AA 1996—costs and interest under the award
Produced in partnership with CMS
AA 1996—costs and interest under the award

The following Arbitration practice note produced in partnership with CMS provides comprehensive and up to date legal information covering:

  • AA 1996—costs and interest under the award
  • What costs can be awarded
  • Liability for costs
  • Timing of an award on costs
  • Submissions on costs
  • Validity of cost award
  • Interest

Under s 49(3) Arbitration Act 1996 (AA 1996), a tribunal has the power, absent any express agreement of the parties, to make an order for interest on any sums awarded. Under AA 1996, s 61, it has the power, again subject to any agreement of the parties, to make an award allocating the costs of the arbitration as between the parties. Sometimes the costs award will be made after a final award ‘save as to costs’ and following submissions from the parties once they know the outcome of the arbitration.

Note that under AA 1996, s 60, the parties are precluded from agreeing prior to the dispute arising that one party pay the whole or the part of the costs of the arbitration in any event and regardless of the outcome. Such an agreement is only valid if made after the dispute arises.

What costs can be awarded

Subject to any agreement between the parties, the tribunal may make an award allocating the costs of the arbitration.

Costs of the arbitration include:

  1. the arbitrators’ fees and expenses

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