PACT—Professional Arbitration on Court Terms

The following Property Disputes practice note provides comprehensive and up to date legal information covering:

  • PACT—Professional Arbitration on Court Terms
  • Aims of PACT
  • Appointing the third party
  • Which type of PACT referral?
  • Pre-issue PACT
  • Post-issue PACT
  • What issues can be determined
  • Arbitrator or independent expert?
  • Fees
  • Advantages and tactical considerations
  • More...

PACT—Professional Arbitration on Court Terms

Professional Arbitration on Court Terms (PACT) is a joint initiative introduced in 1997 by the Royal Institution of Chartered Surveyors (RICS) and the Law Society as a form of alternative dispute resolution (ADR) for Landlord and Tenant Act 1954 (LTA 1954) lease renewal disputes (see: Surveyors and Lawyers Involved in Tenancy Renewals Under PACT—2nd Edition Guidance Note (the PACT Guidance Note)). PACT provides landlords and tenants with an alternative way to resolve outstanding issues on a lease renewal without them being decided by a court (for more information regarding lease renewals, see Practice Notes: LTA 1954 business lease renewal—proceedings and LTA 1954 business lease renewal—termination).

Outstanding issues in dispute are, with the consent of both parties, referred to an independent third party, acting as an arbitrator or independent expert and their decision is binding (subject to appeal).

Aims of PACT

PACT was first introduced to offer a viable alternative dispute resolution mechanism for lease renewal disputes. It was considered to be a cost effective way of resolving one or more outstanding issues in a lease renewal without the need to involve the court.

Appointing the third party

Both parties must agree:

  1. that the dispute should be referred to PACT, and

  2. which points need to be determined

The parties then decide whether the PACT appointee is to act as expert or arbitrator. It

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