BRITISH VIRGIN ISLANDS Law and Practice Contributed by: Alex Hall Taylor KC, Richard Brown, Tim Wright and Simon Hall, Carey Olsen
11.3 Interest Awarded on Costs Once assessed, an order for costs will be an order to pay a specific sum and will become a judgment debt. Interest is payable on judgment debts at a rate of 5% per annum from the date of judgment. The BVI courts have ruled that interest may run on costs from the date that the order to pay costs was made, even if the costs are assessed at a later date. 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country The BVI has sought to increase the popularity of arbitration as a form of ADR through the BVI Arbitration Act 2013 and the launch of the BVI International Arbitration Centre (BVI IAC) (see 13. Arbitration ). However, the BVI remains a largely court-focused “front line” litigation jurisdiction in which ADR plays less of a role than elsewhere. A BVI court cannot compel ADR; however, under Rule 27.7 of the EC CPR, it may adjourn a case management conference to enable settlement discussions or a form of ADR procedure to con- tinue. Mediation is often considered and has led to settlement of major cases, but the court has no specific power to require parties to mediate. The BVI has a number of qualified mediators who can be instructed locally. However, due to the international nature of BVI disputes, media- tions often take place elsewhere.
12.2 ADR Within the Legal System Until recently, there has been no formal require- ment for parties to take part in ADR and no spe- cific sanction for refusing to do so. However, general conduct and reasonableness of parties are relevant when assessing costs. If a party unreasonably refuses to engage in ADR, this may be reflected in costs. However, as explained in 8. Settlement , the BVI CPR now contains the concept of “judicial settlement conferences” (Part 38A), which is new and untested. 12.3 ADR Institutions The main institution is the International Arbitra- tion Centre (IAC), which provides excellent ser- vices and facilities for ADR, in particular arbitra- tion. The BVI IAC is still in its early days but is promoting ADR in the BVI, the rest of the Carib- bean and beyond. 13. Arbitration 13.1 Laws Regarding the Conduct of Arbitration Arbitrations and the recognition or enforcement of arbitral awards in the BVI are largely gov- erned by the Arbitration Act 2013, which came into force on 1 October 2014. It introduced the UNCITRAL Model Law on International Com- mercial Arbitration 1985 to the BVI with some minor exceptions. Issues of recognition and enforcement of foreign arbitral awards are also governed by the Arbitra- tion Act and the EC CPR. 13.2 Subject Matters Not Referred to Arbitration Matters of corporate or individual insolvency, criminal matters, and family matters may not be referred to arbitration. Furthermore, any matters
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