Strengthened immunity protection proposed in Arbitration Act reform

Arbitrators' common law duty to disclose any reason for doubts as to their impartiality could be codified under proposals from the Law Commission of England and Wales today. The recommendation is among proposed updates to the Arbitration Act 1996 which the independent reform body has published along with draft legislation. 

Recommended changes include measures to strengthen arbitrator immunity, improve the efficiency of cases, clarify the powers of courts, and refine the framework for challenging an arbitrator and their decisions. In other areas, such as provisions on confidentiality, the commission argues that there is no need for reform as the law is already working well.

It said the changes would  cement the UK’s position as a leading seat for arbitration by providing a clear and comprehensive legal framework while maintaining the flexibility of the law.

Professor Sarah Green, commissioner for commercial and common law, said: 'Our recommendations for reform aim to maintain the core principles of the Arbitration Act 1996 while introducing improvements to create further clarity, ensuring the fair and efficient resolution of disputes. With these improvements, we hope that the act provides a modern and effective legislative framework for many years to come.

'The Arbitration Act 1996 has played a key role in securing the UK’s world leading reputation for arbitration and our reforms will build on this.'

The government said it would review the recommendations. Lord Bellamy, justice minister, said: 'We will respond to the Law Commission’s report shortly so we can maintain the UK’s reputation as a world leader in resolving legal disputes.'

Bar chair Nick Vineall KC welcomed the 'characteristically careful and balanced' proposals calling on the government to find parliamentary time for the draft bill. 'London has a well-deserved reputation as the foremost centre for international arbitration,' Vineall said. 'It is important to legislate to make the modest changes to the arbitration regime which the Law Commission has recommended in order to maintain and enhance that reputation.'