ABSTRACT
Article 78 CISG states that ‘If a party fails to pay the price or any other sum that is in arrears, the other party is entitled to interest on it’. Under Art 78 CISG, payable interest begins to accrue on the date from which the sum is due.173 The first installment of $2,325,000 fell due on 18 April 2000, the date on which BOBBINS’ consultants certified the successful installation and commissioning tests.174 The sum of $930,000 fell due on 10 August 2000, upon completion of three months satisfactory performance of the equipment.175 Therefore, BOBBINS is compelled to pay INVESTMENT interest on the installment of $2,325,000 from 18 April 2000 and interest on the installment of $930,000 from 10 August 2000 until it makes payment to INVESTMENT. In accordance with Procedural Order No 3, issued on 8 November 2001, this Memorandum need not deal with the rate of interest that BOBBINS must pay INVESTMENT176
Article 31 AAA Rules provides procedural guidelines for the allocation of costs between the parties to an arbitration. This Article states that The Tribunal may apportion such costs among the parties if it determines that such apportionment is reasonable, taking into account the circumstances of the case’. Apart from the fees and expenses of the arbitrators and the expenses incurred by the administrator and the Tribunal, under Art 31(d), the Tribunal is also allowed to award to the successful party the costs of their legal representation.177 The failure of BOBBINS to meet its obligations with regards to payment caused the dispute that has led to this arbitration.178 In the interests of reasonableness, under Art 31 AAA Rules, BOBBINS should pay all costs of the Tribunal. In addition, in accordance with Art 31(d) AAA Rules, BOBBINS should bear INVESTMENT’S legal costs. In accordance with Procedural Order No 3, this memorandum need not address the calculation or apportionment of the costs of arbitration.179
