Arbitration - Awarding Damages, Interest, Part Awards and Provisional (Interim) Awards

Question 1

Before the Arbitration (Scotland) Act 2010, was the arbitrator’s power to award damages recognized under common law?

Answer 1

Answer: No, the arbitrator’s power to award damages was not recognized under common law before the 2010 Act.

Question 2

Which rule of the Arbitration (Scotland) Act 2010 deals with the tribunal’s authority to award interest in its decisions?

Answer 2

Answer: Rule 50 of the 2010 Act deals with the tribunal’s authority to award interest.

Question 3

What is a part award in the context of arbitration?

Answer 3

Answer: A part award is a final decision made by an arbitrator that addresses a portion of the issues in the dispute but cannot be changed.

Question 4

Before the 2010 Act, how did parties involved in arbitration ensure that the arbitrator had the power to make interim awards?

Answer 4

Answer: To ensure the arbitrator had the power to make interim awards, parties would specifically grant this power to the arbitrator in their agreement.

Question 5

Which rule of the Arbitration (Scotland) Act 2010 empowers the tribunal to make provisional awards?

Answer 5

Answer: Rule 53 of the 2010 Act empowers the tribunal to make provisional awards.

Question 6

Which rule of the Arbitration (Scotland) Act 2010 grants the arbitration tribunal the authority to issue an award that orders a party to pay damages?

Answer 6

Answer: Rule 48 of the 2010 Act grants the arbitration tribunal the authority to issue an award that orders a party to pay damages.

Question 7

What change did Rule 54 of the Arbitration (Scotland) Act 2010 bring to part awards?

Answer 7

Answer: Rule 54 of the 2010 Act introduced the concept of part awards, allowing the tribunal to make multiple awards addressing some, but not all, of the matters in a dispute.

Question 8

In cases where parties do not agree on a specific currency for damages, who has the authority to decide the appropriate currency for payment under the Arbitration (Scotland) Act 2010?

Answer 8

Answer: If the parties do not agree on a specific currency, the tribunal has the authority to decide the appropriate currency for the payment.

Question 9

What is the main purpose of a provisional (interim) award in arbitration?

Answer 9

Answer: The main purpose of a provisional (interim) award is to grant temporary relief during the arbitration process, particularly in cases involving urgent matters, the preservation of assets, or situations where parties need temporary measures while waiting for the final award.

Question 10

How has the Arbitration (Scotland) Act 2010 affected the overall arbitration process in Scotland?

Answer 10

Answer: The Arbitration (Scotland) Act 2010 has provided a more structured and comprehensive framework, increased clarity, efficiency, and flexibility in the arbitration process, and made it a more attractive dispute resolution method for parties in Scotland.

Question 11

Before the Arbitration (Scotland) Act 2010, how did parties confer the power to award damages to the arbitrator?

Answer 11

Answer: Parties had to expressly confer the power to award damages to the arbitrator, typically through the arbitration clause in the contract, the Deed of Appointment or Submission, or by using relevant rules such as the Scottish Arbitration Code.

Question 12

In the case of Apollo Engineering v James Scott, what was suggested regarding an arbitrator’s power to make part awards?

Answer 12

Answer: The case suggested that an arbitrator has an implied power to make part awards under common law.

Question 13

How does Rule 50 of the Arbitration (Scotland) Act 2010 address the calculation of interest in an award?

Answer 13

Answer: Rule 50 states that interest should be calculated according to the parties’ agreement or, if there is no agreement, as determined by the tribunal.

Question 14

How has the introduction of part awards in Rule 54 of the Arbitration (Scotland) Act 2010 affected the handling of complex disputes in arbitration?

Answer 14

Answer: The introduction of part awards has provided a more systematic approach to dealing with complex disputes that may require separate determinations on different issues, contributing to the efficiency of the arbitration process.

Question 15

What is the key difference between a part award and a provisional (interim) award in arbitration?

Answer 15

Answer: A part award is a final decision that addresses a portion of the issues in the dispute and cannot be changed, while a provisional (interim) award is a temporary decision that can be changed or withdrawn later by another interim or final award.

Question 16

What were the determining factors for an arbitrator to deal with interest, the rate at which interest runs, and the date from which interest runs as an arbitrator’s award before the Arbitration (Scotland) Act 2010?

