After section 39 of the Arbitration Act 1996 insert—
(1)Unless the parties otherwise agree, the arbitral tribunal may, on an application made by a party to the proceedings (upon notice to the other parties), make an award on a summary basis in relation to a claim, or a particular issue arising in a claim, if the tribunal considers that—
(a)a party has no real prospect of succeeding on the claim or issue, or
(b)a party has no real prospect of succeeding in the defence of the claim or issue.
(2)For the purposes of subsection (1), an arbitral tribunal makes an award “on a summary basis” in relation to a claim or issue if the tribunal has exercised its power under section 34(1) (to decide all procedural and evidential matters) with a view to expediting the proceedings on the claim or issue.
(3)Before exercising its power under section 34(1) as mentioned in subsection (2), an arbitral tribunal must afford the parties a reasonable opportunity to make representations to the tribunal.”
(1)The Arbitration Act 1996 is amended as follows.
(2)After section 41 insert—
(1)This section applies where—
(a)the parties have agreed to the application of rules that provide for the appointment of an individual as an emergency arbitrator, and
(b)an emergency arbitrator has been appointed pursuant to those rules.
(2)Unless otherwise agreed by the parties, if without showing sufficient cause a party fails to comply with any order or directions of the emergency arbitrator, the emergency arbitrator may make a peremptory order to the same effect, prescribing such time for compliance with it as the emergency arbitrator considers appropriate.”
(3)In section 41(7) (peremptory orders of tribunal), in the opening words—
(a)after “peremptory order” insert “of the tribunal”;
(b)omit “tribunal’s”.
(4)In section 42 (enforcement of peremptory orders of tribunal)—
(a)in subsection (1), at the end insert “or (as the case may be) the emergency arbitrator”;
(b)in subsection (2)(a) and (b), after “the tribunal” insert “or the emergency arbitrator”;
(c)in subsection (3), for “tribunal’s order” substitute “peremptory order”;
(d)in subsection (4), for “tribunal’s order” substitute “peremptory order”;
(e)in the heading, at the end insert “or emergency arbitrator”.
(5)In section 44 (court powers exercisable in support of arbitral proceedings)—
(a)for subsection (4) substitute—
“(4)If the case is not one of urgency, the court may act only on the application of a party to the arbitral proceedings made with—
(a)the permission of the tribunal or (as the case may be) the emergency arbitrator, or
(b)the agreement in writing of the other parties.
(4A)An application under subsection (4) may be made only upon notice to the other parties and to the tribunal or the emergency arbitrator.”;
(b)in subsection (5), after “tribunal” insert “or the emergency arbitrator”;
(c)in subsection (6), after “tribunal” insert “, the emergency arbitrator”.
(6)In section 82(1) (minor definitions)—
(a)after the definition of “dispute” insert—
(b)in the definition of “peremptory order”, after “section 41(5)” insert “or 41A(2),”.
(7)In section 83 (index of defined expressions), after the entry for “dispute” insert—
(1)Section 44 of the Arbitration Act 1996 (court powers exercisable in support of arbitral proceedings) is amended as follows.
(2)In subsection (1), after “making orders” insert “(whether in relation to a party or any other person)”.
(3)For subsection (7) substitute—
“(6A)Subject to subsection (7), an appeal lies from a decision of the court under this section.
(7)The leave of the court is required for any such appeal by a party or proposed party to the arbitral proceedings.”