The London Court of International Arbitration (“LCIA”) has published new arbitration rules that come into force on October 1, 2014. These rule revisions follow similar initiatives by the Arbitration Court of the International Chamber of Commerce (“ICC”) which adopted new rules in 2012. Neither institution had made substantive changes to its rules since the 1990s. In 2010, the UN Commission on International Trade Law (“UNCITRAL”) approved new rules for use in ad hoc arbitrations, the first such major revisions since the 1970s.

These changes demonstrate a positive reaction to perceived inadequacies in the international arbitration system which were driving dissatisfied users of international arbitration services to alternative institutions offering more responsive and modern rules. Two particular problem areas in contemporary practice that were not well addressed in existing arbitration rules were multi-party/multi-contract disputes and delay in obtaining urgent relief.

The first concern arises out of modern commercial practice. Frequently, contracts are not concluded in isolation, but as part of a “suite” of related agreements. For example, one or more layers of holding company or special purpose vehicle may be interposed between the commercial parties, involving multiple different, but related, agreements involving numerous parties. Although the existing LCIA rules already permitted the joinder of an additional party to an arbitration, the rules were not clear insituations where claims and cross-claims arose between the same or related parties, but under different contracts each having an arbitration agreement. It is obviously most efficient to consolidate such claims into a single arbitration proceeding to resolve all issues between all parties in a single enforceable award. The new LCIA rules now explicitly address powers of consolidation.

The addition of an “Emergency Arbitrator” procedure reflects widespread concern amongst arbitration users that the process can be too slow to meet urgent situations. This is addressed in two ways. Firstly, a new rule permits the LCIA, on application of a party justified by urgent circumstances, to expedite the formation of the Arbitral Tribunal and, where necessary, abridge any time periods provided for in the arbitration agreement. Secondly, a party can apply before the constitution of the Arbitral Tribunal for the appointment of an emergency sole arbitrator to consider an application for urgent relief. Where the request is approved, the arbitrator is to be appointed within 3 days, with his decision to be rendered in writing, with reasons, within 14 days.

The modernisation of the LCIA rules will hopefully redress some of the deficiencies identified by users. It remains to be seen whether these changes will be replicated by LCIA India, which operates separate rules. A greater homogeneity in procedures narrows the competitive gap between rival institutional service providers. The international business community has the pick of many highly reputable international arbitration institutions, without having to forego recent innovations.