Queensland: Commercial Arbitration overhaul in sight

Much anticipated commercial arbitration reform in Queensland is in sight with the recent passing of the Commercial Arbitration Bill 2012 (Qld) (the 2012 Bill) through the Queensland Parliament. The 2012 Bill was reintroduced after a previous Bill, The Commercial Arbitration Bill 2011 (Qld) lapsed in early 2012 with the prorogation of the state government.

The new legislation will replace the existing Commercial Arbitration Act 1990 (Qld) and bring Queensland in step with most other States. In a recent statement, Attorney-General Jarrod Bleijie commented that the 2012 Bill would make commercial arbitration a more attractive choice for businesses embroiled in disputes.

“It is in the interest of all parties, where possible, that matters are resolved without the need for court proceedings and exorbitant litigation costs….concerns were raised the process had become too litigious and the Standing Council of Attorneys-General decided last year to adopt a model Bill in line with United Nations law.”

Mr Bleijie said the amendments would be welcome news for business, which would have the opportunity to resolve differences without resorting to lawsuits.
“This model allows for disputes to be resolved with the assistance of an impartial arbitrator, leading to fair and final resolutions without unnecessary delay or expense,” he said.
“There was strong backing from industry for these amendments and there was also significant interest from Asia in seeing these reforms adopted in Queensland.”

In an effort to re-capture the cost benefits and expediency of arbitration the new legislation unequivocally instructs parties to a dispute to take action to avoid unnecessary delay or expense. A key provision of the 2012 Bill, section 24B, expressly imposes a duty to parties to an arbitration to ‘do all things necessary for the proper and expeditious conduct of the arbitral proceedings’.

Apart from section 24B, the new commercial arbitration legislation is closely aligned with the Model Commercial Arbitration Bill adopted by the Standing Committee of the Attorneys-General in 2009. The Model Bill, proposed as a uniform piece of legislation to be enacted by the states and territories, intends to harmonise arbitration across Australian jurisdictions. The Model Bill mirrors international best practice by adopting the provisions of the UNCITRAL Model Law on International Commercial Arbitration, last revised in 2006.

The Bill and the Explanatory Notes are available here.
 

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