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Results: 4 Answers
International Arbitration
10.
Costs
10.1
How will the tribunal approach the issue of costs?
 
Hong Kong
Under Section 74 of the Arbitration Ordinance (AO), an arbitral tribunal may include in an award directions concerning the costs of the arbitration proceedings (including the fees and expenses of the tribunal). The tribunal may direct by whom, to whom and in what manner the costs of the arbitration proceedings are to be paid.

The tribunal is expected to adopt the normal common law approach to the recovery of costs. However, the tribunal is not obliged to follow the scales and practices adopted by the court on taxation when assessing the amount of costs (other than the fees and expenses of the tribunal) (Section 74(6) of the AO). The tribunal must allow only costs that are reasonable and (unless otherwise agreed by the parties) may allow costs incurred in the preparation of the proceedings before the start of the arbitration (Section 74(7) of the AO).

Unless otherwise agreed by the parties, the tribunal may direct that the recoverable costs of arbitral proceedings be limited to a specified amount (Section 57 of the AO).

For more information about this answer please contact: Nick Gall from Gall
10.2
Are there any restrictions on what the parties can agree in terms of costs in an arbitration seated in your jurisdiction?
 
Hong Kong
A provision of an arbitration agreement to the effect that the parties or any of the parties must pay its own costs in respect of arbitral proceedings arising under the agreement is void (Section 74(8) of the AO); but this is not void if it is part of an agreement to submit to arbitration a dispute that arose before the agreement was made.

The parties may agree that the costs of the arbitration proceedings are to be taxed by the court (Section 75).

For more information about this answer please contact: Nick Gall from Gall
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