The Commercial Arbitration Bill was passed by both Houses of the New South Wales Parliament in October 1984. It is expected that the Bill will be assented to and become law early in 1985.

The Bill replaces the present New South Wales Arbitration Act 1902 and the Arbitration (Foreign Awards and Agreements) Act 1973. The Bill is a revised version of the 1982 Commercial Arbitration Bill and lays down a new set of rules and procedures for the conduct of commercial arbitrations. Discussions between the New South Wales and Victorian Attorneys-General have resulted in a similar Bill being introduced into the Victorian Parliament, and it is intended that the Bill should be a model for a uniform law of commercial arbitration in all the States.

The general aim of the new Bill is to encourage the use of arbitration as a means of resolving commercial disputes. By increasing the powers of arbitrators and streamlining the procedure for enforcing arbitration awards, the Bill endeavours to make arbitration a more practical and effective way of resolving such disputes than it has been in the past. If the Bill is successful in promoting the use of commercial arbitration, it is hoped that it will reduce the backlog of cases presently awaiting determination by the courts.

The following seven Bills are cognate with the Commercial Arbitration Bill: Administration of Justice (Commercial Arbitration) Amendment Bill.

Section 4 defines “arbitration agreement” broadly to mean:—

Section 3(7) of the Bill specifically preserves the provision in s. 19 of the Insurance Act whereby a clause in a contract of insurance providing for the submission of a dispute to arbitration does not bind the insured except where the contract is entered