Is Australia really arbitration friendly? Implications of Westport Insurance v Gordian Runoff

Introduction

The High Court of Australia's recent decision in Westport Insurance Corporation v Gordian Runoff Ltd [2011] HCA 37 may provide further ammunition for those who see Australian courts' approach to arbitration as parochial and interventionist.  

Instead, the Court's decision on the adequacy of reasoning under the now-repealed Commercial Arbitration Act 1984 (NSW) should be viewed as:

• applying only to domestic arbitrations governed by the old State arbitration laws;
• being of no direct application to international arbitration;
• largely consistent with the approach of other jurisdictions; and
• revealing a mature appreciation of arbitration and its history by Australia's highest court.