CHARTERED BUILDING SURVEYORS

Specialising in boundaries in England and Wales- where they are and what rights exist across them. Working on the edge - facilitating construction in the urban environment, helping to maximise site use, minimise cost and delay caused by neighbours, and protecting the rights of owners of land and buildings from building works and associated activities nearby.

Notes on the introduction of the Arbitration Act 1996 and its effect on the application of the Party Wall etc Act 1996 and the London Building Acts (Amendment) Act 1939 where it still applies if the dispute resolution procedure under those Acts is a statutory arbitrations.

The Act came into force on January 31, 1997, replaces most (Part I and s42(3)) of the '50 Act, the whole of the '75 and '79 Acts,  and has retrospective effect.

There are several new provisions which could also affect work under the Party Wall etc Act 1996 and the London Building Acts (Amendment) Act 1939

Appointed surveyors:

1. are not liable for anything done in the course of their functions unless it is shown to have been in bad faith and this also applies to their employees and agents,
2. may rule on their own jurisdiction as to whether the Party Wall etc Act applies to the matters in dispute, whether they are properly appointed, and what matters are to be determined,
3. continue to make awards whilst an objection to the court is pending,
4. may order an owner to provide security for their fees,
5. may dismiss any claims made by an owner if there is any delay on his part and may proceed to award on a matter without his evidence if he has failed on notice to produce,
6. may make more than one award in any dispute,
7. may award payment of compound interest on any sums,
8. must proceed to make an award (even if the owners reach agreement between themselves) recording the agreement in the form of an agreed award,
9. must include reasons in the award and state the seat of the arbitration and the date on which the award was made,
10. must make all awards in writing and sign them, (the practice of having the signatures witnessed is unnecessary),
11. may correct an award,
12. should generally award costs on the basis that they follow the event.

The court has its powers restricted in that it must support, not intervene:

1. it can only consider questions of the jurisdiction of the appointed surveyors if the application is made either with the written agreement of the other party to the dispute or with the permission of the surveyors and the determination is likely to lead to substantial savings in costs, that the application was made without delay, and that there is good reason why the matter should be determined by the court,
2. it can only set aside an award or declare it to be of no effect if it considers that it would be inappropriate to remit the award to the surveyors for reconsideration, and then only if substantial injustice would otherwise be caused
3. no appeal can be heard against a determination of the appointed surveyors unless it is made as soon as possible and the owner has not continued to take part in the proceedings without objection,
4. as before, no appeal lies against an award on the ground of errors of fact or law

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DAVID BOWDEN & ASSOCIATES CHARTERED BUILDING SURVEYORS

27 Selby Road    London E11 3LT    UK    Tel +44 (0) 20 7377 9494

partywalls@davidbowden.co.uk

These pages ©David A Bowden BSc MRICS ACIArb 1996 - 2003
part Crown Copyright 1996 see notice

Web site first opened November 1997
Last updated June 1999