Arbitral awards record the decisions reached by arbitral tribunals in regard to procedural and substantive issues raised in the arbitration. They are the way the arbitrators communicate their reasoning and findings to the parties, and therefore are always to be made in writing.
Awards may be interlocutory, interim, partial or final in nature.
- Interlocutory Awards deal with preliminary issues relevant to the claims of the parties, but not with the claims themselves. It is, for instance, the case of deciding on the applicable law, before deciding on the merits of the dispute. It is also the case of an award which decides solely on the jurisdiction of the tribunal to carry on with the arbitration.
- Interim Awards grant provisional or interim relief. These awards are subject to further revision by the arbitral tribunal and are only in force until a final decision is made in regard to the relevant claim.
- Partial Awards solve only a part of the claims submitted by the parties, leaving other claims to be dealt with in the course of the arbitration. Once a partial award is rendered, the arbitration will carry on in regard to the claims not dealt with in it. Partial awards are used where the parties or the tribunal decide to bifurcate the proceedings, for instance, to first deal with liability, and then eventually deal with the quantum of damages or compensation to be paid.
- Final Awards are rendered at the end of the arbitration proceedings. They dispose of all claims of the parties that have not been already dealt with in a previous partial award. These awards are final and binding. They can be made enforceable through exequatur proceedings before the state courts.
Finally, where the parties reached a settlement during the course of the arbitration, they may request the arbitrators to record the terms of their agreement in the form of an Award by Consent. The advantage of an award by consent is it that it provides a higher degree of enforceability than a simple settlement agreement – awards by consent are capable of enforcement just as any final award.
CONTACTS FOR THIS DISPUTE RESOLUTION METHOD:
