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CHAPTER 20 Arbitrators’ fees and expenses

London Maritime Arbitration

Page 334


Arbitrators’ fees and expenses

A. Introduction

20.1 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. For example, the LMAA Terms do not fix fees other than appointment and booking fees. Even if there is no express agreement on fees, an arbitrator is entitled by statute to claim from either party such reasonable fees and expenses as are appropriate in the circumstances.1 The arbitrator is entitled to decide in his award the level of fees and expenses recoverable by him unless the parties have agreed otherwise and he can withhold the award pending payment.2 It is usual practice for the tribunal to make its assessment of what are reasonable fees, and request payment as a condition for releasing the award. Arbitrators are also entitled to claim expenses incurred in the course of the arbitration, for instance the cost of accommodation for a hearing.

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