The Importance of Pre-Arbitral Steps: The Latest English High Court Approach

International arbitration is facing continued (if not increased) problems stemming from multitier arbitration clauses. What should happen when one party has not complied with a pre-arbitral step but nonetheless commenced arbitral proceedings? Typically, the parties have a satellite dispute: on one side, whether the commencement of the arbitration is void thus depriving the arbitral tribunal of all jurisdiction due to the non-compliance and on the other side, whether such non-compliance is an issue of admissibility that falls within the arbitral tribunal’s remit to address by way of procedural modification (for example, by ordering a stay of proceedings pending completion of a negotiation period).

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Agreement on “non-binding” arbitration not an arbitration agreement

An agreement to submit to non-binding arbitration is not an enforceable arbitration agreement under the English Arbitration Act 1996. The court dismissed an application for stay of English court proceedings under s9, citing absence of a valid arbitration agreement between the parties. The court held that an arbitration agreement must provide for a binding determination of disputes: IS Prime Ltd v (1) TF Global Markets (UK) Ltd (2) TF Global Markets (AUST) PTY LTD (3) Think Capital Ltd (2020) [2020] EWHC 3375 (Comm)

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English Supreme Court rejects universal application of “gold standard” for disclosure of arbitrators’ interests

In this vein, several arbitral institutions’ rules impose what is known as the “gold standard”, requiring arbitrators to disclose interests which might lead not only to actual bias, but also to the appearance of bias. However, in the recent case of Halliburton v Chubb, the English Supreme Court has emphasised the need to balance disclosure and confidentiality, and has recognised the variety of custom and practice in relation to disclosure among various industries’ arbitral bodies.

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New mediation pilot to support landlords and renters

A new mediation pilot will be introduced next month with a view to supporting landlords and renters who face court procedures and potential eviction, the government has announced. Helping to resolve disputes through mediation will enable courts to prioritise urgent cases, supporting landlords and tenants to resolve issues quickly without the need for a formal hearing.

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