The High Court of Australia has delivered a decision confirming the constitutionality of the International Arbitration Act, the legal framework which underpins Australia’s position as a international business destination to resolve cross border disputes.

The proceedings arose out of a dispute between China-based TCL Air Conditioner and Australia-based Castel Electronics.  The Australian Solicitor General, several state Attorneys General and a coalition of Australia’s arbitral institutions including the Australian Centre for International Commercial Arbitration intervened in the proceedings. The arbitral coalition’s intervention was financially supported by the IMF Australia, in a first for the litigation funder.

King & Wood Mallesons partner Alex Baykitch, who provided pro bono advice on this matter, said the decision was significant. “This is a welcome decision as it allows Australia to continue as a financial centre within the region of which international arbitration is an important element,” he said.