Commentary on Sections Schedule 1 – Scottish Arbitration Rules Rule 65 – Limitation of recoverable arbitration expenses Default
222.Rule 65 is a default rule which gives the tribunal the power to make a provisional or part award to cap a party’s liability for arbitration expenses – a power which could for instance be used if one of the parties has enough financial resources that they could take advantage of their financial position against another party with more limited resources. In this way, even if the expenses exceed the specified amount, the amount recoverable from that party can be capped.
223.Rule 65(2) provides that an award imposing a cap on expenses must be made in advance of the expenses being incurred.