R v C

Following the dismissal of an application challenging the independence and impartiality of a sole arbitrator, the AIFC Court considered the issue of costs. The unsuccessful party argued that each side should bear its own costs because the challenge was brought to resolve legitimate concerns regarding the arbitrator’s impartiality. The Court rejected that argument, holding that the general rule requiring the unsuccessful party to pay the successful party’s costs should apply. After assessing the reasonableness and proportionality of the legal fees claimed, the Court ordered the applicant to pay KZT 4,250,000 in costs, representing 85% of the amount sought by the successful party. Download PDF