LCIA News: Annual Report on 2021, LCIA Court updates and Tylney on Tour in Scotland 17 May 2022 We are pleased to share with you some key news from the LCIA including: The launch of the "LCIA Annual Casework Report 2021" A second term as President of the LCIA Court for Paula Hodges QC A welcome to several new Court members and two new Vice Presidents to the LCIA Court “Tylney on Tour” in Scotland ahead of ICCA 2022 Please email [email protected] if you have any questions. LCIA Annual Casework Report 2021 At the time of writing this report, external developments take centre stage. The ongoing war in Ukraine, the upheaval to people’s lives, industry, and commerce around the world, directly and as a result of sanctions, have had and will continue to have seismic consequences. Geopolitical developments in Russia, Ukraine, and elsewhere will impact everyone and everywhere. At this stage predicting the effects on the LCIA, its staff, its operations, and its caseload, is impossible. All we can do is report on 2021 and seek to discern (partial) trends that may help to explain and inform future developments, without suggesting comprehensiveness and/or certainty. The COVID-19 pandemic continues to impact different countries in different ways and in waves. Two years after the first restrictions were imposed in the United Kingdom, the LCIA has been able to review and analyse the impact of the pandemic on its caseload with some perspective. There were fewer referrals in 2021 compared with the record high year of 2020, but a longer-term perspective of the data shows a return to numbers more closely aligned to 2019. In 2021, the LCIA received 387 referrals for its services, including 322 referrals for arbitration pursuant to the LCIA Rules. The ongoing war in Ukraine will no doubt have lasting effects on an already declining caseload from Russia (from 6.8% of parties in 2020 to 2.1% in 2021), as well as industry sectors from which the cases are referred. While the LCIA is faced with the immediate impact of sanctions in ongoing cases, predicting the longer-term impact will not be straightforward. To some extent, the fact that 2021 already saw a decrease in Russia-related cases suggests that the impact going forward has been mitigated. At the same time, the wider repercussions are likely to impact transactions, agreements, and resulting disputes much more broadly and profoundly, and these effects are far more complex and unquantifiable. In March 2022, following Decree No. (34) of 2021 of the Government of Dubai, the LCIA and Dubai International Arbitration Centre (DIAC) concluded an agreement by which the LCIA would administer all existing DIFC-LCIA cases from London. Approximately 130 DIFC-LCIA cases are now being administered from London and a payment mechanism has been agreed in relation to the funds paid by parties into bank accounts previously held on behalf of DIFC-LCIA and now owned by DIAC. More details on these cases will be reported in next year’s Annual Report. In 2021, the percentage of parties from the United Arab Emirates more than doubled (from 4.3% of parties in 2020 to 9.5% in 2021). It is anticipated that going forward, the LCIA will see more referrals from this region. Referrals for the LCIA’s other services, notably fundholding, have increased. The top three industry sectors of the LCIA’s caseload remain banking and finance, energy and resources, and transport and commodities (together representing 65% of all cases). The fact that in 2020 more arbitrations were filed within a relatively short time after the conclusion of the agreement leading to a surge in new cases suggested that subsequent years would see a commensurate decrease and the 2021 numbers confirm this. The LCIA now comprehensively records the percentage of parties which are state bodies or state-owned entities. In 2021, 5.7% of parties were a state body or state-owned entity. Parties in arbitrations administered pursuant to the LCIA Rules continued to choose a variety of international seats and laws in 2021, and there was a similar spread of different seats and laws as in 2020. In a number of cases parties aligned non-English seats and laws, in particular selecting Mexico and Texas. The LCIA Court remains the main driving force in gender diversity, selecting women in 47% of all its appointments. While the overall proportion of appointments of women pursuant to the LCIA Rules remains steady at 32% (142 out of 449 appointments), the contribution of co-arbitrators and parties in appointing gender-diverse candidates still lags behind considerably, despite the fact that the LCIA selects a disproportionate number of sole and presiding arbitrators, for which generally (LCIA) experience is required. It is especially disconcerting that the percentage of women selected by parties decreased from 22% to 16%. The imbalance in contribution to diversity is compounded by a greater proportion of repeat appointments being made by the parties and co-arbitrators compared with direct appointments by the LCIA. The number of challenges, seven in 2021, remains consistently low, also as a percentage of the number of new arbitrations (below 