiality.
The bill not only promises to refine the arbitration process but also signifies a notable transition towards improved transparency and efficiency in handling disputes, aligning with global best practices.
The Labour government’s advancement of the Arbitration Bill marks a significant step towards modernising dispute resolution in the construction industry.
