CIArb Welcomes Key Court of Appeal Judgment Concerning Arbitration

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CIArb Welcomes Key Court of Appeal Judgment Concerning Arbitration

The Chartered Institute of Arbitrators (CIArb), the international organisation of excellence for private dispute resolution, welcomes the recent decision by the Court of Appeal confirming that an arbitral tribunal has jurisdiction to hear a case despite allegations that the principal contracts had been procured by bribery. A doctrine known as ‘separability’ separates the arbitration clause in a contract from the contract itself, thereby preserving the tribunal’s jurisdiction to deal with issues impeaching the contract. This is the first time this issue has come before the English courts and it derives from a massive and complex suite of litigation and arbitration relating to a very large alleged fraud on the Russian state-owned shipping company, O.A.O. Sovcomflot.

Commenting, Hew R Dundas, President of The Chartered Institute of Arbitrators, said:
"This decision confirms the proper balance between the arbitral tribunal and the courts, placing the decision-making responsibility in the hands of the arbitrators as the parties had agreed by choosing arbitration. In addition, the decision reflects the principle, inherent in both the Arbitration Act 1996 and the UNCITRAL Model Law and restated by the House of Lords in Lesotho Highlands v Impregilo in 2005, that the courts should become involved in arbitration cases only when necessary. Finally, the decision reinforces London's premier position as the venue of choice for international arbitration given its vast resource of expertise, both legal and arbitral."

Ends-

About The Chartered Institute of Arbitrators

The CIArb is an international centre of excellence for the promotion and facilitation of dispute resolution. Widely regarded as the professional home for all dispute resolvers, CIArb membership supports the professional credibility of more than 11,000 individuals and gives users confidence that the very best individual is helping to resolve their dispute.

In addition to providing education and training for arbitrators, mediators and adjudicators, the CIArb acts as an international resource centre for practitioners, policy makers, academics and those in business concerned with the cost effective and early settlement of disputes.

To find out more, please contact -

Noreen Shah

T +44 (0)20 7421 7434

THE CHARTERED INSTITUTE OF ARBITRATORS

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CIArb Welcomes Key Court of Appeal Judgment Concerning Arbitration

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