AA 1996—extension of time for commencing arbitration (s 12)
Produced in partnership with Farrer & Co
Practice notesAA 1996—extension of time for commencing arbitration (s 12)
Produced in partnership with Farrer & Co
Practice notesThe Arbitration Act 1996 (AA 1996) provides a mechanism for parties who wish to commence arbitration but cannot do so within a contractually agreed time period (for whatever reason) to apply to the English, Welsh and Northern Irish (English and England are used throughout) court for an extension of time.
The terms of AA 1996, s 12 set high hurdles. English courts will not, grant an extension of time lightly. The AA 1996 gave full effect to the notion of party autonomy and abandoned the idea that the courts enjoyed some general power of supervisory jurisdiction over arbitrations (Haven Insurance v EUI (t/a Elephant Insurance)).
Extension of contractual time limit—AA 1996, s 12
AA 1996, s 12(1) provides that where an arbitration agreement covering ‘future disputes’ provides a time limit for taking ‘some step…to begin’ proceedings—whether this is by commencing the arbitration or by way of a contractual pre-arbitration alternative dispute resolution mechanism, such as mandatory negotiation or mediation, the court may extend the time for taking that step (note that this
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