Q&As

Where a party has been ordered to pay 50% costs before an award will be granted, how will the allocation of costs be dealt with by the arbitrator/tribunal in the award?

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Published on LexisPSL on 30/07/2018

The following Arbitration Q&A provides comprehensive and up to date legal information covering:

  • Where a party has been ordered to pay 50% costs before an award will be granted, how will the allocation of costs be dealt with by the arbitrator/tribunal in the award?

In answering this Q&A it has been assumed that it is a London-seated ad hoc arbitration conducted in accordance with the Arbitration Act 1996 (AA 1996) (rather than any institutional or other arbitration rules), and that the parties have not made any separate agreement in respect of costs. Further, it is assumed that the arbitrator has only asked for payment of their own costs (ie their fees and expenses) in advance.

The requirement for payment in equal shares of an arbitrator’s fees and expenses in advance is usual in arbitration proceedings—essentially, this provides the tribunal with reassurance it will be paid for its role in resolving the dispute and prevent situations where an aggrieved party decides it’s not interested in paying its share if the tribunal holds against it in the substantive award. This can be particularly useful in ad hoc arbitrations where there is no institution involved in col

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