Arbitration in England and Wales: An Overview

England and Wales operate under a common law system, which influences the arbitration process. This means that the legal principles and precedents established by previous court decisions play a significant role in shaping the arbitration landscape.

The Arbitration Acts respect the principle of party autonomy, allowing parties to make their own arrangements by agreement. Most provisions are non-mandatory, giving parties the flexibility to tailor the arbitration process to their specific needs. However, certain provisions related to public interest, such as challenges to awards and the enforcement of awards, are mandatory.

Procedural rules around evidence arise from common law principles and, while not directly applicable to arbitration, the Civil Procedure Rules ("CPR"). There is a general duty on disputing parties to disclose relevant documents. In recent years, the Business and Property Courts have adopted a proportional, issue-based regime that promotes transparency and early resolution, and best practice guidance is often taken from there (Practice Direction 57AD). Arbitrations in England and Wales favour the use of Redfern Schedules and apply the English common law standard of relevance.

Witness evidence is commonly relied upon in English-seated arbitrations, although its weight has lessened over the years due to a focus on the frailty of human memory and a general abundance of documentary evidence. Expert evidence is also a key feature, with experts required to be independent and provide honest opinions within their expertise. Courts may order single joint experts or hear oral evidence from both experts concurrently.

An arbitral award made in England and Wales is enforceable and binding on the parties. The principle of res judicata prevents parties from bringing a further action on the same facts. To enforce an arbitral award, the judgment creditor must apply to the English courts for an order. The general limitation period for enforcement is six years from the date the cause of action accrued. The English courts are generally pro-arbitration and support the enforcement of arbitral awards.

Appeals of arbitral awards are generally only available on a point of law, and this provision is non-mandatory, meaning parties can contract out of it. Parties can appeal to an English court, which has the discretion to remedy a tribunal's finding that is "obviously wrong" or "open to serious doubt." Challenges to arbitral awards can be made on the grounds of lack of substantive jurisdiction or serious irregularity, but such applications are rarely allowed in practice.