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Arbitration meaning

/ɑːbɪˈtreɪʃ(ə)n/
What does Arbitration mean?
Arbitration is a private process where parties resolve disputes by one or more arbitrators who issue a final, binding award instead of a court judgment. It is consensual, usually agreed by an arbitration clause, and the law of the seat governs the procedure (lex arbitri). In England and Wales and Northern Ireland, the Arbitration Act 1996 applies. Courts stay court proceedings in favour of arbitration, provide support, and enforce awards; challenges are limited to lack of jurisdiction (s.67), serious irregularity (s.68) and, unless excluded, appeal on a point of law (s.69). In Scotland, the Arbitration (Scotland) Act 2010 provides a similar framework, with appeal on a point of law available only if the parties opt in. In Ireland, the Arbitration Act 2010 gives the UNCITRAL Model Law the force of law; there is no appeal on a point of law, and set‑aside and enforcement follow Model Law/New York Convention grounds. Key features include party autonomy over procedure (institutional or ad hoc), appointment of the arbitral tribunal, confidentiality (generally recognised), interim measures from tribunals and courts, separability of the arbitration agreement and kompetenz‑kompetenz. Common in cross‑border commercial, construction, energy and financial services disputes; awards are enforceable under the New York Convention.
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View the related Checklists about Arbitration

CHECKLISTS
Arbitration funding and third-party finance: practitioner checklist on options, funder engagement, confidentiality, champerty, disclosure and security for costs

When considering an arbitration, you should consider: how the dispute will be financed and managed overall can the client realistically cover your professional fees together with the arbitration expenses? could another party or source be prepared to pick up the entire bill? is any relevant insurance already in place and available? would after-the-event insurance cover be an appropriate option? might your firm accept a conditional fee arrangement, a damages-based agreement, or some other funding structure? See Funding Arrangements—Overview (note: this link is not arbitration-specific) is the client open to exploring third-party funding? ...

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CHECKLISTS
Commencing Arbitration under the 2017 ICC Rules: Key Steps, Deadlines, Costs and Arbitrator Appointments (including Expedited and Emergency Procedures) [Archived]

CORONAVIRUS (COVID-19) This Checklist is archived and no longer being actively maintained. Numerous arbitral organisations have responded to the coronavirus pandemic by issuing practical guidance and/or making adjustments to their standard procedures and working practices. For further details on how this material and associated arbitration proceedings could be affected, see Practice Note: Arbitral organisations and coronavirus (COVID-19)—practical impact [Archived] [Archived] [Archived]. For additional information, see: Coronavirus (COVID-19) and arbitration—overview. For direct links to guidance on the 2021 ICC Rules (effective 1 January 2021) and the 2012 ICC Rules, see: ICC arbitration—overview...

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CHECKLISTS
Archived flowchart of LCIA Arbitration Rules 2014 procedure and default written timetable (Art 15), from commencement to enforcement; superseded by LCIA Rules 2020

ARCHIVED This Flowchart is archived and is no longer maintained. FORTHCOMING CHANGE On 11 August 2020, the LCIA released the 2020 edition of its Arbitration Rules, which take effect on 1 October 2020 (the LCIA Rules 2020). These apply to all arbitrations begun on and after that date. A new set of Practice Notes for the LCIA Rules 2020 is in preparation...

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View the related Flowcharts about Arbitration

FLOWCHARTS
Defects under JCT Standard Building and Design and Build Contracts 2024/2016: Pre-Practical Completion, Rectification and Post-Rectification Flowchart

This flowchart takes you through the stages of a CIETAC arbitration under the CIETAC Arbitration Rules 2024 Although each arbitration differs and the tribunal will tailor proceedings to specifics of the case, it remains vital to appreciate how an arbitration will 'usually' progress, together with the timescales likely to apply...

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FLOWCHARTS
CIETAC Arbitration Rules 2024: Flowchart of Procedural Stages and Indicative Timelines

This flowchart supports a tenant’s bid to extend a lease under the Leasehold Reform, Housing and Urban Development Act 1993 (LRHUDA 1993). It explains the procedure beginning with service of the tenant’s section 42 notice, then the landlord’s section 45 counter-notice, and the time limits for issuing applications to the First-tier Tribunal (FTT) (or, in Wales, the Leasehold Valuation Tribunal (LVT)), and/or to the County Court where required. Note 1 See Practice Note: Guide to lease extensions of flats under the Leasehold Reform, Housing and Urban Development Act 1993—Preparation for securing a lease extension...

