15 December 2025

Arbitration, Confidentiality and Court Orders: Lessons from Spencer v Spencer [2025] EWFC 431

Family law arbitration has long been promoted as a private, efficient alternative to litigation. But what happens when an arbitration award collides with parallel High Court proceedings — and the losing party wants to use confidential arbitral material to defend their reputation in open court?

Mr Justice Peel's judgment in Rt Hon The Countess Karen Anne Spencer v Rt Hon The Ninth Earl Spencer [2025] EWFC 431 provides a rare and important look at the interface between family arbitration, confidentiality, media litigation, and the extent to which an arbitration award can be deployed outside the financial remedy arena. It also illustrates, in stark terms, that converting an arbitral award into a court order is usually straightforward — until external litigation and reputational concerns push against the protective walls of confidentiality.

The backdrop: Arbitration meets the King’s Bench Division

The Spencer divorce was referred to arbitration under the Family Law Arbitration Scheme (ARB1FS) in 2024. The parties chose arbitration for one obvious reason: privacy.

However, shortly afterwards, the husband’s partner, Professor Jarman, issued King’s Bench proceedings against the wife for alleged misuse of personal information. Offers were made, including a Part 36 offer, and these became entwined with the arbitration because:

  • the arbitrator expected the wife to accept the Part 36 offer,
  • the husband was required to indemnify her against any sums owed,
  • and the financial outcome of that separate litigation would directly affect the arbitral award.

The arbitrator permitted a limited set of paragraphs from the award to be disclosed to the parties’ media lawyers and, if needed, into the King’s Bench proceedings. These paragraphs explained why the wife was being encouraged — financially incentivised, even — to accept the offer.

This limited disclosure would later become the battleground.

The problem: How much of an arbitration can you reveal?

When both parties applied to convert the arbitration award into a financial remedy order, the wife sought to go further. She wanted:

  • disclosure of additional portions of the arbitral award,
  • disclosure of the arbitrator’s explanatory email in full,
  • permission to use arbitral material publicly to “defend her reputation”,
  • and, at one point, permission to place the entire award in the public domain.

This was a bold request — and one that pushes directly against the foundational principle of family arbitration: confidentiality.

The law: Confidentiality is the rule, but not an absolute one

Peel J surveyed the key authorities:

  • Emmott v Michael Wilson & Partners — arbitration is private and confidential.
  • Article 16.1 of the Family Arbitration Rules — confidentiality applies unless disclosure is necessary to challenge, enforce, or implement an award.
  • The well-recognised exceptions: consent, court permission, necessity to protect legitimate interests, or the interests of justice.

He also analysed the competing Article 6, 8 and 10 rights:

  • fair trial,
  • privacy/reputation,
  • freedom of expression.

In short: the court had to balance the wife’s right to defend herself in open litigation against the husband’s right to the private process both parties contracted for.

The decision: The award can become an order — but disclosure remains tightly controlled

Peel J allowed:

  • the conversion of the arbitration award into a court order (uncontroversial),
  • disclosure of the already-authorised paragraphs,
  • and disclosure of parts of the arbitrator’s 24 July 2025 email, as they were “reasonably necessary” for the King’s Bench judge to understand the context of the settlement.

But he firmly refused:

  • wider disclosure to the media,
  • use of confidential arbitral material for general reputational management,
  • disclosure of the full award into the King’s Bench proceedings,
  • and any pre-emptive publication of arbitration documents before they were aired in open court.

To grant such requests, he said, would "drive a coach and horses through the confidentiality central to the arbitration process."

The message is unmistakable: arbitration confidentiality means something — and courts will defend it.

The wider lessons for family practitioners

This case is particularly important because it is unusual. Most arbitration awards sail smoothly into orders without any satellite litigation. But when reputational disputes spill over into open court:

  • Arbitration confidentiality is not absolute, but the threshold for breaching it is high.
  • Disclosure will only extend as far as is strictly necessary for fairness in linked litigation.
  • Parties must think carefully about the interaction between arbitration and parallel civil claims, especially where media allegations are involved.
  • Arbitration does not give licence for publicity battles. The court will not permit parties to weaponise confidential material to manage their public image.

