London Arbitration 3/19

Arbitration – Costs – Tribunal indicating in original award that it considered outcome to be a draw and that each side should bear own costs – Tribunal subsequently being informed of attempts to settle – Owners had made settlement offer marked “without prejudice” but omitting “save as to costs” – Charterers had rejected offer – Tribunal’s original award was in favour of charterers but in lesser amount than that offered by owners – Owners inviting tribunal to reconsider order for costs – Whether tribunal entitled to take account of owners’ offer in determining incidence of costs – Appropriate order for costs

Followingthe tribunal’s award in London Arbitration 22/18 summarised at (2018) 1017 LMLN 2, the parties agreed that the sum of US$348.42 was due to the charterers, but they raised a new issue relating to costs. Unbeknown to the tribunal, during the course of the parties’ submissions, there had been an attempt to settle the dispute.