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FLOWCHARTS
Archived: Commercial Rent (Coronavirus) Act 2022 arbitration: eligibility, notices, hearings, awards and moratorium end; scheme closed to new references (England and Wales)

This Flowchart This Flowchart supports your decision on whether a data protection impact assessment (DPIA) is necessary when initiating a new project that involves personal data from the outset, helping you decide effectively. It sets out: three scenarios in which a DPIA is mandatory under Article 35(3) of Assimilated Regulation (EU) 2016/679, UK General Data Protection Regulation (UK GDPR); and ten further processing activities for which the Information Commissioner’s Office (ICO) requires a DPIA to be carried out Where a DPIA is not needed, you should think about using a simpler form of review, which we call a privacy impact assessment (PIA) instead. The Flowchart enables you to determine which assessment—DPIA or PIA—best fits your project in practice. For additional guidance on DPIAs and PIAs, see Practice Note: How to complete a data protection impact assessment—DPIA...

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NEWS
English Commercial Court refuses permission to amend to add s 67 BIT challenge as time-barred under AA 1996 s 73; nationality arguable but for lack of reasonable diligence.

The Czech Republic v Diag Human SE and another [2024] EWHC 708 (Comm) What are the practical implications of this case? The judgment offers practical guidance on how the ‘reasonable diligence’ condition in AA 1996, s 73(1) operates. It warns parties in arbitration to remain vigilant to unfolding factual matters that may demand further enquiry, in order to satisfy the ‘reasonable diligence’ requirement and maintain an arguable case that is not rendered time-barred under AA 1996, s 73(1). It also emphasises the elevated duty of care owed by investment arbitration practitioners when advising clients in arbitral proceedings, so as to avoid claims of insufficient diligence in the conduct of jurisdictional challenges before the tribunal. What was the background? ...

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NEWS
English Commercial Court grants anti-suit injunctions to uphold Paris-seated ICC arbitration and restrain Russian proceedings—Bayerische Landesbank v Ruschemalliance

Bayerische Landesbank and another v Ruschemalliance LLC [2024] EWHC 1822 (Comm) What are the practical implications of this case? In keeping with comparable determinations, this judgment succinctly sets out the jurisdictional thresholds and principal considerations the court applies when evaluating applications for anti‑suit injunctions. It underscores the judiciary’s practical bent and operates as a constructive illustration of inter‑court co‑ordination, projecting a clear signal where numerous contests flow from identical underlying events, even though such matters are dealt with at varying moments and tiers of the court structure. In sum, the outcome reasserts the English courts’ steadfast commitment to upholding arbitration, including in circumstances where the arbitral seat is situated in a foreign state. What was the background? In 2021, the defendant, Ruschemalliance LLC (“RCA”), a Russian entity, entered into two Engineering, Procurement and Construction agreements for the development of liquefied natural gas and gas processing plant facilities in Russia. The obligations owed by RCA’s counterparties, the German companies Linde GmbH and Renaissance Heavy Industries LLC (together,...

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NEWS
UK employment law weekly highlights: 28 March 2024—April reforms, flexible working Code, National Insurance cuts, minimum wage, Vento bands, industrial action, Northern Ireland updates

In this issue Working time and flexible working Pay Tax Prohibited conduct (discrimination etc) Employment tribunal equality claims Diversity and gender pay gap Industrial action Unfair dismissal Employment tribunals Immigration Northern Ireland ESG and sustainability: employment issues Daily and weekly news alerts Dates for your diary Trackers New Q&As Working time and flexible working Code of Practice (Requests for Flexible Working) Order 2024 (SI 2024/429): The Order designates 6 April 2024 as the date on which the updated Code of Practice on handling requests for flexible working, issued by the Advisory, Conciliation and Arbitration Service (Acas) under section 199 of the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992), takes effect. It also clarifies that the revised Code does not cover applications for flexible working made under section 80F of the Employment Rights Act 1996 (ERA 1996) that are lodged on or before 5 April 2024;...

