Arbitration agreements - wording required to exclude a right of appeal on a point of law

A recent decision in the Commercial Court considered the extent to which the words "final, conclusive and binding" can be construed as excluding a right of appeal on a point of law under section 69 of the Arbitration Act 1996 ("the 1996 Act").

Section 69(1) of the 1996 Act provides that:

"Unless otherwise agreed by the parties, a party to arbitral proceedings may (upon notice to the other parties and to the tribunal) appeal to the court on a question of law arising out of an award made in the proceedings."

Mrs Justice Gloster, in her judgment in Shell Egypt West Manzala GmbH v Dana Gas Egypt Limited, agreed with Mr Justice Ramsey's stance in Essex County Council v Premier Recycling Ltd that the words "final and binding" are not sufficient to exclude a right of appeal on a point of law. Her judgment reinforces the need for parties to use clear and unequivocal drafting in their arbitration agreements when seeking to exclude a right of appeal.

Wragge & Co's experts provide further guidance following this decision.