Data
- Date:
- 00-00-1996
- Country:
- Arbitral Award
- Number:
- 8769
- Court:
- ICC Court of Arbitration - Zurich
- Parties:
- Unknown
Keywords
PARTIES' CHOICE OF DOMESTIC LAW (FRENCH LAW) TOGETHER WITH THE CISG AS THE LAW GOVERNING THE CONTRACT
INTEREST RATE NOT DETERMINED BY CISG (ART. 78 CISG) REFERENCE BY ARBITRAL TRIBUNAL TO ART. 7.4.9 (2) OF THE UNIDROIT PRINCIPLES IN SUPPORT OF APPLICATION OF COMMERCIALLY REASONABLE RATE
Abstract
A French and an Austrian company entered into a manufacturing contract. The contract provided for the application of French law and the CISG.
A dispute arose, and in awarding interest the sole arbitrator pointed out that Art. 78 CISG does not specify the applicable rate. The sole arbitrator therefore decided to apply an interest rate that he deemed commercially reasonable, i.e. the interest rate of the currency in which damages had to be paid (Austrian schillings), and in support of his finding he referred with no further explanation to Art. 7.4.9 (2) of the Unidroit Principles.
Fulltext
[…]
Claimant claims interest at the French statutory rate from [...]
Respondent claims interest at 10.5 % on [...] since [...]
Claimant is entitled to interest on the sums awarded pursuant to Art. 78 of the Vienna Convention. Art. 78 Vienna Convention does not specify a particular interest rate. The sole Arbitrator considers it appropriate to apply a commercially reasonable interest rate (see Art. 7.4.9. subs. 2 Unidroit Princìples). The interest rate claimed is commercially reasonabie for the award currency; Austrian schillings.
"On [...], the date from which Respondent claims interest, the Agreement had been terminated. The sums claimed were due in the sense of Art. 78 Vienna Convention.
Accordingly, interest is awarded to Respondent as claimed.
[…]}}
Source
Original in English (excerpt):
- ICC International Court of Arbitration Bulletin, Vol. 10, No. 2, Fall 1999, 75}}