Victorian Consolidated Legislation

Commercial Arbitration Act 1984 - SECT 34

Costs

34. Costs



(1) Unless a contrary intention is expressed in the arbitration agreement, the
costs of the arbitration (including the fees and expenses of the arbitrator or
umpire) shall be in the discretion of the arbitrator or umpire, who may-

   (a)  direct to and by whom and in what manner the whole or any part of
        those costs shall be paid;

   (b)  assess or settle the amount of costs to be so paid or any part of
        those costs; and



   (c)  award costs to be taxed or settled as between party and party or as
        between solicitor and client.

(2) Any costs of the arbitration (other than the fees or expenses of the
arbitrator or umpire) that are directed to be paid by an award shall, except
so far as assessed or settled by the arbitrator or umpire, be assessable in
the Court.

(3) A provision in an arbitration agreement (being an arbitration agreement
that provides for the reference of future disputes to arbitration) is void if-

   (a)  it is to the effect that a particular party, or the parties, to the
        agreement shall in any event pay their own costs of the arbitration or
        any part of those costs; or

   (b)  except in so far as it relates to a right of indemnity or a right of
        subrogation-it is to the effect that a particular party to the
        agreement shall in any event pay the costs of any other party or any
        part of those costs.

(4) If no provision is made by an award with respect to the costs of the
arbitration, a party to the arbitration agreement may, within fourteen days of
the publication of the award, apply to the arbitrator or umpire for directions
as to the payment of those costs, and thereupon the arbitrator or umpire
shall, after hearing any party who wishes to be heard, amend the award by
adding to it such directions as the arbitrator or umpire may think proper with
respect to the payment of the costs of the arbitration.

(5) Where a sum of money has been paid into the Court in accordance with rules
of court in satisfaction of a claim to which an arbitration agreement applies,
the arbitrator or umpire shall, in exercising the discretion as to costs
conferred on the arbitrator or umpire by subsection (1), take into account
both the fact that money was paid into the Court and the amount of that
payment.

(6) Where in accordance with rules of court an offer of compromise has been
made in relation to a claim to which an arbitration agreement applies, the
arbitrator or umpire shall, in exercising the discretion as to costs conferred
on the arbitrator or umpire by subsection (1), take into account both the fact
that the offer was made and the terms of the offer.



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(7) An arbitrator or umpire shall, in exercising the discretion as to costs
conferred on the arbitrator or umpire by subsection (1), take into account any
refusal or failure by a party to the arbitration agreement to comply with the
provisions of section 37.