Arbitration Awards & Orders

Question 1

What are the 4 different types of awards and orders available to arbitrators?

Answer 1

Procedural orders

Interim awards and awards on different issues – which finally dispose of substantive issues, leaving the others to be decided later

Main awards – finally disposing of the arbitration

Costs awards

Question 2

What are the categories of procedural order?

Answer 2

Procedural directions – setting out a timetable for party preparation

Interim remedies – e.g. security for costs, interim payments

Conservatory measures – designed to preserve the subject-matter of the dispute, or give one side access to property in the control of the other party

Peremptory orders – usually backed by sanctions in default, used where a party fails to comply with earlier orders

Orders dismissing the arbitration – the ultimate sanction for non-compliance with the timetable laid down

Question 3

What do provisional orders do?

Answer 3

Provisional orders regulate the position of the parties during the interim stages, but do not final dispose of any of the issues.

Question 4

POWER TO MAKE INTERIM AWARDS AND AWARDS ON DIFFERENT ISSUES

Answer 4

• Unless otherwise agreed by the parties, the arbitrators can make these awards
• Unlike provisional orders, they are final and binding, on part of the dispute
• Particular powers include:
  
  • Making an award on an issue affecting the whole claim
  • Making an award relating only to a part of the claim remitted to the arbitrators
• Useful where a single issue may be disposed of swiftly, which then allows the parties to settle the rest of the dispute
• Disposing of part of the claim may avoid the need to investigate any other issue

Question 5

SETTLEMENT

Answer 5

• If the parties settle before the decision, unless otherwise agreed, the tribunal will terminate the proceedings and record the settlement in the form of an agreed award
• An agreed award must state that it is a tribunal award, and has the status and effect of any other award
• A duly authenticated award makes it possible to effect enforcement overseas under the NYC

Question 6

What are the default award provisions?

Answer 6

• award in writing and signed by all arbitrators
• should contain the reasons for the decision, unless it is agreed or the parties have agreed to dispense with reasons (dispensing means that it impossible to appeal to the HC on a point of law, and the court may not decide preliminary points of law)
• state the seat
• state the date the award was made
• state all the other details of the arbitration

Question 7

Majority decisions

Answer 7

• An odd number of arbitrators avoids deadlock
• If there is more than one member on the tribunal, usually decisions are made by majority
• If there is a chairperson, he also makes decisions
• If there is an umpire, he makes decisions only when the others cannot

Question 8

HOW WILL THE TRIBUNAL MAKE AWARD OF COSTS?

Answer 8

• Tribunal may make an award allocating costs between the parties
• Make on similar principles to those applicable in litigation, with similar factors affecting
• The main principle is that costs shall be awarded in favour of the successful party, except where this appears inappropriate
• Arbitrators will take into account factors e.g. the conduct of the parties, whether the claim has been exaggerated, the degree of C’s partial success
• If the tribunal does decide there was partial success, this is likely to be reflected by ordering the respondent to pay only a percentage of C’s costs
• But if it is not likely to be regarded as a sufficiently clear partial success, there will probably be no departure from the usual rule that the losing party pays all the successful party’s costs