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Law update improves Japan’s international arbitration offering
11 Apr 2024, 8:30 am
Recent amendments to Japan’s Arbitration Act will bring its international arbitration offering in line with key regional players like Hong Kong SAR and Singapore, an arbitration expert has said.
The amended arbitration law, which came into effect on 1 April, is based on the 2006 UNCITRAL Model Law. It replaces the Arbitration Act of 2003, which was based on the 1985 UNCITRAL Model Law.
Under the amended law, interim measures issued by arbitral tribunals are now enforceable in Japan’s courts, allowing parties to enforce such measures as the preservation of assets and the prohibition of actions that could cause harm to the proceedings. Previously, interim measures granted by an arbitral tribunal had not been enforceable in the courts of Japan.
In addition, while the previous law considered arbitration agreements which were not in writing to be invalid, the amended law now allows for non-written contracts which incorporate written or electronic records of arbitration agreements by reference.
Under the amended law, courts in enforcement proceedings no longer need to uphold the requirement of a full Japanese translation of an arbitral award. The decision to request a full or partial translation is now at the court’s discretion.
The amended law also provides for arbitration-related court proceedings to be filed with the Tokyo District Court or Osaka District Court. While it will still be possible for parties to file with other district courts, the amendment allows for the concentration of international arbitration expertise, with other district courts able to transfer arbitration-related proceedings to either the Tokyo or Osaka district courts, as appropriate.
Karah Howard, an arbitration expert at Pinsent Masons, said: “The changes to the Japanese arbitration law will bring Japan in line with other major regional players such as Hong Kong SAR and Singapore, and include allowing enforcement of interim measures and modernising the definition of what amounts to a written arbitration agreement.”
“Identifying Tokyo and Osaka District Courts as specialist courts empowered to deal with international arbitration-related proceedings will also improve certainty and consistency in the recognition and enforcement of awards.”
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