For decades, the Arbitration Act of 1996 has been the bedrock of English arbitration, providing a robust framework that has made London a leading global seat for resolving complex disputes. However, as commerce evolves, so too must the laws that govern it. A significant development is the Arbitration Act 2025, which has introduced crucial amendments set to enhance the power and effectiveness of English-seated arbitrations.

These changes directly address a long-standing ambiguity concerning the court’s power to issue supportive orders. Specifically, the amendments clarify the court’s ability to issue orders against third parties—individuals or entities not directly parties to the arbitration agreement. This clarification, coupled with new provisions for emergency arbitrators, promises to strengthen the process, particularly in high-stakes commercial disputes involving fraud or asset protection.

This article explores these pivotal changes, explaining what they mean for practitioners and their clients. For anyone involved in, or considering, arbitration in the UK, understanding these amendments is essential to leveraging the full power of the English courts in support of your arbitral proceedings. As a specialist London Arbitration lawyer, Philip Rubens frequently encounters scenarios where these changes will prove transformative.

The Court’s Powers Under Section 44: An Ambiguity Resolved

Section 44 of the Arbitration Act of 1996 has always been a powerful tool. It grants the English courts the authority to make orders in support of arbitral proceedings. These orders are vital for the smooth and fair conduct of an arbitration and can include measures for:

• The preservation of evidence.
• The sale of goods that are the subject of the proceedings.
• Granting interim injunctions to prevent a party from taking specific actions.
• Securing the amount in dispute.
• Taking the evidence of witnesses.

However, a persistent uncertainty in case law has clouded the full extent of this power. The question was whether these orders could be enforced against non-parties to the arbitration. For instance, could a court compel a bank holding disputed assets to freeze them? Could it order a third-party supplier to preserve crucial evidence? The lack of a definitive answer often left parties in a precarious position, especially when critical assets or proof were in the hands of others.

The 2025 Amendment: Clarity and Extended Reach

The Arbitration Act 2025 cuts through this ambiguity with a clear and decisive amendment. It explicitly states that the court’s powers under Section 44 can be exercised in relation to “a party or any other person.”

This seemingly minor addition has profound implications. It confirms that courts can now direct third parties to comply with supportive orders. This is a game-changer in disputes where the cooperation of non-parties is essential. Typical examples where this power will be critical include:

• Fraud and Asset Dissipation: In cases where there is a risk that a party may move assets to frustrate an award, a court can now issue a freezing order directly against a bank or other financial institution holding those assets, even if it is not a party to the arbitration.
• Preservation of Evidence: If key evidence is held by a third party, such as a subcontractor, supplier, or cloud storage provider, the court can now order them to preserve it pending the outcome of the arbitration.
• Supply Chain Disputes: In complex commercial disputes, a court order could compel a third-party logistics provider to grant access to goods or documentation relevant to the arbitration.

By extending the court’s reach, the 2025 Act strengthens the entire arbitral process, ensuring that interim measures are not just theoretical but practically enforceable.

Balancing Power with Fairness: The Right of Appeal for Third Parties

Extending the court’s powers to non-parties raises essential questions about procedural fairness. An entity with no connection to the underlying dispute could suddenly find itself subject to a court order, potentially incurring costs and business disruption.

Recognising this, the 2025 Act introduces a crucial safeguard: a complete and direct right of appeal for any third party subject to a Section 44 order.

Previously, the path to appeal for a non-party was unclear and often required special leave from the court, creating an additional procedural hurdle. The new provision removes this uncertainty. Now, a third party who believes a court order is unjust or unduly burdensome has an automatic right to challenge it. This balances the court’s expanded powers with robust protection for those drawn into a dispute, ensuring the new measures are applied fairly and proportionately.

Embracing Modern Practice: Support for Emergency Arbitrators

Another significant enhancement in the 2025 Act is the formal recognition of emergency arbitrators and the court’s power to support their decisions.

In modern international arbitration, parties often need urgent relief before a full arbitral tribunal has even been constituted. This is where an emergency arbitrator comes in. Appointed on an expedited basis, their role is to grant temporary measures to protect the status quo. However, the legal standing of these emergency orders has sometimes been uncertain.

The 2025 Act formalises the role of emergency arbitrators within the English legal framework. It explicitly empowers the courts to grant Section 44 supportive orders at the request of an emergency arbitrator. This means that urgent, pre-tribunal orders—such as asset freezes or injunctions—can be swiftly enforced with the full weight of a court order. This change is particularly vital in time-sensitive disputes where any delay could cause irreparable harm. It aligns the Arbitration Act of 1996 with the rules of major arbitral institutions, such as the LCIA and ICC, which have long had provisions for emergency proceedings.

What This Means for Your Arbitration Strategy

These amendments collectively strengthen London’s position as a premier seat for international arbitration. For businesses and legal practitioners, they offer greater confidence and predictability.

• Enhanced Effectiveness: Parties can be more confident that English arbitration can effectively address complex, multi-party disputes, even when third parties hold crucial assets or evidence.
• Greater Strategic Options: Knowing that courts can and will enforce arbitration awards against non-parties opens new strategic avenues, particularly for securing assets at an early stage.
• Alignment with Global Standards: The changes align the English arbitration framework with modern international best practices, reinforcing its appeal to global businesses.

The ability to obtain swift, enforceable interim relief is often a deciding factor when choosing an arbitral seat. These reforms ensure that the English system remains competitive, robust, and fit for the challenges of modern commerce.

Partner with an Expert London Arbitration Lawyer

The  recent  changes to the Arbitration Act of 1996 represent a significant step forward, providing the English courts with much-needed clarity and power in support of arbitration. By enabling orders against third parties and formally integrating emergency arbitrator proceedings, the 2025 Act ensures that English-seated arbitration remains an effective and attractive option for resolving high-value commercial disputes.

Navigating these developments requires specialist expertise. Philip Rubens is a Legal 500-ranked London Arbitration lawyer with over 30 years of experience in high-stakes international arbitration. His deep knowledge of the procedural landscape, including the strategic use of interim measures, ensures clients are positioned for success. If you are facing a complex commercial dispute, understanding how to leverage these new powers will be crucial.

To learn more about Philip Rubens and further legal services, get in touch here.