A win for Jay-Z Jay-Z made headlines in the arbitration world last year with his application to halt arbitration proceedings relating to the 2007 sale of the Rocawear clothing brand to Iconix. His complaint was that arbitration would be unfair because only two of the over 200 arbitrators proposed by the AAA (American Arbitration Association) identified as African-American and were free of conflicts. Jay-Z argued that the lack of diversity in the candidate pool left him with no real choice and constitute racial discrimination under New York law voiding his agreement to arbitrate with Iconix. AAA has now allowed the dispute to proceed before a three person arbitral tribunal instead of a single arbitrator and have offered five African-American candidates. AAA has also agreed to consider a list of 11 African-American candidates put forward by Jay-Z. The case is a timely reminder of the continuing need to increase diversity in the field of arbitration in all respects.
Hong Kong welcomes Third Party Funding The amendments to Hong Kong’s Arbitration Ordinance permitting funding of Hong Kong arbitrations have now come into force (as of 1 February 2019) alongside a Code of Practice for third party funders. This development is the product of a public consultation process launched by Hong Kong’s Law Reform Commission six years ago in 2013 and follows Singapore’s earlier legislative endorsement of third party funding in 2017. Distinguishing itself from Singapore’s approach, Hong Kong’s definition of third party funder is not limited to professional funders but also include any “person who is a party to a funding agreement…and who does not have an interest recognized by law in the arbitration other than under the funding agreement”. Amendments to Thai Arbitration Act On 25 January 2019, the Secretary of the Cabinet confirmed the National Legislative Assembly’s bill amending the Thai Arbitration Act B.E. 2545 (2002) to allow foreign arbitrators and representatives to act in Thai arbitration proceedings. Following Royal endorsement, the Amendment will come into force the day after its publication in the Government Gazette.