Recovering Legal Costs in DIAC Arbitrations
Type
E-journal
Date
19 Apr 2016
Jurisdiction
Dubai
Taxonomy
Arbitration
Copyright
LexisNexis
Relevant company
Al Tamimi & Company
Analysis
The Dubai International Arbitration Centre (DIAC) is the most widely used arbitration centre in the region. It has a modern set of rules that generally work well. However a recent Dubai Court of Cassation judgment has confirmed what many believe to be a flaw in its rules: they do not grant the tribunal power to order the recovery of legal costs.
Therefore in the absence of express agreement by the parties, legal costs are not recoverable in a DIAC arbitration. This article puts this recent judgment in context and offers guidance as to how parties might still recover their legal fees in a DIAC arbitration.
Recovering Legal Costs in Arbitration Generally
A party to an arbitration will usually incur three types of costs:
Administrative fees charged by any institution administering the arbitration (such as DIAC).
Tribunal fees.
Legal fees, being those of its legal representatives and any disbursements (such as expert fees).