UK: LCIA (The London Court Of International Arbitration) Introduces New Arbitration Rules

Last Updated: 19 December 2014
Article by Jonathan Haydn-Williams

The LCIA's new arbitration rules ("Rules") were introduced on 1 October 2014. They apply to all LCIA arbitrations commenced on or after that date, even if the arbitration agreement (usually found in a clause in a contract) was entered into before that date.

In line with the English tradition of saying one thing and meaning another, The London Court of International Arbitration is not a court. Rather, it is one of several entities, across the world, which administer international arbitrations and, for that purpose, publish arbitration rules which contracting parties may adopt as an alternative to any disputes between them being dealt with by a court with which the contract is connected.

Although LCIA arbitration can be used in disputes within England and Wales, it is aimed at disputes in which the parties come from different countries. The word "international" does not mean that it is limited to disputes between governments or states.

A short introduction to arbitration and a table setting out the respective pros and cons of arbitration and litigation can be found by clicking here.

The Rules are published in a slim booklet of 47 pages. That compares with the English courts' Civil Procedure Rules which run to 3,173 close typed pages. The Rules can also be accessed on the LCIA website

Annexed to the Rules are Recommended Arbitration Clauses, one for inclusion in contracts to cover future disputes and one to be used where there is an existing dispute which the parties wish to refer to LCIA arbitration, rather than commencing court proceedings.

The Rules set out the procedure to be adopted from start to finish, including how to commence an LCIA arbitration, appointment of arbitrator(s) (who are referred to as the "Arbitral Tribunal"), exchange of written submissions, powers of arbitrator(s), presentation of evidence, hearings and the decision ("award") of the Arbitral Tribunal.

New features of the Rules include:

  • The Rules attempt to crack down on arbitrators who are guilty of delay, which has become a problem. Arbitrators now have to certify in advance that they have enough time to devote to the case and are liable to be side-lined or removed if guilty of delay.
  • There are provisions for Expedited Formation of an Arbitral Tribunal (in the event of "exceptional urgency") and appointment of an Emergency Arbitrator (in case of "emergency" prior to the formation of the Arbitral Tribunal). The LCIA's application fee for the appointment of an Emergency Arbitrator is £8,000 and the initial (and non-refundable) fee of an Emergency Arbitrator, if appointed, is £20,000. Hence, applications for such an appointment are likely to be rare.
  • Under the new fees schedule, in the case of an ordinary arbitration the LCIA's administrative charges are £1,750, plus 5% of the Arbitrators' fees and expenses, an hourly charge for LCIA time and reimbursement of LCIA expenses. The Arbitral Tribunal's fees are to be at an hourly rate (for each arbitrator) of not more than £450, save that in exceptional cases higher hourly rates may be charged with the agreement of all parties. The Arbitral Tribunal may comprise one or three arbitrators (or in exceptional cases, more than three).
  • The law applicable to the arbitration agreement and the arbitration is specified as that applicable at the seat (i.e. location) of the arbitration, unless otherwise agreed in writing or unless prohibited by the law of the seat. This is in line with the current approach of the English courts to the choice of law. The English courts' approach used to be that, in the absence of express choice, the law of the arbitration agreement and of the arbitration would be the same as the law applicable to the substance of the contract (which may be different from the law of the seat). Under the Rules, if, for example, a contract governed substantively by Brazilian law provided for LCIA arbitration with its seat (location) in London, the meaning of the arbitration clause in the contract and the workings of the arbitration would be governed by English arbitration law. That makes sense, as any issue or challenge as to the conduct of the arbitration would therefore be decided by the English courts, i.e. at the same location as the arbitration, rather than having to be referred to the courts of Brazil.
  • There has been dissatisfaction within the international arbitration "community" about the conduct of some legal representatives. The Rules provide that each party must ensure that all its legal representatives appearing by name before the Arbitral Tribunal have agreed to comply with general guidelines as to conduct set out in the Annex to the Rules. These provide, for example, that a legal representative should not knowingly conceal or assist in the concealment of any document (or any part thereof) which is ordered to be produced by the Arbitral Tribunal. There is provision for an opposing party to complain about another party's legal representative's conduct, for the Arbitral Tribunal to look into the matter and, if the complaint is upheld, for it to sanction the legal representative by means of a written reprimand or some other unspecified sanction. One can see, however, that the cure could become worse than the complaint, as it is not unusual for parties to feel antagonistic to the opposing party's lawyers and complaints to Arbitral Tribunals could abound.

By attempting to provide solutions to problems that have been experienced in practice over recent years, the LCIA is aiming to maintain, or increase, the attraction of its international arbitration "offering", not just as an alternative to the courts, but also in competition with other entities which offer an international arbitration service in different parts of the globe.

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.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.