2.5%). Parties have taken up the new features provided by the 2020 Rules, including the ability to file a composite request for arbitration. In 2021, the LCIA received 29 such requests, commencing 96 arbitrations, equating to 30% of arbitrations received in 2021. The 2020 Rules also contain broader provisions for consolidation. In part probably nudged by the provision enabling parties to submit composite requests, the number of consolidation applications as a proportion of all cases increased somewhat. In addition, the proportion of successful applications increased and moreover, they took place at an earlier stage in the arbitration. Similarly, the express provision regarding early determination has found favour with users. Tribunals in LCIA arbitrations received 15 applications for early determination pursuant to Article 22.1(viii) of the Rules in 2021. Parties made more applications for expedited formation of the tribunal and the appointment of an emergency arbitrator in 2021 than 2020, a sign that the parties are utilising all the tools in the LCIA toolkit. Click here to read the LCIA Annual Casework Report 2021 in full Updates to the LCIA Court The weekend of 6-8 May 2022 saw the much-anticipated return to meeting in person at the LCIA’s flagship symposium at Tylney Hall. Delegates were on great form, engaging in lively discussions throughout, no doubt heightened by some of the best weather we have seen at Tylney over the years. As in previous (pre-Covid) years, the second LCIA Board meeting and first meeting of the LCIA Court of 2022 took place on the Friday at Tylney, and we are pleased to update you on the subsequent appointments, re-appointments, retirements, and promotions on the LCIA Court, effective from that time. Having started her Presidency in May 2019, Paula Hodges QC’s first term as President of the LCIA Court saw huge developments at the LCIA with the introduction and implementation of the LCIA Rules 2020, the LCIA’s record number of cases in 2020 and the LCIA’s move to digital communication as the default, and we are delighted to confirm that Paula will serve a second term as President. With Jim Loftis and Natalie Voser’s terms as Vice President expiring, Matthew Gearing QC and Gabrielle Nater-Bass have both been promoted to Vice President. In addition, with the LCIA nominating committee and Court mindful of the need to maintain the gender and geographic diversity of the LCIA Court, with the expiration of the terms of Alan Moore, Julia Zagonek and Nayla Comair-Obeid together with Jim and Natalie, the following five individuals have been appointed as LCIA Court members: Ramunas Audzevicius (Lithuania) Utku Cosar (Turkey) John Fellas (US/UK) Nania Owusu Ankomah (Ghana) Sami Tannous (Dubai). Paula Hodges QC, President of the LCIA Court "I am thrilled to have been given the opportunity to do a second term as LCIA President. With the 2020 Rules now being in full swing and the increasing reach of the LCIA globally, there are many exciting initiatives afoot, and I am delighted to be able to work with the LCIA Secretariat, Court and Board to bring all our plans to fruition over the next three years.” Professor Dr Jacomijn van Haersolte-van Hof, LCIA Director General "I am delighted that Paula Hodges will continue her leadership of the LCIA Court and I am very pleased to welcome the new group of eminent and distinguished practitioners to the Court. I wholeheartedly thank the retiring members of the Court, and in particular the Vice Presidents, for their valued support of the institution.” A full listing of all LCIA Court Members can be viewed here. Tylney on Tour - 15-17 September 2022 The application process for the LCIA’s flagship September “Tylney” symposium, which we are taking “on tour” to Scotland in coordination with ICCA 2022, will be launched in the coming week together with confirmation of a new venue. Please see our Events Schedule for further information and “register your interest” to receive an invitation to apply as soon as the application process opens. Membership of the LCIA Users' Councils The LCIA membership provides a wide array of opportunities to enhance your professional knowhow and network. Join an inclusive and world-class community, expand your network and enjoy exclusive privileges including: Gain exclusive access to and a listing in the online LCIA Directory of Members. Be part of a network of eminent practitioners. Online access to the LCIA Dashboard allowing management of your profile, membership, events and subscription. Receive our highly respected quarterly journal, Arbitration International, hard copy and online access to the full archive (dating back to 1985). Advance notice of all LCIA events with discounted registration fees. Take the opportunity to share ideas and expertise and participate in events which include our unique Tylney-Hall style format, providing an important platform facilitating discussion of topical issues and thought leadership for the global arbitral community. Stay informed with LCIA news items. For further information about membership of the LCIA Users' Councils, including the various types of memberships, please click here.