Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Costs definition

What does Costs mean? In litigation, costs are the legal fees, disbursements, court fees and VAT incurred in bringing, defending or appealing a claim, and the sums a court or tribunal may order one party to pay another for those liabilities. The concept is governed by procedural rules and case law rather than a single statutory definition: England and Wales (CPR 44–47), Northern Ireland (RCJ Ord 62), Scotland (where the equivalent term is expenses), and Ireland (Legal Services Regulation Act 2015 and the Legal Costs Adjudicators). The general approach is broadly consistent, subject to local terminology and procedure. Typical features include the discretionary rule...

Interest on damages and costs in arbitration: tribunal powers, pre- and post-award interest, including AA 1996 s 49 and Late Payment of Commercial Debts (Interest) Act s 12

Published by a LexisNexis Arbitration expert

Practice notes

This Practice Note reviews the law and practice on awarding interest on Damages and Costs in international Commercial arbitration, with specific reference to the law of England and Wales and the Arbitration Act 1996 (AA 1996). It also draws on comparative guidance from investment treaty arbitration. To compare this issue across jurisdictions globally, see our International Comparator Tool.

Which law determines the award of interest in arbitration proceedings?

The decision whether to award interest, and the appropriate rate, rests with the arbitral tribunal, which must first identify the basis for awarding interest. In doing so, the tribunal will assess:

any agreement between the parties (in the arbitration agreement, the main contract, or reached later)
the terms of any applicable arbitral rules or legislation (including provisions for statutory interest)
the relevant applicable law

In practice, any express agreement by the parties will be applied. Where no agreement exists, the tribunal’s power to award interest is governed by the law of the seat of the arbitration, rather than the law governing the underlying contract...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Vivek Kapoor

39 Essex Chambers

Vivek Kapoor is a barrister and arbitrator at 39 Essex Chambers. He is specialist advocate with a practice in international arbitration and commercial litigation. He is recognised for his expertise in high-value, multijurisdictional cases related to energy, infrastructure and construction, natural resources, mining and commodities, banking and financial services, civil fraud and asset tracing, sanctions, investor-state dispute settlement and public international law. He is described in leading legal directories as “an excellent litigator”, “an expert in law”, “an excellent advocate” and “a great strategic decision maker”. Clients rate “his ability to find novel legal solutions to some of the most difficult situations is remarkable” and that he “thinks of every scenario for a case and prepares for each one, including complex and difficult ones”. His “ability to make simple arguments explaining complex legal points in both law and fact” is described as “a case...

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...