Delay Default Costs
Delay is one of the most common reasons arbitration becomes slower and more expensive. Yet missed deadlines do not always carry an immediate consequence.
Arbitrators may be reluctant to impose costs for delay, or may take a more lenient view of extensions and late filings. The result is that parties may have too little incentive to comply strictly with timelines.
Rule 15 of the CORD Rules is designed to change that.
Where a party fails to comply with a time limit under the Rules or fixed by the Tribunal, it enters Delay Default and becomes liable to pay a prescribed Delay Default Cost for each day of delay, unless the Tribunal or Registrar exempts the party for reasons recorded in writing.
A clear consequence for delay
The amount payable depends on the value of the dispute and accrues for every day that the default continues.
Once the default is cured, the Registrar raises an invoice for the amount accrued. Where a delay continues for more than 30 days, the Registrar may raise invoices at 30-day intervals.
The Delay Default Cost is separate from any other consequence the Tribunal may impose, including orders relating to legal costs, tribunal expenses, or other procedural measures permitted by law.
Keeping the arbitration moving
If Delay Default Costs remain unpaid, the Registrar may ask the Tribunal to suspend the proceedings or may withhold release of the Award until the outstanding amount is paid.
If the other party pays the amount to avoid delay or obtain release of the Award, it may ask the Tribunal to include that amount in the Award.
Why it matters
Timelines are effective only if there is a real incentive to follow them.
Rule 15 makes delay carry a clear and immediate consequence. It strengthens accountability, discourages avoidable delay, and keeps the arbitration moving according to the timetable already set.