Post-Hearing Issues In International Arbitration - Chapter 3 - Post-Award Interest: The Position of the French Courts in Banque Arabe et Internationale d’Investissement v. The Inter-Arab Investment Guarantee Corporation
Christopher Seppälä is a Partner of White & Case LLP, resident in Paris. Mr. Seppälä has more than thirty-five years of experience representing parties in international arbitrations under the rules of the International Chamber of Commerce (ICC), the International Centre for the Settlement of Investment Disputes (ICSID), the London Court of International Arbitration (LCIA) the Japan Commercial Arbitration Association and the Cairo Regional Centre, as well as ad hoc arbitrations under the UNCITRAL and other arbitration rules. He has represented multi-national corporations and banks, as well as sovereign States or their State-owned entities, in international arbitrations. He has also served as chairman of the tribunal or co-arbitrator in numerous arbitrations. Mr. Seppälä is Vice-President Emeritus of the International Court of Arbitration of the ICC and recipient of the Louis Prangey Award from the Fédération Internationale des Ingénieurs-Conseils (“FIDIC”), the International Federation of Consulting Engineers. He is admitted to the New York and Paris Bars and is a graduate of Harvard College and Columbia Law School.
In international arbitration, it is usual for the claimant to request that, in addition to its claim for damages, it be awarded interest from the date of the breach of contract (assuming a contract action) or the date of commencement of arbitration or of an award until payment of the award in full. It is also usual for the arbitral tribunal to direct the losing party to pay such interest at an appropriate rate, which may be simple interest or interest compounded monthly or on some other basis.1
However, what happens in a case where:
1) a claimant claims post-award, as well as pre-award, interest from the arbitral tribunal,
2) the tribunal, while awarding the claimant damages, including pre-award interest, omits to award post-award interest, and
3) thereafter, the respondent refuses to pay the award voluntarily resulting, in theory at least, in a substantial postaward interest claim against the respondent?
May the claimant still claim post-award interest and, if so, from whom? From the same arbitral tribunal or from a new one?
Table of Contents:
Chapter 3 Post-Award Interest: the Position of the French Courts in Banque Arabe et Internationale d'Investissement v. The Inter-Arab Investment Guarantee Corporation