FEES AND COSTS

Arbitrator’s fees: The parties are jointly and severally liable to pay the reasonable fees and expenses of the arbitrators: s.28 and s.64(1).

The tribunal may refuse to deliver an award to the parties except upon full payment of the fees and expenses of the arbitrators: s.56.

Costs of the arbitration: The costs of the arbitration are made up of:

  • the arbitrators’ fees and expenses;
  • the fees and expenses of any arbitral institution concerned; and
  • the legal or other costs of the parties.

The tribunal will award costs on the general principle that costs should follow the event: s.61.

The parties are free to agree what costs of the arbitration are recoverable. In the absence of such agreement the tribunal will award the recoverable costs of the arbitration on such basis as it thinks fit: s.63.

Immunity of arbitrator: An arbitrator (or an employee or agent of an arbitrator) is not liable for anything done or omitted in the discharge or purported discharge of his function as arbitrator unless the act or omission is shown to have been in bad faith:s.29.

Any liability incurred by an arbitrator by reason of his resigning is not affected by s.29.

Immunity of arbitral institutions: An arbitral or other institution or person designated or requested by the parties to appoint or nominate an arbitrator is not liable for anything done or omitted in the discharge or purported discharge of that function unless the act or omission is shown to have been in bad faith. Nor is he liable, by reason of having appointed or nominated an arbitrator, for anything done or omitted by the arbitrator in the discharge or purported discharge of his functions as arbitrator. This immunity extends to an employee or agent of the arbitral institution or person: s.74.

Enforcement of the award: An award made by the tribunal pursuant to an arbitration agreement may, by leave of the court, be enforced in the same manner as a judgment or order of the court to the same effect. Where leave is so given, judgment may be entered in terms of the award: s.66.

The court has power to order judgment to be entered in the terms of an arbitral award in a case where the award was in the form of a negative declaration: West Tankers Inc v Allianz SpA (The Front Comor) [2012] EWCA Civ 27; [2012] 2 All E.R. (Comm) 113. See also Nakanishi Marine Co Ltd v Gora Shipping Ltd [2012] EWHC 3383 (Comm).