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The High Court of Uganda has clarified the Jurisdiction of the Arbitral Tribunal on Determination and Apportionment of Costs in Ugandan.
<p>The High Court of Uganda in Misc. App. No. 05 of 2025 Roko Construction Limited versus Pearl Marina Estates Limited confirmed that under Ugandan Arbitration Law, the Arbitrator Tribunal has exclusive jurisdiction to determine and apportion the costs and expenses of an arbitration, being the legal and other expenses of the parties, the fees and expenses of the arbitral tribunal and any other expenses related to the arbitration. This includes deciding who of the parties is liable for costs, the reasons why and to what extent, i.e. undertaking a mathematical calculation of the costs obligation. <br/><br/>The effect is that the apportionment is not completed until the Arbitrator has quantified the costs. To that end, the Arbitrator must request the parties to submit on the determination and apportionment of costs before the Final Award is written for Completeness.</p><p>However, where the determination has been made and the quantum has not been done in apportionment, the Act provides that the successful party is entitled to a reimbursement of 50% of all the Arbitrator's fees, the Administrative costs or the Institutional charges. To that end, these are recoverable from the other party from a Taxation of a Bill of Costs by the Registrar of the High Court of Uganda. The reasoning of the Court is that one cannot have a right without a remedy. <br/><br/>For any clarifications and further questions, our Commercial Arbitration Practice Team at Signum Advocates is ready to advise on any Arbitration matters. ReachOutToUs.</p>
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