Arbitration significantly contributes to the UK economy through the legal services sector, estimated to contribute £2.5 billion in fees annually. Therefore, the new act has been introduced to modernise and streamline the process in the UK to ensure that the UK remains a competitive and welcoming arena to arbitrate.
Arbitration is a form of alternative dispute resolution that parties may choose to use as an alternative to going to court. In arbitration, a neutral third party (the arbitrator or tribunal) reviews the cases submitted by each party and gives a binding decision. Generally, the key decisions for choosing arbitration as opposed to court are: it’s held in private, which offers confidentiality, the procedure is flexible compared to the rigid court rules and arguably most importantly, it’s quicker and cheaper than litigation due to its streamlined processes.
Arbitrators are now granted the power to deliver summary judgments on claims with no real prospect of success, aligning arbitration more closely with litigation practices.
Duty of disclosure was previously left largely to case law. The 2025 Act now codifies these principles by requiring arbitrators to disclose any circumstances that might affect their impartiality.
The 2025 Act has now formally recognised the role of emergency arbitrators within the arbitration process, providing clearer rules for their appointment and role in addition to strengthening their position.
The previous wording of the 1996 Act was ambiguous on the law governing arbitration agreements, however, the 2025 Act establishes that arbitration agreements will be governed by the law of the seat unless explicitly agreed otherwise by the parties. Thus, simplifying legal disputes over interpretation.
Further clarity has been provided on procedural efficiency with measures brought in that are intended to streamline processes.
While these changes are designed to modernise the Arbitration Act and to increase the competitiveness of arbitrating in the UK, they are likely to also impact the requirements for expert witnesses as follows:
Arbitrators can now deliver summary judgments for cases with no real prospect of success. However, are the prospects of success based on liability only or liability and quantum. The requirement to hear complex technical issues or quantum evidence may make summary judgment powers more difficult to enforce.
Further requirements for arbitrators to disclose circumstances that impacts impartiality may trickle down to even more stringent requirements for expert witnesses.
The requirement for an expediated appointment might require quicker decisions, requiring expert witnesses to provide their input on a summary or expedited basis.
With continued pressure on ensuring the efficiency of arbitration, the expert witness process may be further spotlighted to streamline and simplify some aspects to ensure that evidence is on scope, concise, and clear.
In summary, these updates are expected to help maintain the UK as an attractive jurisdiction in which to arbitrate. As part of maintaining this attractiveness, they are also likely to change the expectations of professionals involved in arbitration in the UK, including expert witnesses.
The Crowe Forensic Team works on a significant number of forensic cases, ranging in size and complexity. We are always happy to have an initial, no-obligation discussion on any matters where we can add value and provide expert advice. For more information, please contact Alex Houston or your usual Crowe contact.
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