What an arbitration award means

What the award has to contain

UNCITRAL adopted its Model Law on International Commercial Arbitration on 21 June 1985 and amended it on 7 July 2006 ¹. Article 31 says the award shall be made in writing and signed by the arbitrator or arbitrators ¹. Where there is more than one arbitrator, the signatures of a majority suffice if the reason for any omitted signature is stated ¹.

The award must state the reasons on which it is based. There are two exceptions. The parties may agree that no reasons are to be given, or the award may be an award on agreed terms that records a settlement ¹. The award must state its date and the place of arbitration, and it is deemed to have been made at that place ¹. Each party then receives a signed copy ¹.

For investor-state cases under the ICSID Convention, Article 48 says the award shall deal with every question submitted to the tribunal and state the reasons on which it is based ². Any arbitrator may attach an individual opinion, whether or not that arbitrator agrees with the majority, or a statement of dissent ².

Kinds of award and how a case closes

Under the Model Law, the proceedings end with the final award or with a termination order ¹. The tribunal issues a termination order when the claimant withdraws its claim, when the parties agree to end the case, or when continuing has become unnecessary or impossible ¹. A termination order is not a decision on who was right.

ICSID reports outcomes for cases decided by a tribunal in four categories ⁶. The table gives the shares in ICSID's release for fiscal year 2026, the year to 30 June 2026 ⁸.

Corrections and later decisions on the same award

An award can be corrected after it is issued. Under Article 33 of the Model Law, a party may ask the tribunal within thirty days of receiving the award to correct errors in computation, clerical or typographical errors ¹. If the parties agreed, a party may ask for an interpretation of a specific point ¹. A party may ask for an additional award on claims presented but left out of the award, and the tribunal has sixty days to make it ¹.

At ICSID, a party may ask within 45 days for a decision on a question the tribunal omitted, and the tribunal shall rectify clerical, arithmetical or similar errors ². That decision becomes part of the award ². Either party may request interpretation if a dispute arises over the meaning or scope of the award ².

Binding, but not a court judgment

An ICSID award is binding on the parties and is not subject to any appeal or other remedy except those in the Convention ². Each Contracting State shall recognise it as binding and enforce its pecuniary obligations as if it were a final judgment of a court in that State ².

Other awards rely on national law and treaties. Under Article III of the New York Convention of 10 June 1958, each Contracting State shall recognise arbitral awards as binding and enforce them under its own rules of procedure ³. The party seeking enforcement supplies the authenticated award and the arbitration agreement ³.

How courts can review an award

The routes depend on the law of the seat. The Model Law says recourse to a court may be made only by an application for setting aside ¹. In England and Wales, a party may challenge an award for serious irregularity that the court considers has caused or will cause substantial injustice ⁴. An appeal on a question of law is possible under section 69 of the Arbitration Act 1996 only with the agreement of all other parties or the leave of the court, and the parties can agree to exclude it ⁵.

In the United States, section 10 of the Federal Arbitration Act lets a court vacate an award procured by corruption, fraud or undue means, or where there was evident partiality or corruption in the arbitrators ⁷. Other grounds are arbitrator misconduct and arbitrators exceeding their powers ⁷.