International arbitration

Written by Ana Margetts and Tom Scanlon

Key developments in 2024

The Arbitration Bill and Anti-suit Injunctions

The Arbitration Bill received its first and second readings in parliament in July 2024. Having first come before parliament in September 2023 under the UK's then Conservative government, it will once again proceed through the House of Lords and House of Commons, before receiving Royal Assent and becoming law. 

A key point arising out of the Arbitration Bill is anti-suit injunctions (ASIs), which frequently arise in the context of maritime insurance policies. The purpose of an ASI is to restrain foreign proceedings when the parties have a valid arbitration agreement under English law. A Brexit benefit was the restoration of the power of English courts to grant ASIs within the EU, restraining the pursuit of EU proceedings in breach of an arbitration clause. 

This year saw the Supreme Court in UniCredit Bank GmbH v RusChemAlliance reaffirm the willingness of the English courts to grant ASIs, even where the arbitration is seated in a foreign jurisdiction. In UniCredit, the English court granted an ASI restraining Russian proceedings in circumstances where: (i) the ICC arbitration was seated in Paris (meaning that French law governed the arbitration procedure); and (ii) English law governed the arbitration agreement.

Under section 6A of the Arbitration Bill however, the opportunity for parties in foreign seated arbitrations to obtain such relief from the English courts will be curtailed if there is no express agreement regarding the law governing the arbitration agreement. In these circumstances, the arbitration agreement will be governed by the law of the foreign seat by default. 

Insurers may therefore wish to make express provision for the law of an arbitration agreement if they do not want to be subject to the proposed default provision under section 6A. Importantly, the choice of law provision in an arbitration agreement is distinct that of the main or “host" contract, which is treated as a separate agreement even if it is contained in the same document.

What to look out for in 2025 

Report of the ICC Commission taskforce on corruption 

Following consultation, the Arbitration Bill is notably silent on the issue of corruption in the arbitral process. This is striking in the wake of the Nigeria v P&ID case in late 2023, which saw the overturning of two arbitration awards worth over USD $11 billion. The Federal Republic of Nigeria successfully brought a challenge under s. 68(2)(g) of the Arbitration Act 1996 on the ground of "serious irregularity", arguing that the awards were obtained by fraud and contrary to public policy. 

In overturning the awards, Mr Justice Knowles called for further attention on the issue of corruption, warning that the case "touches the reputation of arbitration as a dispute resolution process".

Looking ahead to 2025, the ICC Commission on Arbitration and ADR's taskforce on corruption will publish its full report on "Red Flags or Other Indicators of Corruption in International Arbitration", including in relation to the role and responsibilities of the arbitral tribunal.

Explore Annual Insurance Review 2025