Peremptory orders: state immunity

The involvement of states in arbitration is an increasing feature of the arbitral process. State involvement is subject to the State Immunity Act 1978, which grants immunity from suit in the absence of agreement. The 1978 Act has featured in a number of recent applications to enforce arbitral awards, but it has wider ramifications.

In PCL and Others v Regional Government of X [2015] EWHC 68 (Comm) Hamblen J held that the statutory procedures for service of proceedings on a state applied to an application to the court for its assistance in the course of an arbitration. The case involved an application to the court under section 42 of the Arbitration Act 1996 for an order enforcing a peremptory order made by arbitrators.