header-logo header-logo

27 October 2020
Issue: 7908 / Categories: Legal News , Family , ADR , Arbitration
printer mail-detail

‘Seismic shift’ for matrimonial finance arbitration awards

Family law arbitral awards can be challenged in the same way as court decisions, the Court of Appeal has confirmed in a landmark case

Ruling in Haley v Haley [2020] EWCA Civ 1369 last week, the court clarified that matrimonial finance arbitration awards should be subject to the same rights of appeal, using the same test, as first instance judicial decisions.

James Ewins QC and William Tyzack, of Queen Elizabeth Building, who represented Mr Haley, said the court had ‘recognised the need to align the appellate test applicable to arbitral awards and judicial decisions determining financial remedies upon divorce or dissolution of a civil partnership.

‘This represents a seismic shift in approach, and removes the last major obstacle to arbitration becoming a genuinely viable alternative for almost every couple who cannot resolve their disputes by consent.’

Until now, it has been more difficult to challenge an arbitral award than a judicial decision, which has deterred divorcing couples from seeking arbitration.

Mr Haley sought to appeal against the terms of an arbitration award made under the Family Law Arbitration Scheme. The Family Division dismissed his appeal. However, Haley successfully argued that the test for challenging an arbitration award should mirror the test set out in the Family Procedure Rules, ie that the decision is ‘wrong’.

The Court of Appeal agreed that the higher thresholds (that the decision was ‘obviously wrong’ or there was an error that ‘leaps off the page’) that make a  challenge to a commercial arbitration award so difficult cannot in fairness apply to family law arbitrations.

Mr Haley’s solicitor, Levison Meltzer Pigott partner Alistair Myles, said: ‘I am a strong advocate of family law arbitration and I hope that following this decision, more people involved in family law disputes may opt for this route, which offers many benefits over traditional court proceedings, not least speed, certainty of tribunal and privacy.

‘With the tests for challenging a decision now being the same, there is now no advantage to people using what is a sadly over-burdened court system, particularly as the courts face the challenge of a backlog of cases following lockdown.’

Issue: 7908 / Categories: Legal News , Family , ADR , Arbitration
printer mail-details

MOVERS & SHAKERS

Hogan Lovells—Lisa Quelch

Hogan Lovells—Lisa Quelch

Partner hire strengthens global infrastructure and energy financing practice

Sherrards—Jan Kunstyr

Sherrards—Jan Kunstyr

Legal director bolsters international expertise in dispute resolution team

Muckle LLP—Stacey Brown

Muckle LLP—Stacey Brown

Corporate governance and company law specialist joins the team

NEWS

NOTICE UNDER THE TRUSTEE ACT 1925

HERBERT SMITH STAFF PENSION SCHEME (THE “SCHEME”)

NOTICE TO CREDITORS AND BENEFICIARIES UNDER SECTION 27 OF THE TRUSTEE ACT 1925
Law firm HFW is offering clients lawyers on call for dawn raids, sanctions issues and other regulatory emergencies
From gender-critical speech to notice periods and incapability dismissals, employment law continues to turn on fine distinctions. In his latest employment law brief for NLJ, Ian Smith of Norwich Law School reviews a cluster of recent decisions, led by Bailey v Stonewall, where the Court of Appeal clarified the limits of third-party liability under the Equality Act
Non-molestation orders are meant to be the frontline defence against domestic abuse, yet their enforcement often falls short. Writing in NLJ this week, Jeni Kavanagh, Jessica Mortimer and Oliver Kavanagh analyse why the criminalisation of breach has failed to deliver consistent protection
Assisted dying remains one of the most fraught fault lines in English law, where compassion and criminal liability sit uncomfortably close. Writing in NLJ this week, Julie Gowland and Barny Croft of Birketts examine how acts motivated by care—booking travel, completing paperwork, or offering emotional support—can still fall within the wide reach of the Suicide Act 1961
back-to-top-scroll