Page images
PDF
EPUB

Costs of lay arbitrator.

Where costs are to abide event.

of the reference. They are usually paid when the award is taken up, and, as we have seen, the arbitrator can refuse to give up the award until such charges are paid. If the charges of the arbitrator are excessive, the costs of the award are the costs allowed on taxation; and if the arbitrator be a counsel, his charges are usually passed without question.

In the case of a lay arbitrator his charges are not usually objected to by the taxing master, except when reasonable grounds of complaint as to the amount are self-evident (Webb v. Wyatt, 5 W. R. 570). If a reference is by consent of the parties, and the submission gives the arbitrator power over the costs of the reference, he has also power as to awarding costs of the award (Walker v. Brown, 51 L. J. Q. B. D. 424). If a cause is referred, and the submission makes provision that the costs shall either abide the event or be at the discretion of the arbitrator, the costs (if there is no qualifying expression) will include the costs of the reference as well as the award, also the costs of the cause (Wood v. O'Kelly, 9 East, 436); in other words, all the costs of the action.

Where by the terms of the submission the costs are to abide the event, the arbitrator has no power over them; but the party in whose favour the award is given will be entitled to them; and if the award be partly in favour of one party, and partly in favour of the other, each party will have to pay his own. costs, even though one of the parties to the award and by virtue of it has a substantial advantage over

the other (Gore v. Baker, 4 E. & B. 470). Where an action and all matters in difference were referred, and the costs of the reference and award were to abide the event of the award, the arbitrator awarded a sum of money to the plaintiff in respect of the action, and found for the defendant as to the matter in difference for 61. due from the plaintiff to the defendant, and directed payment of the amount; the Court held that the plaintiff was not entitled to the costs of the reference and award, as the arbitrator had decided in favour of each party. In this case, as neither party had failed, but both had partially succeeded, neither party could be called upon to pay the whole costs, the award not being completely decisive (Reynolds v. Harris, 28 L. J. C. P. 26). Where a cause is referred, and the costs of the reference are in the discretion of the arbitrator, and the costs of the cause only are to abide the event, the arbitrator may deal with the former at his discretion (Brown v. Nelson, 13 M. & W. 397); and where a cause is referred, the costs of the reference are not usually costs in the cause, which latter only include the costs up to the time of reference (Macintosh v. Blyth, 8 Moore, 211). Where a verdict is taken subject to a reference of the action to an arbitrator, who has to certify for whom and for what amount the verdict shall be entered, and the costs of the action and the reference are to abide the event, the costs of the reference are costs in the cause, and follow the legal event of the verdict (Deere v. Kirkhouse, 20 L. J. Q. B. 195). In a reference of accounts, including accounts which are the subject of an action, the party

Costs of lay arbitrator.

Where costs

are to abide event.

of the reference. They are usually paid when the award is taken up, and, as we have seen, the arbitrator can refuse to give up the award until such charges are paid. If the charges of the arbitrator are excessive, the costs of the award are the costs allowed on taxation; and if the arbitrator be a counsel, his charges are usually passed without question.

In the case of a lay arbitrator his charges are not usually objected to by the taxing master, except when reasonable grounds of complaint as to the amount are self-evident (Webb v. Wyatt, 5 W. R. 570). If a reference is by consent of the parties, and the submission gives the arbitrator power over the costs of the reference, he has also power as to awarding costs of the award (Walker v. Brown, 51 L. J. Q. B. D. 424). If a cause is referred, and the submission makes provision that the costs shall either abide the event or be at the discretion of the arbitrator, the costs (if there is no qualifying expression) will include the costs of the reference as well as the award, also the costs of the cause (Wood v. O'Kelly, 9 East, 436); in other words, all the costs of the action.

Where by the terms of the submission the costs are to abide the event, the arbitrator has no power over them; but the party in whose favour the award is given will be entitled to them; and if the award be partly in favour of one party, and partly in favour of the other, each party will have to pay his own costs, even though one of the parties to the award and by virtue of it has a substantial advantage over

the other (Gore v. Baker, 4 E. & B. 470). Where an action and all matters in difference were referred, and the costs of the reference and award were to abide the event of the award, the arbitrator awarded a sum of money to the plaintiff in respect of the action, and found for the defendant as to the matter in difference for 61. due from the plaintiff to the defendant, and directed payment of the amount; the Court held that the plaintiff was not entitled to the costs of the reference and award, as the arbitrator had decided in favour of each party. In this case, as neither party had failed, but both had partially succeeded, neither party could be called upon to pay the whole costs, the award not being completely decisive (Reynolds v. Harris, 28 L. J. C. P. 26). Where a cause is referred, and the costs of the reference are in the discretion of the arbitrator, and the costs of the cause only are to abide the event, the arbitrator may deal with the former at his discretion (Brown v. Nelson, 13 M. & W. 397); and where a cause is referred, the costs of the reference are not usually costs in the cause, which latter only include the costs up to the time of reference (Macintosh v. Blyth, 8 Moore, 211). Where a verdict is taken subject to a reference of the action to an arbitrator, who has to certify for whom and for what amount the verdict shall be entered, and the costs of the action and the reference are to abide the event, the costs of the reference are costs in the cause, and follow the legal event of the verdict (Deere v. Kirkhouse, 20 L. J. Q. B. 195). In a reference of accounts, including accounts which are the subject of an action, the party

Effect of arbitrator having power to

award costs.

in whose favour the award is given is entitled to the payment of his costs (Hemsworth v. Bryan, 1 C. B. 131). If an arbitrator has power to award costs at his discretion, he may order either of the parties to pay the whole of the costs or divide them equally between both parties, or he may make the successful party pay the whole amount. He may also direct an infant party to the submission to pay the whole of the costs (Proudfoot v. Boyle, 15 M. & W. 198). But where the reference contained this clause-that "the costs of the agreement of reference, and of the reference and award, shall be in the discretion of the arbitrator and be defrayed as he shall direct," and the arbitrator in his award directed that the defendant should pay a certain sum to the plaintiff, but the award was silent as to costs, it was held that the award was void (Richardson v. Worsley, 19 L. J. Ex. 317). It appears that if the arbitrator award each of the parties to a reference to pay half the costs inhalf the costs. curred, one of the parties may pay all the charges, and by so doing obtain the award from the arbitrator, and afterwards, when he wishes to recover from the other party the amount of fees that he has overpaid, he has the same remedy against him as he would have had if the opposite party had refused to obey any other part of the award; but the objection to awarding so important a matter as costs in that loose way are manifold, and the safest way is to state clearly what proportion of costs of the reference and of the award shall be paid by each of the parties (Bates v. Townley, 2 Ex. R. 152). In order also to avoid any objection likely to arise on this point, it is

Effect of

awarding each party to pay

« EelmineJätka »