Bermuda to get international arbitration centre this year
An independent arbitration centre that is expected to drive investment to the island and deliver employment opportunities was announced today with an anticipated launch date of this year.
Leading lawyers and the Government have already voiced support for the much-awaited facility, with a team of experts in place to provide strategic support.
Plans for the Bermuda International Mediation and Arbitration Centre are being led by Sam Stevens, an international arbitration specialist with more than 15 years’ experience, who has left his role as a dispute resolution partner at Carey Olsen to steer the new venture.
Michael Hanson, a managing partner at the law firm, described Mr Stevens as a highly valued member of the team who “contributed significantly to our growth and reputation in Bermuda and is a very grounded and trustworthy leader”.
He added: “Our loss is Bermuda’s gain. I cannot overstate how important an effectively run arbitration centre is for the Bermuda product.
“It will significantly enhance Bermuda’s reputation and we are sure that the legal market, and the wider business sector, will support and embrace this initiative fully.”
The Bimac is expected to be fully operational this year to facilitate effective administration of domestic and international disputes.
A spokesman explained: “The centre will offer approximately 8,500 square feet of technology-enabled hearing and breakout rooms in the heart of the City of Hamilton.
“There will be a full suite of physical and digital support services available including court reporting, virtual hearing rooms and document management systems.
“Bimac is also developing best-in-class procedural rules to govern the conduct of hearings, together with model arbitration and mediation clauses.”
The Government announced plans in the 2018 Throne Speech for an arbitration centre to be housed at the site of the old Hamilton Police Station on Parliament Street and named after Ottiwell Simmons, a former Bermuda Industrial Union president and past Progressive Labour Party MP.
Buildings at the spot were demolished in 2020.
By November 2022, however, uncertainty remained over the possibility of the arbitration centre — a need for which has been highlighted by business leaders since the 1990s — to be developed under a public-private partnership.
Mr Simmons passed away in 2023. Two years later, the proposed facility was referenced in a House of Assembly exchange between David Burt and Ben Smith, then the One Bermuda Alliance deputy leader.
The Premier said then: “I will accept that there was an intention to build an arbitration centre, but what the Government said at the time, given our financial capabilities, is that we wanted to ensure that we worked with the private sector so that it could be a viable project.”
He added that the administration was “unable to get to that space”.
Kim Wilkerson, the Attorney-General and Minister of Justice, said today: “The Government welcomes initiatives that seek to strengthen Bermuda’s dispute resolution landscape.
“We recognise that the establishment of a dedicated centre for alternative dispute resolution has the potential to offer great benefits to the island, including enhancing Bermuda’s reputation as a premier international financial centre and improving access to justice.
“It is encouraging to see a Bermudian with Mr Stevens’s professional experience showing such dedication to the development of this centre in Bermuda.
“The Government will continue to engage with Bimac stakeholders to explore ways we can support this initiative as it develops.”
Chief Justice Larry Mussenden welcomed the anticipated launch of the Bermuda International Mediation and Arbitration Centre as an “important development” for the island’s legal ecosystem.
He said: “Bimac will complement the work of the courts by providing parties with access to efficient and flexible dispute resolution processes, while preserving the courts’ pivotal supervisory and supportive role in arbitration.
“Bermuda’s courts have a longstanding and well-established commitment to supporting arbitration, in accordance with Bermuda’s international obligations under the New York Convention.
“The courts consistently act to uphold valid arbitration agreements, facilitate arbitral proceedings where appropriate, and enforce arbitral awards, thereby providing the legal certainty that domestic and international users alike require.
“This initiative also presents an important opportunity to further embed a culture of alternative dispute resolution in Bermuda, particularly through the early use of mediation.
“Greater engagement with mediation can help parties resolve disputes more efficiently, save costs and reduce the burden on the courts.”
Sam Stevens, the international arbitration specialist leading the centre’s development, added: “From the very first conversation, the Chief Justice has been extremely supportive of this venture, and I am immensely grateful for that.
“Internationally, arbitration remains the pre-eminent mechanism for the resolution of cross-border commercial disputes.
“In countries which have developed into successful hubs for international arbitration, one of the bedrocks of that success has been a highly collaborative relationship between the domestic courts and the national arbitral institution.
“I have no doubt this will also be the case with the Bermuda courts and Bimac as we collectively work to further strengthen the administration of justice in Bermuda.”
A Bimac advisory committee was established to provide strategic support and advice.
Its members include barrister and arbitrator Jeffrey Elkinson; Mark Chudleigh, a managing partner of Kennedys Bermuda; Dame Elizabeth Gloster, an international arbitrator and Justice of Appeal; David Scorey KC, of Essex Court Chambers, an international insurance and arbitration practitioner; and John Ellison, an insurance disputes specialist and partner at Reed Smith.
Mr Elkinson, a former president of the Chartered Institute of Arbitrators and an Assistant Justice of the Supreme Court, said: “Bermuda has waited a long time for a designated arbitration centre.
“Many have tried and now, thanks to Sam with his energy and drive, this is soon going to be a reality. It is a hugely positive development for the jurisdiction.”
He added: “Bermuda has many advantages which make it a world-class venue for international commercial arbitrations — an enviable location, excellent travel connections to the US and Europe, and a robust legal ecosystem with judges knowledgeable in international commercial arbitration.
“There are top-class hotels and restaurants, all within minutes of beautiful beaches and safe waters.
“The fact that there is now a concrete plan in place to execute the concept is great news for Bermuda and the international arbitration community, which has waited a long time for this to happen.”
Two commercial partners are working alongside Mr Stevens on the project: Michael Bengson, the owner of Limestone Property Management, and co-workspace business Nineteen.
Mr Bengson will primarily oversee the centre’s facilities and operations management.
Mr Stevens said: “The evidence is irrefutable that successful arbitral institutions drive inward direct investment to the countries in which they are based, improve the administration of justice and create education and employment opportunities.
“I am extremely grateful for the strategic input and support I have received to date, and look forward to working collaboratively with all stakeholders to make Bimac a world-class institution.”
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