Arbitrator can determine the proper law

Arbitrator can determine the proper law Disclaimer: This work has been submitted by a student. This is not an example of the work produced by our Law Essay Writing Service . You can view samples of our professional work here . Arbitrator can determine the proper law The significance of the international arbitration is that one of the foreign legal system and a foreign country is involved, thus they have the ease to affect the deal with the procedural rules and the legal issues of the dispute, it also has a bearing on the cost, the obtaining of the evidence and enforcing an award in a country which may be different from that of the dispute.   [ 1 ]   The question that needs to be in mind while resolving a dispute is that what will be the principles for establishing, which applicable laws will be applied to the arbitration.   [ 2 ]    S (46) (3) of the Arbitration Act 1996   [ 3 ]   , â€Å"is concerned with the situation in which there is no express choice of law, and here the arbitrators are empowered to determine the conflict of laws rules which should apply, and then to apply those conflict of laws rules to decide which law should apply to the contract.†Ã‚   [ 4 ]   The question t hat arises is that the choice suggested by the arbitrator of the applicable rules is that correct and secondly is its application a correct. It is however stated that if the arbitrator has to decide under the English court jurisdiction then the English law would be applicable under the Rome Convention 1980   [ 5 ]   and is therefore stated that if it is not decided with certainty then the that law is decided to which the contract is most closely connected to.   [ 6 ]    In an submission to an agreement it is important to choose the relevant laws that will be applicable in an agreement because if they are expressly stated then in that way they are substantive issues to the disputes and its always better to draft them in a submission agreement, but if the express and the implied choice of law is not made by the parties then in that case the choice of law is determined by the law of seat of the arbitration and the contract as a whole as well.   [ 7 ]    The Seat of arbitrat ion is described in the S (3) of the Arbitration Act 1996   [ 8 ]   which describe that it is essential to have seat for arbitration which defines the geographical location of the arbitration as well as the procedural law, the seat may be different as well e.g. The LCIA ( London Court Of International Arbitration Rules).   [ 9 ]    A number of cases in different jurisdiction which has taken the law appropriate to govern the arbitration agreement. The case of C V D   [ 10 ]   this case emphasis on the even though, in the contract it was stated that, the contract is to be governed by the New York law, the Court of Appeal decided that English law will apply, because it was expressly stated by the parties that any in case of any dispute the issue will be finally resolved in London under the Arbitration Act 1996. To support the judgment the English court gave a list of cases to support the idea, where it was stated that the case will be decided according to the English law wh ere it was made specific that Arbitration Act 1996, other cases such as, Xl insurance Ltd v Owens corning   [ 11 ]   and Noble assurance company and shell petroleum inc v Gerling Konzern general Insurance Company Uk branch   [ 12 ]   . In the case of Black Clawson   [ 13 ]   it was stated that it would be a rare case in which the law of arbitration would not be a seat of arbitration.