• Applicable period

• Rate of interest

• Simple/compound interest

Defendant is ordered to make payments to Claimant for breaches of representations and warranties regarding retirement and health insurance liability contained in their agreement. This agreement is subject to French law.

'4.1

The Claimant has requested that the Arbitral Tribunal find the Defendant liable to pay to [company X] interest at the legal rate on the amounts payable to[company X], such interest to be calculated from 7th May 1987 to the date of payment by the Defendant . . .

4.2

On 8th March 1994, the Claimant wrote to the Chairman of the Arbitral Tribunal stating that the amount of the interest claimed based on its principal demand in this regard, amounted to . . . as at 31st December 1993.

4.3

According to French law, which governs the contract and this arbitration, given that the Defendant failed to fulfil an obligation to do something (an obligation to disclose), the Arbitral Tribunal must evaluate the resulting liability as of the date of its ruling and can only award default interest at the legal rate on a damage award for the period subsequent to the award, as the debtor of such obligation cannot be late in paying a debt the amount of which is not known to it until the award is made.

4.4

The demand for interest by the Claimant for the period from 7th May 1987 to the date of the Award must be viewed as a demand for compensatory interest, in the nature of additional damages for the purpose of present valuing to the date of the Award the liability determined as of a previous date.

4.5

Also according to French law, the Arbitral Tribunal is at liberty to determine the rate of such interest, given its characterization as additional damages, taking into account the circumstances of the case and, more particularly, not being bound by the legal rate of interest in effect in France, which is applicable only to default interest.

4.6

The Arbitral Tribunal, having adopted for the purposes of the actuarial rate a rate of 7.5% per annum, determines that it is appropriate to adopt the same rate of 7.5% per annum, without compound on interest (which only applies to default interest and which has not been sought by the Claimant), for purposes of evaluating the additional indemnity to be paid by the Defendant to [company X] to take into account the time which has elapsed between 7th May 1987, the date as of which the amounts payable have been determined, and the date of the Award, being about seven years.

4.7

On this basis, the Arbitral Tribunal determines the amount of such interest at . . . However, the Arbitral Tribunal is of the view that by its conduct, notably as a result of its having waited for close to four years after the sale took place before instituting arbitration proceedings, the Claimant contributed to the amount of prejudice caused to it. The Arbitral Tribunal therefore determines that the parties must share responsibility with respect to this matter and that the Defendant shall be ordered to pay to [company X] one half of the above-mentioned amount . . .

4.8

In addition, the Defendant is ordered to pay to [company X] interest at the legal rate in effect in France, calculated on the total of the amounts payable pursuant to this Award . . . from the date of the notification to the Defendant of the Final Award by the Secretariat of the Court to the date of payment by the Defendant.'