LEGAL PRINCIPLE: ARBITRATION LAW — Arbitral Awards — Interest — Power to Award Interest — Arbitrator’s Responsibility to Award Interest in Award
PRINCIPLE STATEMENT
It is the responsibility of the arbitrator to award interest and costs on the date of the award; the court has no jurisdiction to add interest when enforcing the award if the award is silent.
RATIO DECIDENDI (SOURCE)
Per Katsina-Alu, JSC, in Ras Palgazi Construction Company Limited v. FCDA (2001) NLC-4596(SC) at pp. 13–14; Paras B–C.
"The issues in controversy between the parties were determined by the arbitrator. His award was not challenged. Therefore the award became and was a binding determination of the matters between the parties. In other words, the award constituted a final judgment on all issues referred to the arbitrator. It was therefore the responsibility of the arbitrator to award interest and costs, on the date of the award. The only jurisdiction the court has in regard to an award is to enforce it upon an application if the validity of the award is not in doubt."
EXPLANATION / SCOPE
The arbitrator must decide all issues, including interest and costs, in the award. The court cannot add interest or costs when enforcing the award if the award is silent. The court’s role is limited to enforcement, not supplementation. The principle preserves the finality of arbitration. The parties cannot go to court to obtain relief the arbitrator should have granted. If the award does not include interest, the court will not add it. The losing party cannot complain about the absence of interest if they did not challenge the award. The arbitrator’s failure to award interest is a matter for setting aside or remission, not for the court to cure at enforcement. The court respects the arbitrator’s decision as final.
