Understanding arbitration under the Arbitration Act 1996

What is arbitration?

This Practice Note provides an introduction to arbitration, focusing on its key features, including party autonomy, procedural flexibility in arbitration, choice of seat or forum and arbitrators (the tribunal), privity and confidentiality, separability of the arbitration agreement, and enforcement of awards.

The Practice Note also sets out why these matters are important and gives links to more detailed information in each of the specific areas. While the Practice Note focuses on arbitration under the English Arbitration Act 1996 (arbitration under the AA 1996), the features of arbitration are more widely applicable in ad hoc and institutional arbitration as well as arbitration in other jurisdictions.

For more detail, see Practice Note: Arbitration—an introduction to the key features of arbitration

What is international arbitration?

This Practice Note provides an introduction to international arbitration, setting out what that term is commonly taken to mean. It includes a discussion of the meaning of the word ‘arbitration’ and the term ‘commercial arbitration’. The Practice Note discusses key concepts in international arbitration, including international arbitral institutions, the tribunal, the arbitration agreement and

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Stay of application for injunction in favour of Arbitration (Hunt v IPS Law LLP and Others)

Arbitration analysis: The claimant, Mr Hunt, invested £1.05m in January 2023 through IPS Law LLP (‘IPS Law’), the second defendant, which was meant to hold the funds for the first defendant, Oceania Capital Reserves Ltd (‘Oceania’). IPS Law later apparently transferred the funds, but the circumstances in which that occurred (and the instructions on which IPS Law and its principal, Mr Farnell, the third defendant, relied) were unclear. Mr Hunt applied for an injunction to preserve the funds in IPS Law’s account. The defendants, in return, applied for a stay of the proceedings, arguing that the Investment Agreement between Mr Hunt and Oceania (with IPS Law as the ‘Investment Escrow Party’) referred disputes to arbitration. The court held that IPS Law was not a party to the arbitration clause and could not rely upon it under the Contracts (Rights of Third Parties) Act 1999 (C(RTP)A 1999) (Mr Farnell accepted he was not a party). The court decided, however, that there was a serious issue to be tried in relation to the handling of Mr Hunt’s funds and accordingly granted a proprietary injunction. The case addresses issues over the court’s jurisdiction to order a stay under section 9 of the Arbitration Act 1996 (AA 1996) and its ability to order relief where funds held in a solicitors’ client account have been paid away apparently without instruction. Written by Oliver Browne, partner, at Paul Hastings (Europe) LLP.

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