International arbitration – which system of law applies?

Steven carey bw 2017

A recent Supreme Court ruling clarifies how to determine which country’s legal system should apply to an arbitration under an international construction contract

International construction contracts commonly provide for arbitration as the dispute resolution mechanism. Arbitration is perceived as potentially allowing for a tribunal with more industry expertise (and potentially more independence) than the local courts.

But which system of law governs the arbitration agreement, in particular, its validity and scope? The Supreme Court’s recent decision in Enka vs Chubb has brought some certainty in English law on this tricky question.

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