HKIAC updates Practice Notes on Costs of Arbitrations
The Hong Kong International Arbitration Centre (“HKIAC”) has recently released two updated Practice Notes on costs of arbitration which came into effect on 1 June 2016 to supplement the provisions on costs under the 2013 HKIAC Administered Arbitration Rules (“Rules”).
In addition to the administrative fees set out in Schedule 1 of the Rules, parties to an HKIAC administered arbitration have a choice as to the determination of the tribunal’s fees – calculated either on the basis of agreed hourly rates (subject to the terms set out in Schedule 2) or on the basis of the amount involved in the dispute (subject to the terms set out in Schedule 3).
The updated Practice Notes relate to the provisions in Schedules 2 and 3 and replace the Practice Notes on Arbitral Tribunal’s Fees, Expenses, Terms and Conditions which came into effect on 1 November 2013.
The Practice Notes set out in detail HKIAC’s practice of paying fees and expenses of arbitrators, tribunal secretaries and HKIAC under the Rules. Some of the new provisions include: –
- Clause 7 which indicates the amount of HKIAC administrative fees payable where the parties withdraw or terminate their case at different stages of the arbitral proceedings; and
- Clause 8.7 which permits a party to seek a separate award from the arbitral tribunal for reimbursement of payment of deposit paid by the party on behalf of another party (if any).