The English principle from A v B [2007] EWHC 54 — that costs should be awarded on an indemnity basis where proceedings are commenced in breach of an arbitration agreement — does not represent the law in Victoria. Where a stay is granted under s 7 of the IAA, the court may impose a condition that the arbitration be treated as having commenced on the date the court proceedings were commenced, to protect the plaintiff from limitation period prejudice caused by the defendant's delay in seeking the stay. The court does not have power to refer costs arising from the stayed proceeding to be determined as part of the arbitration.
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2 of the 9 citing cases carry a classified treatment. How each court treated it is available to signed-in members.