Conclusion

Spencer v Spencer is a reminder that arbitration remains a robust and confidential alternative to court — but privacy is not invincibility. When external litigation forces its way in, the family court will allow disclosure only to the minimum extent required for justice, and no further. For separating couples considering arbitration, this judgment reinforces both its strengths and its limits: you can choose privacy, but you cannot always control the world outside it.

3 January 2025

Arbitration Awards in Financial Remedies: Lessons from On v On [2024] EWFC 379

The case of On v On sheds light on the crossover of arbitration awards and court oversight in financial remedy proceedings. It highlights the continuing duty of full and frank disclosure, the importance of factual accuracy in arbitration, and the risks of non-compliance. The case serves as a cautionary tale for parties considering arbitration in divorce cases, especially regarding transparency and the court’s ability to intervene.

Case Overview

In this case, the parties, married for over 24 years, opted for arbitration to resolve their financial disputes. Following the arbitrator's decision, the wife challenged the award, citing fraudulent non-disclosure by the husband. She argued that his failure to disclose accurate business valuations and other material financial details undermined the fairness of the award.

The court agreed, setting aside the arbitration award and revisiting the financial arrangements. The case involved complex considerations, including substantial discrepancies in business valuations and contentious claims about financial misrepresentations.

Key Legal Principles

  1. Duty of Full and Frank Disclosure

The court reinforced the principle that the duty of disclosure extends beyond the arbitration hearing until the court approves the resulting order. Judge Booth ruled that this duty is continuous and includes the period between the arbitration award and its enforcement as a court order. The decision highlights that even arbitration does not shield parties from their disclosure obligations.

  1. Standard for Setting Aside Awards

To challenge an arbitration award, the applicant must demonstrate material non-disclosure or procedural unfairness that would have altered the outcome. Here, the husband's misrepresentations about his company’s financial performance—disclosing projected losses when the business ultimately made significant profits—constituted material non-disclosure.

  1. Court Oversight of Arbitration

While arbitration offers a private and binding mechanism, its outcomes are not immune to judicial scrutiny. The court may review the fairness of an award and adjust it where necessary to ensure compliance with the principles of the Matrimonial Causes Act 1973. This decision underscores the court's role as the final arbiter in ensuring fairness.

Key Lessons from the Case

  1. Transparency is Paramount

Parties entering arbitration must ensure complete and accurate disclosure of their financial circumstances. Misrepresentation, even if unintentional, can lead to significant delays, additional legal costs, and the potential setting aside of awards.

  1. Court Supervision of Arbitration

This case demonstrates the importance of judicial oversight in family arbitration. Arbitration agreements may expedite resolution, but they cannot bypass the statutory principles governing financial remedies.

  1. Costs and Risks of Misrepresentation

The financial consequences of non-compliance can be severe. In this case, the husband was found to have deliberately withheld information, resulting in a costly and protracted legal process.

Practical Considerations for Practitioners

  • Advise Clients on Disclosure: Clients must be aware of their continuing duty to disclose, even after an arbitration award is issued.
  • Understand the Risks: While arbitration can save time, it does not eliminate the need for transparency and procedural compliance.
  • Focus on Materiality: Challenges to awards must focus on material issues that would significantly alter the outcome, rather than minor discrepancies.

Conclusion

The judgment in On v On serves as a reminder that arbitration, while valuable, requires the same degree of rigour and transparency as court proceedings. For family law practitioners, the case underscores the importance of thorough preparation and honest disclosure when guiding clients through arbitration or financial remedy disputes. It also reaffirms the court’s role as a safeguard against unfair outcomes in matrimonial finance cases.

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