Answer 16

Answer: Before the 2010 Act, the determining factors included the contract or deed of submission, the contractual or agreed rate of interest, and the arbitrator’s discretion considering all relevant circumstances.

Question 17

Under Rule 50 of the Arbitration (Scotland) Act 2010, can the tribunal make different interest provisions for different amounts?

Answer 17

Answer: Yes, the tribunal can make different interest provisions for different amounts under Rule 50.

Question 18

How has the Arbitration (Scotland) Act 2010 contributed to the attractiveness of arbitration as a dispute resolution method in Scotland?

Answer 18

Answer: The 2010 Act has contributed to the attractiveness of arbitration in Scotland by providing a more structured and comprehensive framework, increasing clarity, efficiency, and flexibility in the arbitration process, and addressing various aspects such as awarding damages, interest, part awards, and provisional awards.

Question 19

What is the significance of the Arbitration (Scotland) Act 2010 in terms of the common law-based system of arbitration in Scotland?

Answer 19

Answer: The Arbitration (Scotland) Act 2010 replaced the previous common law-based system with a more structured and comprehensive statutory framework, providing greater clarity and consistency in the arbitration process.

Question 20

Under Rule 54 of the Arbitration (Scotland) Act 2010, what must a part award clearly state?

Answer 20

Answer: Under Rule 54, a part award must clearly state the matters to which it pertains.

Question 21

Can a part award be changed after it has been issued by an arbitrator?

Answer 21

Answer: No, a part award is a final decision and cannot be changed once issued by the arbitrator.

Question 22

How has the Arbitration (Scotland) Act 2010 affected the need for parties to expressly grant the arbitrator the power to award damages?

Answer 22

Answer: The 2010 Act, through Rule 48, eliminated the need for parties to expressly grant the arbitrator the power to award damages by providing the arbitration tribunal the authority to issue an award ordering a party to pay damages.

Question 23

If parties do not agree on the interest rate for an award, how does Rule 50 of the Arbitration (Scotland) Act 2010 address the issue?

Answer 23

Answer: If parties do not agree on the interest rate, Rule 50 states that the tribunal can determine the interest rate based on its discretion.

Question 24

Under the Arbitration (Scotland) Act 2010, how can the introduction of provisional awards be beneficial in cases involving urgent matters or the preservation of assets?

Answer 24

Answer: The introduction of provisional awards allows parties to seek interim relief during the arbitration process, which can be particularly useful in cases involving urgent matters or the preservation of assets, as temporary measures can be implemented while waiting for the final award.

Question 25

What was the main source of confusion regarding arbitrators’ ability to make interim awards before the Arbitration (Scotland) Act 2010?

Answer 25

Answer: The main source of confusion was the lack of clarity in common law regarding whether an arbitrator had the authority to make interim awards.

Question 26

What is the main difference between the arbitration landscape in Scotland before and after the implementation of the Arbitration (Scotland) Act 2010?

Answer 26

Answer: The main difference is that the 2010 Act consolidated and modernized the arbitration landscape in Scotland, providing a more structured and comprehensive framework as opposed to the previous common law-based system.

Question 27

What types of relief can be granted by a tribunal on a provisional basis under Rule 53 of the Arbitration (Scotland) Act 2010?

Answer 27

Answer: Under Rule 53, the tribunal can grant any relief on a provisional basis that it has the power to grant permanently.

Question 28

How does the Arbitration (Scotland) Act 2010 address situations where parties do not agree on a specific currency for payment of damages?

Answer 28

Answer: The 2010 Act states that if parties do not agree on a specific currency, the tribunal has the authority to decide the appropriate currency for the payment.

Question 29

Before the Arbitration (Scotland) Act 2010, what was the recommended approach to ensure an arbitrator had the power to make interim awards?

Answer 29

Answer: The recommended approach was for parties involved in arbitration to specifically grant the arbitrator the power to make interim awards in their agreement.

Question 30

What is one key advantage of the Arbitration (Scotland) Act 2010 in terms of handling complex disputes?

Answer 30

Answer: One key advantage is the introduction of part awards under Rule 54, which allows the tribunal to make multiple awards addressing some, but not all, of the matters in a dispute, contributing to the efficiency of the arbitration process in complex disputes.