International Commercial Arbitration at Solomon Islands
Here’s a concise overview of International Commercial Arbitration in the Solomon Islands:
1. Legal Framework
The Solomon Islands does not have a dedicated modern arbitration statute modeled explicitly on the UNCITRAL Model Law.
Arbitration matters are generally governed by the Arbitration Act (Cap. 16), which is based on older English arbitration legislation, or by common law principles inherited from the UK.
The Arbitration Act is somewhat outdated and does not cover many modern arbitration issues explicitly.
2. Recognition and Enforcement
The Solomon Islands is not a party to the New York Convention (1958) on the Recognition and Enforcement of Foreign Arbitral Awards.
Enforcement of foreign arbitral awards relies on domestic legislation or common law principles, which may complicate recognition and enforcement.
Enforcement and recognition could be unpredictable and may require local court proceedings.
3. Institutional and Judicial Support
There are no local institutional arbitration centers in the Solomon Islands.
Arbitration clauses often designate foreign seats such as Singapore, London, or Sydney to benefit from stronger arbitration frameworks.
The judiciary generally respects arbitration agreements but has limited experience in international commercial arbitration cases.
4. Practical Considerations
Because the local framework is underdeveloped and the country is not a New York Convention signatory, international parties usually choose a neutral third country as the seat of arbitration.
Using established international arbitration institutions like ICC, SIAC (Singapore International Arbitration Centre), or LCIA is common.
Arbitration clauses should clearly specify the governing law, seat of arbitration, and the arbitration rules to avoid local jurisdictional complications.
5. Summary
| Aspect | Status in Solomon Islands |
|---|---|
| Arbitration law | Outdated Arbitration Act + common law |
| New York Convention | Not a party |
| Local arbitration centers | None |
| Preferred seat for arbitration | Usually foreign neutral venue |
| Enforcement of foreign awards | Uncertain, requires court involvement |
6. Recommendations
For international contracts involving the Solomon Islands, specify arbitration in a New York Convention seat with recognized rules.
Engage international arbitration institutions for dispute resolution.
Obtain local legal advice if enforcement of an award in the Solomon Islands is anticipated.
RELATED Blog
0 comments