TheCityUK* has produced an analysis of the dispute resolution
market in London, with a particular focus on arbitration and ADR.
Its report – "
Dispute Resolution in London & the UK 2010"
– provides a detailed assessment of the city's
dispute resolution capabilities, statistics on referrals to
London-based dispute resolution centres, and the market's
The London attraction
The report paints a positive picture of the dispute resolution
market in London, with significant growth seen across all
institutions. The long-term growth in international dispute
resolution is linked to an increase in cross-border transactions
from which disputes originate, with more recent growth attributed
to the difficult economic climate. The Commercial Court saw the
highest number of claim forms issued since the Woolf reforms to
civil procedure in 1999. The international nature of London dispute
resolution is evident from the fact that 75 per cent of those
actions involved at least one foreign party. In roughly one-half of
cases, the only link to the UK is the parties' choice of London
for dispute resolution.
What is the attraction of London? The report points to a number
of key factors, including the arbitration friendly framework
provided by the Arbitration Act 1996 and the courts' freedom
from political influence, supported by an impartial judiciary. A
depth of expertise in relation to complex cases was also cited,
from specialist institutions to individual arbitrators, mediators
and experts, together with international law firms and barristers
able to provide specialist advice and advocacy. London is also seen
as a venue offering flexibility in procedures offered by different
institutions, as well as party autonomy in language and law.
Confidentiality in arbitration proceedings is implied by law.
The London Court of International Arbitration
(LCIA) has seen a rapid increase in the number of
disputes referred to it in recent years, doubling from 137 in 2007
to 285 in 2009. Over 90 per cent of these disputes are
international, even though most are seated in London.
The IC International Court of Arbitration (IC)
also saw a significant increase in cases filed, rising from 599 in
2007 to 817 in 2009. The largest number of IC arbitrations was
conducted in Paris where the institution is based (113), but London
was the second most popular venue (73). The quality of London
arbitrators was confirmed in the appointment statistics for IC
arbitrations – Swiss and English arbitrators topped the
list, each with 22 per cent of all IC appointments. Germany, the
USA and France followed, with 8 per cent each of appointed
A significant growth in referrals to arbitration was reported by
the London Maritime Arbitrators Association
(LMAA). Individual appointments rose by 38 per
cent – from 2,673 in 2007 to 4,326 in 2009.
The International Centre for the Settlement of Disputes
(ICSID) has seen a four-fold increase in disputes
between states and investors since 2000. London is a key venue for
tribunals, holding the highest number of merits hearings after
Paris and Washington in 2009.
As we reported in our
last issue (September 2010), mediations are also on the rise,
with the Centre for Effective Dispute Resolution
(CEDR) reporting that approximately 6,000 civil
and commercial mediations a year are now conducted in the UK. This
is almost double the number reported for 2007.
There is much for London to celebrate in this report, but
competition from both established and emerging international
arbitration centres remains fierce.
* TheCityUK is an independent body established with the support
of the City of London Corporation (in consultation with government
and industry) for promoting the UK-based financial and professional
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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This was an interlocutory decision about the appointment of a tutor for the child appellant, to carry on his proceedings.
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