By Alistair Abbott, partner
The BVI Arbitration Act 2013 came into force on 1 October 2014. The Act provides the BVI with a modern legislative framework for arbitration matters and represents the culmination of a number of steps the BVI has taken to make itself a more “arbitration-friendly” jurisdiction. Earlier this year it became a contracting state for the purposes of the New York Convention (“NYC”).
The Act is based on the UNCITRAL Model Law (with only relatively minor modifications) and provides for the establishment of the BVI International Arbitration Centre to provide administrative support for arbitrations. It also provides for enforcement of arbitral awards and confers a number of powers on the BVI Courts to render assistance in support of arbitration proceedings.
There was already a trend in the case-law towards a more arbitration-friendly environment, with the BVI Courts taking a robust approach to staying proceedings in favour of arbitration (e.g. Artemis Trustees v KBV Partners LP (2013) BVIHC(Com) 137 of 2012) and also to enforcement of arbitration awards (Belport Developments Ltd v Chimichanga Corporation (2014) BVIHC(Com) 102 of 2013).
Articles of Association of BVI Companies not infrequently contain provision for disputes to be resolved by arbitration, so the adoption of the new Act is welcome and may well result in a rise in the number of BVI arbitrations.
The fact that the BVI is now a contracting state for NYC purposes means that any such awards will be enforceable in other NYC states. Inwards enforcement of arbitral awards obtained in other NYC states was already possible under BVI law and such awards were enforceable by means of a simple application to obtain recognition of the award, following which it became enforceable as a judgment of the Court. Following the entry into force of the Act, the process is now even more straightforward: section 85 of the Act provides for enforcement to follow on production of suitable documentation (the duly authenticated original award or certified copy, the original arbitration agreement or certified copy and an official translation of such documents where appropriate).
The wide-ranging powers conferred on the Courts to provide assistance in favour of arbitration proceedings are also welcome. Many international arbitrations involve BVI companies and it is important that the Courts be able to render effective support and grant ancillary relief where appropriate.
