Even without the detailed statistics, the ICC Report gives great insights on how arbitral
tribunals award costs in international arbitration.
In the course of proceedings before the tribunal between the commissioners and the taxpayer company, X, in relation to X's liability under a county court judgment for unpaid PAYE income tax and national insurance contributions,
the tribunal awarded costs in the sum of # 30,500, against the commissioners because of their «serial failures to comply with the time limits in the tribunal, rules and directions».
(3) In the event the arbitration
tribunal awards costs, it shall specify the amounts of the fees and expenses so awarded or the method for the determination of those amounts.
Not exact matches
Just one case going to an employment
tribunal can run up more than # 30,000 in
costs before any
award is taken into account.
Procedural innovation is regarded as the key to controlling time and
cost, where it is increasingly likely that
tribunals will commit to a schedule for deliberations and delivery of final
awards.
According to the ICC Report,
tribunals allocated
costs according to the principle «
costs follow the event» in the majority of
awards.
Arguably, between the Insurance Act and the LAT Rules, there remains an opportunity for an additional
award to be ordered by the
tribunal in addition to the
costs outlined in rule 19.1.
Against this background, the ICC Commission's Task Force of Decisions as to
Costs has reviewed hundreds of arbitral
awards and has analysed in what manner arbitral
tribunals exercise their discretion.
Summary: The respondent in the arbitration challenged a separate
award on
costs, in which the arbitral
tribunal had ordered the respondent to reimburse the claimant for the respondent's part of...
Following that decision, the attorney general appealed to the Federal Court of Appeal, which ruled that the
tribunal did not have the authority to make a
costs award under the Canadian Human Rights Act and quashed the
tribunal's decision.
The Attorney General of Canada applied for judicial review at the Federal Court regarding the
tribunal's jurisdiction to
award legal
costs.
The purpose of a
costs award is punitive and not compensatory; such an
award is intended to have a deterrent effect and sanction conduct which negatively impacts the integrity of the
tribunal's processes.
As far as
costs awards at the
tribunal go, this was a relatively large
award.
This article suggests that a significant number of benefit appeals could be avoided if that
tribunal was given the power to
award costs against public authority parties where they have behaved unreasonably.
It sought payment by the commissioners of some of the
costs awarded by the
tribunal in its favour.
It relied on a number of factors, including that the
tribunal had
awarded costs against the commissioners because of their «serial failures to comply with the time limits in the
tribunal rules and its directions», which «hamper the administration of justice and can prejudice the other party».
In addition, the
tribunal awarded her legal
costs, in the amount of $ 47,000.
That the
tribunal did not have such a power was suggested by the commission's own interpretation of section 53: «[T] he Commission itself has consistently understood that the CHRA does not confer jurisdiction to
award costs and has repeatedly urged Parliament to amend the Act in this respect.»
It was entirely a matter of discretion whether a
tribunal awarded such
costs in any given case; and 3.
[55] Many
tribunals have the power to
award expenses, and a finding that the human rights
tribunal is entitled to
award legal
costs would surely resonate throughout federal and provincial administrative structures.
The
tribunal ultimately issued a final, nine - figure damages
award in favour of Econet, plus
costs and interest.
Several provinces have already instituted legislation enabling their respective Human Rights
Tribunals the authority to
award costs.
The arbitral
tribunal shall specify the
costs of arbitration in an
award.
In this blog, Robert Rothkopf, Managing Partner of Balance Legal Capital LLP, argues that the call for arbitration counsel to do more to encourage settlement should be complemented by
tribunals and institutions in imposing
costs consequences for losing parties in the
costs award.
In addition, we now live in a climate where
tribunals will not only strike out spurious and unreasonable claims but also make significant
costs awards against claimants engaging in such vexatious activity.»
In general, the statutory human rights system in Canada is characterized by the presence of prominent, accessible, specialized public institutions that embody and reinforce public and legislative policy against discrimination, including but not limited to administrative
tribunals with broad discretion to
award non-monetary and structural remedies, at no
cost to the individual complainant.
The arbitral
tribunal shall in the final
award or, if it deems appropriate, in any other
award, determine any amount that a party may have to pay to another party as a result of the decision on allocation of
costs.
The arbitral
tribunal has the power to take appropriate measures, including issuing an order or
award for sanctions or
costs, if a party breaches the provisions of paragraphs 6 and 7 of this article.
In the spirit of this overall duty, the FAI Rules impose a number of obligations on the arbitral
tribunal and the parties that are designed to reduce time and
costs of the proceedings, including an obligation on the arbitral
tribunal to render the final arbitral
award within nine months from the receipt of the final
award.
In the event that no agreement has been reached, the arbitral
tribunal shall make an
award of
costs on the basis that
costs should «follow the event» (i.e., the successful party will be entitled to its
costs), unless it considers such an
award inappropriate in the circumstances of the case (section 61 (2)-RRB-.
The 1996 Act provides that the
tribunal may make an
award allocating the
costs of the arbitration between the parties (section 61).
(2) In
awarding costs, the arbitration
tribunal shall take into account the principles set out in Rule 21 (2), and the failure of any party to comply with these Rules or the orders of the
tribunal.
If C rejects the offer and if C is ultimately
awarded significantly more than $ 2.5 million by the
tribunal, then C's rejection of the offer and continued pursuit of the arbitration would have been justified and the offer should have no
cost consequences.
In practice, a
tribunal may treat interim steps or applications separately when
awarding costs, potentially resulting in an unsuccessful party recovering its
costs in relation to an unnecessarily expensive and onerous interim step in the proceedings taken by the successful party.
(3) The arbitration
tribunal may make an interim order that shall be merged or addressed in the
Award when all issues, including
costs, have been determined.
(2) After the final
Award has been made, the claim has been withdrawn, a settlement has been reached or the arbitration has been abandoned, the Centre shall apply any deposits it holds to the
costs of the arbitration, including any arbitration
tribunal fees and disbursements, as well as administrative fees and expenses.
Finally, the majority held that the
tribunals»
costs awards were reasonable (para 75).
NOTE: We've previously written about
costs awards in British Columbia by disciplinary
tribunals.
Bedale Golf Club Ltd v Revenue and Customs Commissioners [2014] UKUT 99 (TCC)[2014] BVC 512 Concerning the
award of wasted
costs in the First - Tier tax
tribunal
In principle, the Commission considered that
Tribunals should be given power under the Arbitration Ordinance to
award costs against a third party funder, i.e. an adverse
costs order.
Bedale Golf Club Ltd v Revenue and Customs Commissioners [2014] UKUT 99 (TCC)[2014] BVC 512 Concerning the
award of
costs in the First - Tier tax
tribunal
R (on the application of Lonsdale) v Bar Standards Board [2014] EWHC 4353 (Admin) Whether a disciplinary
tribunal had power to make a
costs award against an unsuccessful defendant, where the
costs in question were those of the
tribunal itself
In an
award issued on May 3, 2018 the ICSID arbitration
tribunal rejected all claims brought against Kosovo and ordered the claimant to pay more than $ 2 million to Kosovo for fees and
costs incurred by Kosovo in defending against the claim.