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The issues with interest calculations in arbitration awards

13 June 2024 / Author(s): Hanif Virji
Issue: January 2021 / Categories: Feature

There is often much angst about choosing the right method of calculating interest on an arbitral award and, indeed, which interest rate to use. There are no criteria that can be applied a priori to assist in the selection in a particular case. Rather, the key is to determine what monetary return the injured party might have earned had they had use of the arbitral award over the relevant period of time. This amount can then be readily translated into a method and interest rate to suit the arbitrator.

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