Awards of Interest in International Commercial Arbitration: New York Law and Practice

SUMMARY

The International Commercial Disputes Committee (Richard L. Mattiaccio, Chair) issued a report that addresses whether arbitral tribunals in international cases seated in New York and governed by New York substantive law are obligated to apply New York’s nine percent statutory prejudgment interest rate. Based on the legislative history of CPLR Section 5001 et seq, and on New York case law precedent, the report concludes that international arbitrators have discretion to apply or not to apply the nine percent rate. The report goes on to recommend that, in exercising their discretion, arbitrators consider a number of factors in a priority consistent with New York law and international arbitration law emphasis on party autonomy. The report also provides schedules of relevant New York reported decisions and reported arbitral awards.