24 JULIAN D. M. LEW
Interest on Money Awards in International
A. IntroductionOne of the most common factors in arbitration is the request by one or both
parties for interest to be added to the amount of their claims. This exists
regardless of the nature or character of the arbitration: whether institutional or ad hoc, wherever the siège or seat of the arbitration, and whatever
the subject matter. If money is claimed, whether because of non-payment or
compensation for breach or contract or defective performance, interest is
sought to be added, and arbitrators invariably accept and add an amount of
interest to the substantive amount awarded. Increasingly, in recent years,
the amounts involved in international arbitrations are extremely high. International transactions now involve enormous amounts, and are major
sources of national state income, i.e., invisible exports. These transactions
include not only the purchase and sale of goods, and shipping and carriage
of goods by air, sea, and land, but financing, joint ventures, investments,
construction contracts, the purchase or licensing of intellectual property,
turn-key contracts, etc.The increase in the size of international arbitrations is well illustrated in
the statistics of the International Court of Arbitration of the International
Chamber of Commerce ( ICC). In 1995 the percentages of cases exceeding
various amounts were as follows:
|(i) under US$1m, 3.8%;|
|(ii) exceeding US$1m, 37.1%;|
|(iii) exceeding US$10m, 10.7%;|
|(iv) exceeding US$50m, 2.7%.|
As a result of these increased amounts and the fact that arbitration
proceedings are often only started after lengthy negotiations have broken
down, and that they frequently last for years, the issue whether and on
which basis interest is awarded can have a crucial impact. Interest of double____________________
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: Making Commercial Law:Essays in Honour of Roy Goode.
Contributors: Ross Cranston - Editor, Royston Miles Goode - Author.
Publisher: Oxford University.
Place of publication: Oxford.
Publication year: 1997.
Page number: 543.
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