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View the related Practice Notes about Arbitration

PRACTICE NOTES
Agricultural holdings disputes in Scotland: Scottish Land Court jurisdiction, exceptions, procedures and remedies; arbitration, mediation and appeals

For many years, virtually every disagreement about agricultural tenancies was sent to arbitration at the outset. The rationale was that questions concerning agricultural holdings often have a strong practical dimension, so arbitration was thought a more suitable forum than the courts. This reflected the earlier assumption that practical considerations predominated in such cases, making a court reference less apt back then. Over time, however, matters of considerable legal intricacy also came before arbitrators. With the enactment of the Agricultural Holdings (Scotland) Act 2003 (AH(S)A 2003), policy shifted, and the main route for resolving disputes about agricultural tenant issues is now referral to the Scottish Land Court. At the same time, arbitration procedures were streamlined, and alternative processes, eg mediation, were enabled. Although the Agricultural Holdings (Scotland) Act 1991 (AH(S)A 1991) still sets out distinct mechanisms for dispute resolution, AH(S)A 2003 has substantially reshaped them, so that the arrangements for resolving disputes under 1991 Act Tenancies are, in large part, aligned with those for 2003 Act Tenancies...

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PRACTICE NOTES
Family arbitration and court oversight in England and Wales: stays, consent orders, and challenges post-Haley for financial remedies and children under the IFLA scheme and Arbitration Acts 1996/2025

This Practice Note clearly explains the courts’ function within the context of family arbitration. In matters concerning families, any arbitration normally proceeds under the Institute of Family Law Arbitrators (IFLA) scheme. The courts continue to have overall jurisdiction over any family arbitration award or determination and will endorse the award or determination provided it falls within recognised limits, thereby fully respecting the parties’ autonomy. For further practical guidance on, among other things, the conduct of arbitration in family cases, the principal advantages of arbitration, the scope of the IFLA scheme and the arbitrator’s powers, please see Practice Note: Family arbitration—introduction. Acting on Law Commission proposals to reform the Arbitration Act 1996 (AA 1996) and to bring in measures to bolster arbitrator immunity, enhance overall case efficiency and clarify the court’s powers, a draft Bill reflecting those recommendations was formally laid before Parliament and subsequently obtained Royal Assent on 25 February 2025. Accordingly, the Arbitration Act 2025 (AA 2025) modifies AA 1996 from 1 August 2025 by virtue of the Arbitration...

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PRACTICE NOTES
Construction disputes: a practical starter guide for trainee solicitors covering time, money and defects claims, adjudication, dispute boards, TCC litigation, arbitration and ADR

This Practice Note offers a beginner’s overview of construction disputes, intended for trainee solicitors and others unfamiliar with the area. It outlines what a construction disputes lawyer does, the disputes that frequently occur on projects, and gives a primer on adjudication, dispute boards, proceedings in the Technology and Construction Court (TCC), construction arbitration and alternative dispute resolution (ADR). It also considers the nature of disputes that routinely emerge on construction projects and the role undertaken by the disputes lawyer. We suggest reading Practice Note: Construction law—new starter guide, which sets out the core principles of construction law and the characteristics of construction projects, before tackling this note. The content of this Practice Note is also available as a PowerPoint deck with speaker notes—see: Introduction to construction disputes—training materials. You might also consider Practice Note: Dispute Resolution—new starter guide, which addresses dispute resolution more broadly. The work of a construction disputes lawyer Construction lawyers handling disputes (often described as contentious or back-end practice) are typically asked to support clients...

