Legislation to modernise the 1996 Arbitration Act - including measures allowing arbitrators to make summary awards on claims that have no prospect of success - returned to parliament yesterday, a day after being announced in the King's speech.

The Arbitration Bill, introduced by justice minister Lord Ponsonby, follows a bill proposed by the last government which was lost in the pre-election wash-up in May. That in turn was based on last year's Law Commission recommendations on reforming the 1996 act. 

According to the government, the bill 'aims to modernise arbitration laws from 1996 and secure London as the global centre for arbitration, as well as ensuring decisions made by our arbitrators are enforced in other countries and are recognised by governments internationally'.

Lord Ponsonby

Justice minister Lord Ponsonby

Source: Parliament.uk

Introducing the measure in the Lords, justice minister Lord Ponsonby (the former hereditary peer Baron Ponsonby of Shulbrede) said: 'This government is committed to securing the UK as a world leader in dispute resolution. Modernising the quarter-century old laws around arbitration will make it quicker, cheaper and more efficient for people and businesses looking to settle legal disputes. And helping our world-leading legal services sector to flourish will cement the UK’s position in this high-value sector – worth at least £2.5 billion to the British economy every year.' 

Among other measures, the bill will codify a duty on arbitrators to disclose circumstances that might give rise to doubts about their impartiality. Arbitrators will have powers to make awards on a summary basis on issues that have no real prospect of success, avoiding nuisance claims and making arbitrations more efficient, the government said. 

Welcoming the bill, bar chair Sam Townend KC said: 'This important reform will help to ensure London maintains its deserved reputation as the foremost centre for international arbitration, supporting our legal profession, and is an important contribution to the country’s income from exports.'

The bill will now go to its second reading in the House of Lords.

 

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