Determining the law of an arbitration agreement: the Sulamérica test in practice
A recent decision of the English Commercial Court has clarified the legal test for determining the governing law of an arbitration agreement.
It is well established that an arbitration agreement is severable from the substantive contract in which it is recorded and that the two agreements may be governed by different laws. Despite this, contracts often include an express choice of law governing the substantive contract, while remaining silent as to the law governing the arbitration agreement. Parties commonly (but wrongly) assume that the law of the arbitration agreement is always the same as that governing the substantive contract.
In the 2012 Sulamérica decision, the English Court of Appeal formulated a three-stage test to determine the law of an arbitration agreement: (i) is there an express choice of law governing the arbitration agreement; (ii) if not, can a choice be implied; and (iii) in the absence of a choice, with which law does the arbitration agreement have the “closest and most real connection”…
If you are registered and logged in to the site, click on the link below to read the rest of the DLA Piper briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from DLA Piper
News from The Lawyer
Briefings from DLA Piper
The Australian Taxation Office released a draft ruling on the Goods and Services Tax treatment of bitcoin transactions on 20 August 2014.
DLA Piper’s ‘Life sciences: patent extension strategies and antitrust global update’ video covers global antitrust and competition issues including product hopping and reverse payment patents.
Analysis from The Lawyer
Regulators are ramping up the pressure in the aftermath of recession, leaving firms to compete for compliance and restructuring work
Shearman & Sterling is making its presence felt in the City, squaring up to magic circle firms and looking to muscle in on key relationships. Private equity house Bridgepoint is one outfit that has had its head turned by the US firm.