chapter  20
20 Pages

Arbitrators’ fees and expenses

ByClare Ambrose, Karen Maxwell, Michael Collett QC

Arbitrators are entitled to be paid for their services. This entitlement will usually arise from contract: the arbitrator has a right to fees agreed by the parties. It is surprisingly common in maritime arbitrations for arbitrators to be appointed without any express agreement as to fees. An agreement on fees may be made personally with the arbitrator or by reference to arbitration rules. It need not be in writing to be enforceable, but the 1996 Act applies only to agreements on fees which are in writing. In the absence of agreement, an arbitrator can probably insist upon interim payment of expenses incurred since these could be treated as expenses incurred on behalf of the parties. Settlement agreements which provide for payment of costs will normally be treated as including the arbitrators’ fees and expenses but it is prudent to make express provision for them. A substitute arbitrator should be appointed by the original appointer.