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View the related Precedents about Arbitration

PRECEDENTS
Settlement agreement precedent (Scotland) for civil court or arbitration disputes, including release, agreement not to sue, confidentiality and joint minute

This Agreement is dated [ date ] Parties [ insert name of the pursuer ], a company registered in Scotland (no [ insert company number ]), whose [ registered office OR principal place of business ] is at [ insert address ] (the Pursuer) [ and ] [ ; ] [ insert name of defender ], a company registered in Scotland (no [ insert company number ]), whose [ registered office OR principal place of business ] is at [ insert address ] (the Defender). Each being a Party and, together, the Parties. Whereas (A) [ Insert details of the background to the dispute eg ‘The Parties entered into a contract for the supply of certain goods etc ]. (B) A dispute has emerged between the Parties regarding [ insert details of the dispute ] (the Dispute). (C) [ Proceedings were raised by the Pursuer against the Defender on [ date ] by way of [ Summons OR...

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PRECEDENTS
Comprehensive Amendments to SBCC 2016 Standard Building Contract (Without Quantities) for Scotland: Design Liability, Third-Party Agreements, Insurance, Bonds, Collateral Warranties, Payment, Retention, Fluctuations, Dispute Resolution and Insolvency

The Contract comprises the completed Standard Building Contract Without Quantities for use in Scotland 2016 published by the SBCC subject to the following amendments: Recitals and Articles updated: contractor to provide a master programme and Schedule of Information Requirements; CDP responsibility accepted; Principal Contractor duties priced; arbitration deleted; Schedule of Amendments prevails; Third Party Agreements duties. Contract Particulars: arbitration entries removed; Rectification Period set at 12 months; fluctuations and certain PII/guarantee entries deleted. Conditions: key definitions revised (Practical Completion, Copyright Material, Design sub‑contractors, Funder, Site); Scottish jurisdiction; approvals mean principles only; entire agreement; variations in writing. Design/materials/programming: contractor accepts ER/CP; quality and non‑deleterious materials; programme reporting; site risk; drawings/info supply; tighter discrepancy notices. Time/defects: mitigate and advise on delay; narrower Relevant Events; Practical Completion clarified; stronger rectification, consequential damage and indemnity; phased as‑built/occupation information. IP/confidentiality/BIM: broader licence, moral rights waivers and delivery; confidentiality reinforced; BIM where adopted. Management/sub‑contracting: access, approved Site Manager, meetings; prescribed sub‑contracts; collateral warranties/third‑party rights; CDM duties; insurance...

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PRECEDENTS
Mutual standstill agreement extending limitation and deferring proceedings, with notice and termination mechanisms (England and Wales)

This Agreement dates from [ insert day ] of [ insert month ] 20[ insert year ] Parties 1 [ Insert full name and address of individual or company name, number and address of registered office ] ( Party A ) 2 [ Insert full name and address of individual or company name, number and address of registered office ] ( Party B ) each a ‘Party’ and jointly the ‘Parties’ The Parties agree: 1 Definitions and interpretation Dispute • denotes any claim stemming from or relating directly to [ Insert description of the dispute/circumstances giving rise to the dispute ]. Proceedings • signifies any court proceedings within England and Wales, plus also any arbitration concerning the Dispute. Period of Extension • denotes the duration that starts on the date of this Agreement and runs until it is ended in accordance with clause 3. Extension Date • signifies the date upon which the Period...

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View the related Q&As about Arbitration

Q&As
Virtual arbitration hearings in COVID-19: logistics, pros/cons

Clare Ambrose, Twenty Essex The clear benefit is that the hearing can proceed and the dispute be determined, which is the tribunal’s fundamental objective. The tribunal’s obligation to be fair to both sides does not compel an in-person hearing; if suitable arrangements permit the hearing to happen, that will be a weighty factor in favour. There is also a possible gain in cost efficiency: although premium technology may incur expense, savings on hearing venues and travel and hotel accommodation could be substantial. Virtual hearings remain relatively novel, so practice is evolving to manage practicalities and logistics across the board. The range of technological solutions is broad and warrants careful review and thorough investigation by the parties involved. For the hearing to run smoothly, every participant in the arbitration should trial their equipment in the precise location from which their virtual hearing will (for each of them) be conducted...

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Q&As
Arbitration: Travel‑Restricted Expert/Factual Witness at In‑Person Hearing—Approach to Witness, Client, Opponent and Tribunal

Clare Ambrose, Twenty Essex The party’s representative should liaise with the witness and the other side. It should seldom be impossible to resolve matters by arranging for evidence to be given remotely. Such an approach is fairly standard practice...

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