Commercial Arbitration Bill 2012 (Qld) – A change for the better?

Introduction

The Commercial Arbitration Bill 2012 (Qld) (Arbitration Bill) amends the Commercial Arbitration Act 1990 (Qld) (Arbitration Act) and includes additional provisions which supplement the UNCITRAL Model Law for domestic commercial arbitration and was introduced into the Legislative Assembly on 30 October 2012. The Arbitration Bill has been referred to the Legal Affairs and Community Safety Committee for comment. A response is expected by 4 February 2013.

The Arbitration Bill is based on the UNCITRAL Model Law and is aligned with the Commonwealth International Arbitration Act 1974 (Commonwealth Act). It has been developed out of the Standing Committee of Attorneys-General's proposal in 2010 for a nationally-adopted framework for domestic commercial arbitration in Australia. The introduction of the Arbitration Bill represents another important step towards a uniform Australia-wide legislative regime.

The Arbitration Bill provides a number of features that attempt to ensure that disputes are resolved in a cost effective manner, informally and quickly.

The following is a summary of some of the key differences between the Arbitration Act and the new additions which are being introduced in the Arbitration Bill.

Relevant sections of the Arbitration Bill

Section 1AC

One of the primary objectives of Arbitration Bill as it is with the UNCITRAL Model Law, is to provide arbitration procedures that enable commercial disputes to be resolved in a cost effective manner, informally and quickly. Section 1AC represents what some commentators have described as the single most significant change to the domestic commercial arbitration regime.1

The changes introduced in section 1AC of the Arbitration Bill are aimed at ensuring that arbitration in Queensland is an efficient, cost-effective alternative to litigation. The Arbitration Bill aims to achieve this objective by:

enabling parties to agree how their commercial disputes are to be resolved; and providing arbitration procedures that enable commercial disputes to be resolved in a cost-effective manner, informally an quickly. This section is a reminder that one of the main advantages of commercial arbitration, in the domestic context, is the ability of parties and arbitrators to tailor arbitration procedures for the most efficient resolution of the dispute.

Parties may have a preference for an arbitration that is as formal as court proceedings or for something that is relatively inexpensive and quick.

There is often difficulty when the parties have varying views of where on the line between theses two extremes the arbitration should sit. Parties may also have differing expectations to that of the arbitrator, and, as can often be the case, those expectations may sit outside the realms of...