The UK Jurisdiction Taskforce of LawtechUK (UKJTL), chaired by Sir Geoffrey Vos, Master of the Rolls, has published its Digital Dispute Resolution Rules addressing legal disputes relating to digital technology such as crypto assets, smart contracts, and blockchain applications.
The document was drafted following a consultation with lawyers, technical experts and other interested parties.
The Taskforce notes that the new rules allow parties to resolve their disputes by an arbitrator, rather than by a judge in court.
In November 2019 the UKJT published a legal statement on the status of cryptoassets and smart contracts under English and Welsh law. The legal statement was described as a significant step by the UK towards legal certainty for blockchain technology and crypto-assets.
Sir Geoffrey Vos issued the following comment on the rules:
“I am delighted to welcome the publication by the UK Jurisdiction Taskforce of the ground-breaking Digital Dispute Resolution Rules. International business is rapidly adopting the use of digital documentation and on-chain smart contracts. The Rules aim to provide a process for speedy and cost-effective resolution of disputes originating digitally. They will hopefully give global businesses greater confidence to adopt and utilise new digital technologies.”
Jenifer Swallow LawtechUK Director at Tech Nation, added that the way of doing business will be widely restructured and digitised in the coming years:
“The smart contracts market alone is set to reach $345.4 million by 2026. Methods of dispute resolution must keep pace. The Digital Dispute Resolution Rules are a step change in that evolution and in enabling wider confidence and adoption of these technologies – underpinning those readily-available today and capable of adapting to those yet to be developed. This is an exciting next step in the UK’s leadership at the forefront of business, law and technology, and also demonstrates how simple legal processes can be.”
The UKJT said it will keep a close watch on how the Digital Dispute Resolution Rules are used and may revise over time.
The rules may be downloaded here.