The Arbitration (Scotland) Bill was passed in November 2009 (see Legal update, Scottish Parliament passes Arbitration Bill). The Bill abolishes the distinction between domestic and international arbitration, creating a unitary system with the aim of providing Scotland with a modern and efficient arbitration regime. The Bill received Royal Assent on 5 January 2010 and the relevant parts of the Act are expected to come into force in March 2010. Unless parties agree otherwise, the Act will apply to arbitrations commenced on or after the commencement date.

Following publication of a Green Paper in April 2009 and the subsequent consultation process (see Legal update, Green paper on the application of the Brussels Regulation), it is expected that amendments will be made to the Brussels Regulation which may provide clarity in respect of the status of the arbitration exception. Given confusion in this regard arising from the ECJ decision in West Tankers (see Legal update, West Tankers ECJ judgment: full report) and the Court of Appeal decision in National Navigation Co v Endesa Generacion SA [2009] EWCA Civ 1397 (see Legal update, National Navigation v Endesa: full report), any such clarification is likely to be welcomed. For further information on these issues, see Legal update, EU: anticipated developments in 2010.