Originally from Navigating Maritime Arbitration: The Experts Speak

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US law generally provides that each party bears its own costs, including attorneys’ fees. This is sometimes referred to as “the American Rule” in contrast to “the English Rule” pursuant to which the prevailing party on the merits is awarded its costs, including attorneys’ fees. However, it is and was always the case that a tribunal in the US (whether a court or arbitration panel) could award attorneys’ fees to the prevailing party if a contractual provision or statute or court rule allowed it to do so. As discussed below, based on contractual provisions and case law holdings, maritime arbitrators in the US are now authorized to and routinely do award attorneys’ fees to the prevailing party. Some charter party forms, such as the Asbatankvoy and those derived from it, always authorized an award of fees. Clause 24 of the Asbatankvoy provides: “Awards made in pursuance to this clause may include costs, including a reasonable allowance for attorney’s fees . . . .” Clause 23 further provides: “Damages for breach of this Charter shall include all provable damages, and all costs of suit and attorney’s fees incurred in any action hereunder.”