On November 18, 2015, the United States District Court for the Southern District of New York held in Navig8 Chemicals Asia PTE, Ltd. et al. v. Crest Energy Partners, LP, that where an award debtor failed without justification to abide by an Arbitration Tribunal’s Award issued in an international arbitration seated in New York, or respond to a petition to confirm the Award under the New York Convention, the Court may invoke its inherent equitable powers and award reasonable attorney’s fees and costs associated with the application. The court reasoned that the general “American Rule”, under which each party is required to bear its own legal fees and costs associated with a case, are trumped where a party “without justification” refuses to abide by an arbitrator’s decision.
Navig8 Chemicals Asia PTE, Ltd. and Navig8 Chemicals Pool, Inc. v. Crest Energy Partners, LP, No. 15 CIV. 7639 (PAE), 2015 WL 7302267 (S.D.N.Y. Nov. 18, 2015)