Arbitration Act 2025

4 Immunity of arbitrator: resignation

(1) The Arbitration Act 1996 is amended as follows.

(2) In section 25 (resignation of arbitrator)—

(a) in subsection (1), omit paragraph (b) (together with the “and” before it);

(b) for subsections (3) and (4) substitute—

“(3) Where an arbitrator resigns, a relevant person may (upon notice to the other relevant persons) apply to the court to make such order as it thinks fit with respect to the arbitrator’s entitlement (if any) to fees or expenses or the repayment of any fees or expenses already paid.

(4) For the purposes of subsection (3), each of the parties and the arbitrator is a “relevant person”.”;

(c) in the heading, at the end insert “: entitlement to fees or expenses”.

(3) In section 29 (immunity of arbitrator)—

(a) omit subsection (3);

(b) at the end insert—

“(4) An arbitrator’s resignation does not give rise to any liability for the arbitrator unless it is shown that the resignation was, in all the circumstances, unreasonable.

(5) But subsection (4) is subject to—

(a) agreement reached between the parties and the arbitrator as mentioned in section 25(1)(a);

(b) an order made under section 25(3).”

(4) In the following provisions, for “25(3)(b)” substitute “25(3)”—

(a) section 28(4) (joint and several liability of parties to arbitrators for fees and expenses);

(b) section 64(3) (recoverable fees and expenses of arbitrators);

(c) paragraphs 3(2) and 10(2) of Schedule 2 (modifications in relation to judge-arbitrators).