NEW RULES OF LONDON ARBITRATION
NEW RULES OF LONDON ARBITRATION
On October 1, 2020, new Rules of the London Court of International Arbitration (LCIA) entered into force, replacing the previous version of LCIA Arbitration Rules 2014. The new Rules apply to all arbitration proceedings initiated at LCIA since October 1, 2020, regardless the date of arbitration agreement.
Such amendments reflect LCIA best practice and represent an attempt to bring the Rules in line with today trends in international arbitration. Key changes whereto arbitrators should pay special attention are set below.
With regards to necessary development of the online work format due to COVID-19 pandemic, LCIA Arbitration Rules 2020 confirm the priority of email communications in the framework of LCIA arbitration proceedings, facilitate virtual and combined hearings by means of new technologies, jointly with signing arbitration awards by means of electronic digital signature.
Although arbitration proceedings by means of email correspondence is not new for LCIA, however, in view of recent innovations, it is expected that now proceedings will have electronic form a priori, while the parties will receive arbitration awards much faster.
However, in order to avoid the risk of subsequent appeal against arbitration award, we recommend the parties to keep caution in allowing use of electronic digital signatures and other technologies in countries where subsequent enforcement of arbitration award is possible.
New LCIA Arbitration Rules 2020 grant to arbitral tribunal the power to make awards on premature rejection of claims / statements of defense, being obviously unjustified, inadmissible, or clearly beyond the jurisdiction of arbitral tribunal.
It facilitates rejection of claims at an early stage, when it is obvious that the claim or objections are unsubstantiated, so it may save time and money for the parties concerned in such arbitration proceedings.
Short arbitration proceedings
LCIA Arbitration Rules 2020 have tightened the terms of arbitration proceedings. LCIA tribunal now has 28 days instead of 35 to appoint an arbitral tribunal, while the latter should endeavor to issue a final award within three months.
Consolidated arbitration proceedings
LCIA Arbitration Rules 2020 expand the powers of arbitrators in order to consolidate multiple arbitration proceedings initiated under the same arbitration agreement or any compatible agreement, arising from the same transaction or series of related transactions.
The latter aspect may have particular concern for the parties who conclude a series of identical or similar transactions with the same parties, since it gives them an opportunity to consolidate disputes under different contracts into single arbitration proceedings.
Since LCIA Arbitration Rules 2020 are quite new, it is wort to see how they will apply in practice. However, in general, the above amendments should contribute to increase in efficiency and responsiveness of LCIA arbitration, as compared to other arbitration institutions.
- 500 thousand USD for cargo deterioration2017.01.11
Task The Client, cargo owner who incurred losses amounting to ca. 500,000 USD due to cargo deterioration during sea carriage, applied...
- Attachment of assets of non-residents during the enforcement of decisions and awards in Ukraine2017.07.13
Active participation in international trade envisages a variety of risks, on the most essential of which is the likelihood of non-performanc...