If you or your business has been treated unfairly, you can defend your position by arbitration in London. Meanwhile, some change has occurred and international dispute resolution in the UK’s capital will be carried out in accordance with the new regime, which will come into effect in October this year. This blog post provides a brief overview of the novelle rules.
For your info:
London International Court of Arbitration is one of the world’s most respected and reputable dispute resolution centers for entrepreneurs around the world. Most of the parties to the disputes in the cases pending before this court have no English citizenship.
It is a non-for-profit organization that administers arbitration and other ADR procedures of any legal system. It provides maximum flexibility for parties on procedural matters. London arbitration awards will be enforced worldwide after the UK leaves the EU.
However, there are fears that in connection with the withdrawal from the European Union, London Arbitration Court may lose its leading position. In this regard, a reform was initiated to bring it in line with modern requirements and challenges.
Regulatory innovations
The updates cover issues that are not covered in other leading arbitration rules. Among other things, they concern:
- remote court hearing;
- privacy and data protection;
- preventing corruption, money laundering;
- multilateral arbitration in London.
Remote work
Due to the coronavirus pandemic, it has become possible to start an arbitration hearing remotely - via videoconference and other communication technologies. Most court reporting services can provide transcription services via an online platform, including access to live transcription during the hearing.
When resolving international commercial disputes, the court uses electronic signature for the arbitral awards. However, some jurisdictions still have the requirement that the award must be signed with wet ink. If there is a discrepancy between the electronic and paper-based decision forms, the electronic form will prevail.
Arbitrator's Citizenship
Considering the serious consequences that it may have on a range of issues, the constitution of an arbitral tribunal is one of the most important decisions in the arbitration procedure. Therefore, one of the requirements when resolving international arbitration disputes is that the arbitrator is not allowed to preside if he/she has the same nationality as either party.
Security
A new data protection regulation has been introduced regarding the confidentiality of information, protection notice on the website of the arbitral tribunal, which is the “data controller” in its processing.
Expanded privacy provisions:
- The parties must commit to maintaining the confidentiality of all decisions, materials, and documents of arbitration submitted by the other party when resolving disputes through the London proceedings;
- The parties must require a confidentiality obligation from everyone they engage in the arbitration, including the clerk of the tribunal;
- When the parties agree to submit a dispute to arbitration in London, they agree that any transactions must be subject to confidentiality requirements.
Other changes
- The arbitrator has gained the right to hold several partial hearings to determine the legal costs and their distribution between the parties;
- Tribunal clerks must provide a written declaration of impartiality.
Final word
The reform of the London Arbitration Court Rules aims to maintain the world's leading position in the resolution of international commercial conflicts. For a more detailed discussion of the updates, please contact our legal professionals for clarification.
The decision to agree to submit a dispute to binding arbitration as opposed to litigation in court is a significant business decision that should never be made lightly.
It is recommended that both parties retain their own independent legal adviser throughout the process. Our dispute resolution solicitors bring an authoritative and pragmatic approach to the important issues to help you achieve the outcomes you are looking for. We are experienced in the use of various methods of ADR, and we have a strong record of successfully using them to resolve disputes in a cost-effective manner for our clients.
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