Contributed By Norburg & Scherp Advokatbyrå
The cost of the arbitration consists of the compensation to the arbitrators for work and expenses, the parties’ costs for counsel’s fees, expenses and its own costs, and, where applicable, fees to the arbitration institute.
The parties shall be jointly and severally liable to pay reasonable compensation to the arbitrators for work and expenses. However, where the arbitrators have stated in the award that they lack jurisdiction to determine the dispute, the respondent shall be liable to make payment only insofar as required due to special circumstances. In the final award, the arbitrators may order the parties to pay compensation to them, together with interest accrued from one month following the date of the announcement of the award (see Section 37 of the Arbitration Act).
Unless otherwise agreed by the parties, as part of the final award and upon the request of a party, the arbitrators may order the opposing party to pay compensation for the party’s costs and determine the manner in which the compensation to the arbitrators shall be finally allocated between the parties. The arbitral tribunal may also award interest, if a party has so requested (see Section 42 of the Arbitration Act).
The Arbitration Act does not contain any provisions on how the cost for the arbitration should be distributed, but as a general rule the costs are distributed in accordance with the principle that the costs follow the event, ie the losing party will be ordered to compensate the winning party’s reasonable legal costs, including costs relating to the work and expenses of the arbitral tribunal and, if applicable, the fees of the arbitral institution. However, it should be noted that the parties will remain jointly and severally liable to pay reasonable compensation for the works and expenses of the arbitrators in relation to the arbitral tribunal.