HISTORY OF THE PROCEEDING
- The Claimant initiated arbitral proceedings before the Permanent Arbitration Court attached to the Hungarian Chamber of Commerce and Industry (hereinafter referred to as „Arbitration Court”) for vacating leased office property and payment of all procedural costs and attorneys' fees increased with VAT. The substantive law to be applicable was the Hungarian law and the proceedings were conducted in the English language, with its seat in Budapest.
- Accordingly Respondent filed defence, including the objection against the competence of the Court.
- The submissions were accompanied by further submissions, witness statements, case management conference and hearings in Budapest.
- In light of the parties’ joint request declaring about conclusion of a settlement agreement, the Arbitration Court terminated the arbitral proceedings without making an award.
DECLARATION OF THE PARTIES
- The Claimant and Respondent entered into an out of Court Agreement, filed Joint Request requesting termination of the proceedings without annuling an award and indicating that “… all costs incurring with the present arbitration procedure shall be borne by the Claimant” and “… in line with Art. 11. (3) of the Rules, costs are borne by the Claimant”.
- In the Supplemental Joint Request, the Parties have clarified that “…the registration fee, the arbitration fee and the arbitration expenses already advanced shall be borne by the Claimant, but in addition to these, both Parties shall bear their own legal costs. Therefore, there are no costs to be reimbursed to Respondent by the Claimant.”
REASONS OF THE DECISION
- In light of the parties’ joint request declaring about conclusion of a settlement agreement, the Arbitration Court terminated the arbitral proceedings without making an award.
- In accordance with the Art. 11. (4) of the Rules, specifying that “In case of settlement or the termination of proceedings on the basis of the agreement of the parties, the costs of the arbitration shall be borne in accordance with the agreement of the parties…”, the registration fee and the arbitration fee advanced by the Claimant was borne by the Claimant and the arbitration expenses advanced by the Respondent was borne by the Respondent, whereas the Parties borne their own legal costs.
- The Secretariat reimbursed to the Claimant and the Respondent respectively the amounts remaining from the advanced.
(1b/18013 )
