Linklaters assists the UK Jurisdiction Taskforce on its Digital Dispute Resolution Rules

Linklaters has assisted the UK Jurisdiction Taskforce (UKJT) on its Digital Dispute Resolution Rules that have been published today. The rules, which can be used in the context of on-chain digital relationships and smart contracts, establish a new arbitration procedure aimed at facilitating the rapid and cost-effective resolution of disputes arising out of the use of digital assets, smart contracts, blockchain and fintech.

The rules follow the publication of the UKJT’s landmark Legal Statement on Cryptoassets and Smart Contracts in November 2019, which recognised cryptoassets as property and smart contracts as enforceable under English law. The UKJT’s statement provided certainty in the industry and has been recently endorsed by the English courts, most notably in AA v Persons Unknown [2019] EWHC 3556 (Comm) and Ion Science Ltd v Persons Unknown and others (unreported) 21 December 2020 (Commercial Court).

The Digital Dispute Resolution Rules were published following an open consultation that took place on a draft set of rules earlier this year. David Quest QC and Lawrence Akka QC led the drafting committee, supported by other committee members, including Linklaters UK Head of Fintech Richard Hay and dispute resolution partner Rory Conway. As well as playing a role in the development of the rules, Linklaters was heavily involved in the UKJT’s legal statement and associated public consultation.

Rory Conway, partner at Linklaters, said:

“We are pleased to have been able to assist the UKJT on another important milestone, this time providing much-needed legal certainty for the dispute resolution procedures in respect of a range of digital technologies.

The rules are a novel development and the establishment of a bespoke arbitral procedure tailored to digital disputes will be welcomed across the industry.”