GENESIS OF THE ENGLISH ARBITRATION ACT 1996

Arbitration in England substantially rests on the Arbitration Act 1996 (England and Wales). This statute reflects the sequence of topics in the UNCITRAL Model Law. However, the English Act covers a wider range of matters than the Model Law. The main deviation from the Model Law is section 69 of the Arbitration Act 1996, which permits appeals (subject to the High Court's permission) from awards where there is alleged to have been an error of English law: 18.67 ff.

The Court of Appeal in Cetelem SA v. Roust Holdings Ltd (2005: 13.18 to 13.21) noted that the Departmental Advisory Committee's report (notably the 1996 report) provides a valuable source of guidance when construing the Act, although the fact that a particular matter is not mentioned in that report does not prevent the court from deciding that this matter is in fact compatible with the Act.

The 2006 ‘Report on the Arbitration Act 1996 (England and Wales)’ reveals that the English legislation is perceived as effective. No changes were recommended.

MAIN ELEMENTS OF THE ENGLISH ARBITRATION ACT 1996

The five main elements are:

These points will now be developed.

RESPECT FOR THE PARTIES’ FREEDOM OF CONTRACT IN PROCEDURAL MATTERS

The parties’ consensual autonomy (‘freedom of contract’) is a leading feature of the Act (as noted in section 1 of the Arbitration Act 1996 (England and Wales): the parties should be free to agree how their disputes are resolved, subject only to such safeguards as are necessary in the public interest). This freedom enables them to determine, or at least influence, how the repertoire of procedural measures should be applied in their particular case. Parties to arbitration can shape their ‘alternative’ to ordinary court procedure.