SCIADelivering arbitration and dispute resolution on a world class scale
Scottish
Council for International Arbitration SCIA
Delivering
arbitration and dispute resolution on a world class scale
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| Amongst
the trading nations of the world, Scotland is almost unique in
one significant aspect of its international and commercial law.
In this instance, that uniqueness is a serious omission. Scotland
does not have a coherent, accessible and easily understood system
of arbitration law. It is impenetrable and inaccessible, buried
in old statutes and in long out of date court decisions, many
of them from the nineteenth century and earlier. Recognising this, the Scottish Council for International Arbitration (SCIA) and the Chartered Institute of Arbitrators (CIArb) produced a new Code for use in commercial arbitrations in 1999. It has proved popular, and work has begun on a revised edition in the light of current practice. However, Scotland needs a new Arbitration Act to provide legislative backing to this essential tool for commercial dispute resolution. In 1990, Scotland adopted the United Nations UNCITRAL Model Law for international commercial arbitration. This was an important step, but it does not deal with all aspects of arbitration and does not affect domestic arbitration. To move matters forward to prepare a new Arbitration Bill for Scotland, a Joint Working Group has been set up by the two organisations, SCIA and the CIArb. The Working Group is to be drawn from a wide range of representatives in the Scottish business, commercial and legal communities. The Group is chaired by Lord Dervaird, the primary author of the 1999 Code. He also chaired the Scottish Advisory Committee on Arbitration Law that reported to government on the form of Arbitration Law in 1996. Arbitration is a legally binding process of dispute resolution that can avoid the need to resort to the Courts. New Arbitration Acts exist in England and Ireland. All commercially developed countries in Europe, the US and Canada, most South American countries, and the commercial communities of the Middle and Far East have statutes covering arbitration. No such modern statute exists in Scotland. Scotland's current law on arbitration dates back to the 1600s and a number of other elderly statutes. Arbitration law, in its current state makes it difficult for most people, even lawyers, to understand the process and procedures. While the Scottish Arbitration Code goes a long way to remedy this, there is a recognised need, amongst both the commercial and legal communities in Scotland, for a modern Act that defines the process and rules of Arbitration. Since devolution and the establishment of the Scottish Assembly, the subject of a new Arbitration Bill for Scotland has become a matter for the devolved Assembly. The need for a new Scottish Arbitration Bill is compelling. Disputes referred to Arbitration are a private matter between the parties. This means that the burden of work on the Courts can be reduced. Costs do not impinge on the public purse, and the parties to a dispute pay for the Arbiter, who should be technically qualified in the subject matter. Resolution of disputes can be speedier; since there is no waiting for Court time, and importantly for many companies, they can be resolved in private. Government resources are scarce and the current legislative programme of the Scottish Assembly is already substantial. The Joint Working Group aims to assist to move Scotland's arbitration law into the twenty first century with a view to promoting a Private Member's Bill after a wide ranging process of consultation with contributory bodies. |