Client Alert

| August 1, 2011

Common Sense Prevails: Supreme Court Reverses Court of Appeal's Decision on Arbitrator Selection

In a keenly anticipated judgment, the Supreme Court has ruled that arbitrators are not "employees" for the purposes of UK anti-discrimination legislation.

In doing so, the Supreme Court overturned last year's controversial decision of the Court of Appeal which held that an arbitration agreement that required all arbitrators to be members of a specific religious community was void because it breached anti-discrimination law. The Court of Appeal's decision had wider implications and caused alarm as it called into question the validity of many existing arbitration agreements which routinely incorporate institutional arbitration rules providing that the presiding or sole arbitrator shall not be the same nationality as the parties.

This memorandum is intended only as a general discussion of these issues. It is not considered to be legal advice. We would be pleased to provide additional details or advice about specific situations. For additional information on this important topic, please feel free to call upon your Dewey & LeBoeuf relationship partner. No part of this publication may be reproduced, in whole or in part, in any form, without our prior written consent. For further information on Dewey & LeBoeuf, please visit www.dl.com. +1 888 532 6383