Summary

Source: icsid.worldbank.org

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VI. THE TRIBUNAL'S DECISION ON COSTS MUST BE ANNULLED

325. The Tribunal's decision on costs must be annulled because it is based on other annullable parts of the Award. Specifically, the Tribunal ordered the Parties to each bear half of the costs of the proceedings and bear their own legal and other costs.417 The Tribunal based its decision inter alia on the fact that: (i) Mr. Rand was successful with only some of his claims; and (ii) Mr. Rand was awarded only a small part of the damages that he claimed in the arbitration.418

326. Thus, the Tribunal's decision on costs is based on the Tribunal's decisions on jurisdiction and quantum, which are annullable for failure to state reasons and manifest excess of powers. As a result, the decision on costs must follow the same fate and be annulled as well.

327. This principle was confirmed, for example, by the ad hoc committee in MINE v. Guinea, which stated that "[t]he award of costs cannot survive the annulment of that portion of the Award with which it is inextricably linked."419 The same approach was followed by the committee in Teco v. Guatemala, where the award on costs was based on Guatemala having been partially successful on quantum. Because the committee annulled the decision on quantum, which was the basis for the tribunal's decision on costs, the tribunal's decision on costs was annulled as well.420

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