Q&As

Can a party treat an arbitral award as non-binding? What is the status of an arbitration agreement that states that the award is to be non-binding?

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Published on LexisPSL on 19/03/2018

The following Arbitration Q&A provides comprehensive and up to date legal information covering:

  • Can a party treat an arbitral award as non-binding? What is the status of an arbitration agreement that states that the award is to be non-binding?
  • Effect of an arbitral award
  • What if agreement was for advisory decision and not arbitration?
  • Early Neutral Evaluation
  • Expert determination

This Q&A refers to a final award and that the arbitration is seated in England & Wales and governed by the Arbitration Act 1996.

Effect of an arbitral award

Section 58 of the Arbitration Act 1996 (AA 1996) states that:

‘(1) Unless otherwise agreed by the parties, an award made by the tribunal pursuant to an arbitration agreement is final and binding both on the parties and on any persons claiming through or under them.

(2) This does not affect the right of a person to challenge the award by any available arbitral process of appeal or review or in accordance with the provisions of this Part.’

The effect of the above is that unless otherwise agreed by the parties, an arbitral award made pursuant to an arbitration agreement is final and binding both on the parties to that agreement and on any parties claiming through or under them, including assignees. See Practice Note: Arbitral awards—types and requirements.

If the parties agree that the award is not final and binding, they a

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