Practitioners and stakeholders in the arbitration community have welcomed the long-awaited Arbitration Act 2025, which has now received Royal Assent, marking the most significant update to English arbitration law in nearly three decades. This milestone concludes a years-long process initiated by the Law Commission’s 2023 recommendations and underscores the UK government’s commitment to maintaining London as an arbitration hub.
arbitration agreement (AA)
French Supreme Court on Track to Annul a US$15 Billion Award against Malaysia
By Ilona Trouyet on
On November 6, 2024, the French Supreme Court rejected the enforcement of an interim award on jurisdiction in the legal saga opposing Malaysia to the heirs of the Sultan of Sulu and spanning several jurisdictions. The Supreme Court ruled that the arbitration clause in an 1878 agreement – and on the basis of which a US$15 billion award has since been issued against Malaysia – is null and void. This decision will presumably lead the French Supreme Court to annul the US$15 billion award itself next.
Reform of the English Arbitration Act 1996: The Arbitration Bill in its New Form
By Alexis L. Namdar & Dorothy Murray on
We are keeping an eye on the progress of the reform of the English Arbitration Act 1996. The Arbitration Bill, first introduced in November 2023, was designed to update the Arbitration Act 1996 and reinforce England’s position as an attractive forum for international arbitration.
As noted in our most recent blog in this series, the bill was shelved when the 2024 English general election was called. However, in July 2024, the new Labour government reintroduced the bill and it resumes its journey through the UK parliament (tracker). The bill is currently in the upper house of the UK parliament, after which it will be introduced to the lower house for further debate, scrutiny and approval – if both houses agree. Given the support the bill has garnered to date, is likely to pass during the current legislative session (in late 2024 or early 2025).
Exodus From The Energy Charter Treaty – What is Left of Europe’s Protections for Investors?
By Ilona Trouyet & Alexis L. Namdar on
As of January 2024, France, Germany and Poland have officially withdrawn from the Energy Charter Treaty (ECT). Their decision to withdraw from the treaty follows a recent European Commission proposal for a mass exodus from the ECT by EU member states, which effectively will limit protections granted by the treaty previously enjoyed by direct investors and asset managers with portfolio companies in the energy sector.
Reform of the English Arbitration Act 1996 – The Law Commission’s Final Report
By Julia Bihary & Alexis L. Namdar on
We have previously reported on changes the Law Commission was considering to the Arbitration Act 1996 (the Act). The Law Commission has now published its final report (the Final Report, available here).
The report draws to a close a review of English arbitration legislation that began in January 2022. A draft bill to implement the Commission’s conclusions and recommendations into law is provided with the report so it is now for the UK government to decide whether to introduce those changes to parliament.
Ninth Circuit Holds Clause Delegating Authority to Decide Arbitrability Is Valid Even If Broader Arbitration Agreement Is Not
By Russell T. Gorkin on
Parties to an arbitration agreement sometimes choose to include a delegation clause, which is a provision that delegates to the arbitrator—rather than a court—gateway questions of arbitrability, such as whether the agreement covers a particular controversy or whether the arbitration provision is enforceable at all. See Caremark LLC v. Chickasaw Nation.
In Holley-Gallegly v. TA Operating, LLC, the Ninth Circuit recently reinforced the Supreme Court’s decade-old distinction between the analysis needed to determine whether a dispute is subject to arbitration on the one hand, and whether an arbitrator has been legally delegated the authority to make that threshold determination on the other. The decision provides important lessons to practitioners litigating disputes regarding the enforceability of delegation clauses.
Drafting an Arbitration Agreement? – Remember Four S’s
By Alexis L. Namdar & Dorothy Murray on
Last month saw the end of the second round of the UK Law Commission’s consultation on reform of the Arbitration Act 1996, the legislation which provides the framework for arbitration in England and Wales. We have reported on the current status of the consultation and are watching for the final recommendations.
Reform of the English Arbitration Act 1996: Three Areas under Scrutiny
By Alexis L. Namdar & Julia Bihary on
England is one of the most popular jurisdictions for commercial parties to resolve disputes through arbitration: London and Paris were ranked as the top two preferred cities in the world in 2022. To ensure England’s arbitration regime remains modern and competitive, the Law Commission – a body responsible for considering and recommending legislative change to the UK government – is currently considering updates to the legal framework of arbitration in England & Wales, the Arbitration Act 1996 (the Act).