Final Award Analysis

639 Words3 Pages
A second meaning sometimes given to the term “final award” is that the award finally settles a portion of the dispute that can be separated from the remainder of the dispute but it does not necessarily terminate the arbitration or the mandate of the arbitrators to consider the remaining portions of the dispute. Such an award has all of the consequences of a final award in that it is res judicata in respect of what is contained in it, and it would be subject to set aside proceedings brought by the disappointed party or enforcement proceedings by the successful party ( 4.1.2. Partial Awards Partial awards are awards that resolve only part of the claim of the dispute. The arbitral tribunal resolves one or more of the claim submitted but not all. The decisions of the tribunal are final and binding as to the claim they deal with. The term is not defined in any arbitration rule or arbitration law, from the context it is clear that the partial awards are meant to be final awards in regard to the matters that are considered in them ( Partial awards, reserves jurisdiction to the tribunal, to determine the remaining claims in a separate award, for example, an award of damages which postpones resolution of the victorious party's claim for its costs to a further award. In a complex arbitration it may be a practical solution for the parties and for the arbitral tribunal to decide those parts of the dispute that can be clearly separated from the other parts in partial awards. There are dangers, however. Once an award has been issued, be it partial or final, it cannot be changed. What appears to be clearly separable may on later consideration turn out to be linked to a portion of the dispute that is yet to... ... middle of paper ... ...t to their original contract or as a new contract. However, practitioners advise to sign such contract only after all duties have been performed and dispute resolved. Otherwise one of the parties does not fulfill its obligations under the settlement; the other can commence anew arbitration (assuming that there is a suitable arbitration clause) or litigation. Parties are well advised to convert their settlement agreement into an award, so that way enforcement will be available through the New York convention. A typical provision is contained in the UNCITRAL Model Law, Article 30: (1)If, during arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate the proceedings and, if requested by the parties and not objected to by the arbitral tribunal, record the settlement in the form of an arbitral award on agreed terms.
Open Document