Arbitration law updated
The Arbitration Amendment Bill passed its third reading on 1 May 2019, the final step before it is made law.
The Bill’s amendments, which gained cross-party support, close a loophole that previously allowed participants to get a result and then make a surprise and untimely challenge to the award on the basis of jurisdiction.
The new law also ensures one party or another cannot game the system to get the arbitrator they want.
Speaking on the Bill last night, Bill sponsor, Andrew Bayly MP commended the Bill to the House saying, “Arbitration is a very cost-effective and timely method of resolving commercial and other disputes.”
Leaving the door open for future developments, the Chair of the Justice Select Committee Mr. Raymond Huo MP commented, “Let's not regard the third reading of this bill as the end of this conversation. Rather, we should regard this third reading debate as a beginning of many thought-provoking discussions about good ideas of how to promote New Zealand as a business-friendly destination for international commercial arbitration hearings. So my message to the sector is let's work together.”
There are 3 amendments:
1.Clarification of jurisdictional challenges;
2.Clarification of the setting aside and enforcement provisions; and
3.Removal of the quick draw provision for the appointment of the arbitral tribunal.
To read the Bill, click HERE.
To read Hansard, click HERE.
AMINZ is providing a webinar with Nicole Smith on the amendments on Thursday, 30 May at 2 pm. To find out more or to register, click HERE.
To find out more about the amendments, click HERE