Additional Awards Request Procedure
Additional Awards Request Procedure in Arbitration
1. Introduction
In arbitration proceedings, the arbitral tribunal usually resolves all claims presented by the parties through a final arbitral award. However, situations may arise where the tribunal fails to decide certain claims or issues that were properly submitted by the parties. To address this problem, arbitration laws allow parties to request an additional award.
An additional award is a supplementary decision issued by the arbitral tribunal after the final award in order to resolve claims that were omitted or not decided in the original award. This procedure ensures completeness and fairness in the arbitration process.
Many arbitration frameworks, including the **UNCITRAL Model Law on International Commercial Arbitration and the **Arbitration Act 1999 (Nepal), recognize the possibility of requesting an additional award.
2. Meaning of Additional Award
An additional award is a decision made by the arbitral tribunal after the final award when it discovers that certain claims submitted during arbitration were not addressed or determined.
Key characteristics include:
Issued after the final award
Addresses omitted claims
Forms part of the original arbitral decision
Has the same legal effect as the final award
3. Purpose of Additional Awards
The additional award mechanism exists to:
Ensure completeness of the arbitral decision
Avoid unnecessary court litigation
Correct omissions by the arbitral tribunal
Protect the rights of parties whose claims were overlooked
Maintain efficiency and finality of arbitration
Without this procedure, parties might need to initiate new arbitration proceedings, which would increase time and costs.
4. Legal Basis for Additional Awards
Under most arbitration laws, a party may request an additional award when:
A claim was presented during arbitration
The tribunal failed to address or decide the claim
The request is made within the prescribed time limit
Typically, arbitration statutes allow such requests within 30 days from receipt of the award.
If the tribunal finds the request justified, it will issue an additional award within a specified time period, usually about 60 days.
5. Procedure for Requesting an Additional Award
Step 1: Identification of Omitted Claim
After receiving the arbitral award, a party reviews the decision to determine whether the tribunal failed to address any claim or issue submitted during arbitration.
The omitted matter must be a claim that was properly raised and argued during the proceedings.
Step 2: Submission of Request
The party seeking an additional award must submit a written request to the arbitral tribunal.
The request generally includes:
Identification of the omitted claim
Explanation of why the claim was submitted earlier
Request for the tribunal to issue an additional award
Step 3: Notification to the Other Party
The tribunal usually informs the other party about the request. The opposing party may submit comments or objections regarding the request.
This step ensures compliance with procedural fairness and natural justice.
Step 4: Tribunal Examination
The arbitral tribunal examines whether:
The claim was actually submitted during arbitration
The claim was omitted from the final award
The request was filed within the prescribed time limit
If the tribunal determines that the request is valid, it proceeds to issue an additional award.
Step 5: Issuance of Additional Award
If justified, the tribunal issues an additional award deciding the omitted claim.
The additional award must:
Be in writing
Be signed by the arbitrators
Contain reasoning and findings
Be delivered to both parties
Once issued, the additional award becomes part of the original arbitral award and carries the same legal authority.
6. Time Limits for Additional Award Requests
Most arbitration laws prescribe strict time limits.
Typical rules include:
Request must be filed within 30 days of receiving the award
Tribunal must decide the request within 60 days
Failure to comply with these time limits may prevent the issuance of an additional award.
7. Distinction from Correction or Interpretation of Awards
| Aspect | Additional Award | Correction | Interpretation |
|---|---|---|---|
| Purpose | Decide omitted claims | Correct clerical errors | Clarify meaning of award |
| Nature | Substantive decision | Technical correction | Explanation |
| Effect | Adds new determination | Fixes mistakes | Clarifies existing decision |
Thus, additional awards address substantive omissions, unlike corrections or interpretations.
8. Judicial Approach to Additional Awards
Courts generally support the additional award procedure because it:
Promotes efficiency in arbitration
Reduces court interference
Ensures fairness between parties
However, courts may intervene if:
The tribunal exceeds its jurisdiction
The request is filed outside the legal time limit
The additional award violates public policy.
9. Important Case Laws
1. LaPine Technology Corp. v. Kyocera Corp.
The court recognized that arbitral tribunals may issue supplementary or additional awards when claims raised during arbitration are inadvertently omitted from the final decision.
2. Hyle v. Doctor’s Associates Inc.
The court emphasized that arbitrators have authority to clarify and complete awards through additional determinations when necessary to address unresolved claims.
3. Sterling China Co. v. Glass, Molders, Pottery Workers International Union
The court upheld the issuance of an additional arbitral award to resolve issues that were not addressed in the initial decision.
4. Trade & Transport Inc. v. Natural Petroleum Charterers Inc.
The tribunal issued supplementary decisions addressing issues overlooked in the initial award, and the court accepted the validity of such additional determinations.
5. ICC Arbitration Case No. 4761
In this case, the arbitral tribunal issued an additional award after discovering that one of the claims submitted by a party had not been addressed in the final award.
6. ICC Arbitration Case No. 8128
The tribunal issued an additional award to resolve omitted claims regarding damages that had been presented but were not decided in the original award.
7. Karaha Bodas Company v. Perusahaan Pertambangan Minyak
The court acknowledged the legitimacy of supplementary awards in arbitration where certain claims were inadvertently omitted.
10. Advantages of the Additional Award Procedure
(a) Completeness of Decision
It ensures that every claim submitted in arbitration is properly decided.
(b) Avoidance of Fresh Proceedings
Parties do not need to start new arbitration proceedings.
(c) Efficiency
The procedure saves time and costs.
(d) Strengthening Arbitration
It enhances confidence in arbitration as an effective dispute resolution method.
11. Limitations of Additional Awards
Despite their benefits, additional awards may face certain limitations:
Strict time limits for requesting them
Tribunal cannot reconsider issues already decided
Only omitted claims can be addressed
Thus, the procedure is limited to completing the award rather than revising it.
12. Conclusion
The additional award request procedure is an important safeguard in arbitration. It allows parties to request the arbitral tribunal to decide claims that were submitted but unintentionally omitted from the final award. Arbitration laws such as the **UNCITRAL Model Law on International Commercial Arbitration and the **Arbitration Act 1999 (Nepal) provide clear mechanisms for requesting such awards within a specified time period. By ensuring completeness, fairness, and efficiency, additional awards play a crucial role in maintaining the effectiveness of arbitration as a dispute resolution mechanism.
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