KUWAIT Law and Practice Contributed by: Dr Fawaz Alkhateeb, Taher Group Law Firm Co
11. Costs 11.1 Responsibility for Paying the Costs of Litigation In Kuwait, the duty for paying litigation costs, such as court fees, expenses and attorney’s fees, varies according to the outcome of the case and the court’s verdict. The prevailing party may be able to recover some or all of these costs from the losing party. The particular procedures and mechanisms for cost recovery, however, are subject to law constraints and the discretion of the court. The amount of costs to be paid by the losing party to the prevailing party is determined by the court. This may involve an assessment of rea- sonable attorney’s fees and other litigation-relat- ed expenses. In such a case, the losing party may be able to contest the amount of expenses to be paid. 11.2 Factors Considered When Awarding Costs The Kuwaiti Civil Procedure Law governs litiga- tion procedures, including cost allocation. When awarding costs, the court considers various factors like the case’s outcome, party conduct, case complexity, cost reasonableness, propor- tionality, settlement offers, delays, and the public interest’s impact. Depending on the case type (eg, commercial, labour, family or administra- tive), specific laws and regulations may also apply, containing unique cost provisions. 11.3 Interest Awarded on Costs In Kuwait, interest on costs is infrequently award- ed in court proceedings. The statutory interest rate can vary based on the nature of the financial transaction or debt. It generally starts accruing from the date of the court’s cost award and can be simple or compound interest. If the statutory
interest rate changes during the accrual period, the new rate may be applied. The court ruling may include a payment deadline, and there is a difference between pre-judgment and post- judgment interest, with the former covering costs incurred before the judgment and the lat- ter applied to the judgment amount after it is rendered. 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country ADR approaches, including mediation, are acknowledged and supported in Kuwait as effi- cient and amicable dispute resolution mecha- nisms. Kuwait has implemented court-connect- ed mediation services, which allow parties to try mediation before pursuing formal litigation. The following are the most popular ADR methods in Kuwait. • Mediation – one of the most prominent ADR approaches in Kuwait, mediation is frequently utilised in family, commercial and civil cases. • Arbitration – arbitration in commercial con- flicts is common. The Kuwaiti Arbitration Law governs arbitration proceedings, which can be handled by an arbitral tribunal. • Reconciliation committees – to handle certain disagreements, particularly family issues, Kuwait has formed reconciliation committees. • Expert determination – in some situations, parties may choose expert determination, in which an independent expert evaluates and decides on specific technical or specialised areas of a dispute. Experts are commonly used in commercial and labour law matters. • Negotiating – parties frequently participate in negotiations to settle their differences without resorting to formal ADR or litigation.
760 CHAMBERS.COM
Powered by FlippingBook