P&K Insights: Cost Award or Not, that is the Question

Review of Judgment by Dubai Court of Cassation on the Recovery of Legal Fees in an ICC Arbitration

Can a cost award bestow legal fees upon the successful party? Of course – one might think so. After all, that’s one of the key reasons in seeking a cost award.

This seemingly obvious issue, however, was recently put in issue before the Dubai Court of Cassation in Commercial Case No. 756/2024.

In a judgment in late 2024 considering a request to set aside an ICC arbitral award, the Dubai Court of Cassation overturned the Court of Appeal’s decision that an arbitral tribunal has no power to award legal fees, and confirmed that arbitral tribunals are authorized to award parties their legal costs.

Jim Morrison, Mino Han and Célia Guignet explore the issues arising in this case note.