12/2/2020
On October 1st, updates to the London Court of International Arbitration (LCIA) Arbitration Rules came into effect. Published on August 11st, 2020, the new rules modernize and innovate some practices of the Court, which is considered the oldest Arbitral Tribunal in the world. The rules that regulate the arbitration procedures administered by LCIA have not changed since 2014.
Although the pandemic caused by COVID-19 delayed this update, the scenario imposed by the pandemic influenced LCIA to include, from now on, technological measures to optimize the conduct of procedures, such as holding virtual hearings. Also noteworthy are the forecasts expressed in relation to data protection practices, agility in procedures and regulatory issues.
Following an international trend, electronic communication tools were adopted as essential to all Court procedures. Another measure that guarantees even more efficiency is the reduction of some procedural deadlines, allowing greater speed in resolving cases.
The new rules also changed the requirements for the constitution of the Arbitral Tribunal: taking into account the existing rule regarding the obligation of distinct nationality between the Unique Arbitrator – or the President of the Arbitral Tribunal – and the parties, it is now necessary, at the beginning of the procedure, for each party to identify its nationality.
In relation to the Arbitration Requirement, LCIA now allows a single application to initiate more than one procedure, whether it based on the same arbitration agreement or not. Likewise, the Arbitrators can decide to merge procedures derived from the same or related businesses, which previously was only possible if the parties were the same.
In addition, LCIA innovated by creating forecasts explaining the possibility of appointing the Secretary of the Arbitral Tribunal and defining its functions. The Secretary must be impartial and independent and will depend on the approval of the Parties to act.
Another point is the increase in the ceiling on referee fees, which has gone from £ 450 to a new maximum of £ 500 per hour. It is up to LCIA, however, to set the hourly rate for Arbitrators, depending on the complexity of the case.
The main changes to the regulations are detailed in these podcasts that the Court has prepared. Our Arbitration team follows the changes and remains available to assist in arbitration proceedings.
