Chirag Karia QC of Quadrant Chambers has secured a landmark ruling from the Commercial Court that an arbitral tribunal has the power to award litigation funding costs (including uplift and success fees paid to a professional litigation funder) as “other costs” under section 59(1)(c) of the Arbitration Act 1996. 

The sole arbitrator in the ICC reference below had ruled that Chirag’s client (Norscot) was entitled to recover the fees it had paid to its professional litigation funder, being the larger of 300% of the costs advanced by the funder or 35% of the sum recovered by Norscot, from the respondent in that reference (Essar). Upon the hearing of Essar’s challenge under section 68(2)(b) of the Arbitration Act 1996, the Commercial Court held, inter alia, that arbitral tribunals have the power to award litigation funding costs and fees as “other costs” under section 59(1)(c) of the 1996 Act. 

Chirag was assisted by Nicholas Bacon QC of 4 New Square in the case.  See, Essar Oilfields Services Ltd (Mauritius) v Norscot Rig Management Pvt Ltd (Mauritius).