2016 | Octubre 3
The English court has refused a challenge under s68(2)(b) of the Arbitration Act 1996 (theAct) and held that a sole arbitrator did not exceed his powers in including the costs of third party funding within a costs award.
The Award before the court in these proceedings was the Fifth Partial Award. In that Award the arbitrator found that Essar was liable to Norscot for some US$4m in costs awarded on an indemnity basis. The costs award included the £1.94m costs of litigation (also known as third party) funding which Norscot had obtained in order to bring the arbitration. The Award was clarified by addendum on 3 March 2016 when the arbitrator confirmed the provisions of the Act upon which he had relied when making his ruling to be s59(1) and s63(3).