General Distributors Ltd v Casata Ltd

Casata Limited appealed against a decision of the Court of Appeal which had remitted to the arbitral tribunal the question of the allocation of costs between the parties. The appeal was dismissed. The arbitral tribunal was found to have had power to make an additional award as to claims presented in the arbitral proceedings but omitted from the award, under art 33(3) of the First Schedule to the Arbitration Act 1996. The tribunal was found to have failed in its duty to exercise its discretion as to costs before delivering a final award, which was the first award. The second award, which determined the costs, provided a valid remedy for the tribunal's error. The award on costs was validly made as an additional award under art 33(3) of the First Schedule to the Arbitration Act 1996. The appeal was dismissed. The orders made by the Court of Appeal and High Court insofar as they concerned the award of costs made by the arbitral tribunal on 28 April 2003 were vacated. The Court made a declaration that the award on costs made by the arbitral tribunal on 28 April 2003 was validly made as an additional award under art 33(3) of the First Schedule to the Arbitration Act 1996 and an order reinstating that award. All questions of costs in all Courts were reserved to be determined if necessary following written submissions.