The party requesting an interim measure or applying for a preliminary order shall be liable for any costs and damages caused by the measure or the order to any party if the arbitral tribunal later determines that, in the circumstances, the measure or order should not have been granted. The arbitral tribunal may award such costs and damages at any point during the proceedings.
§ 1297.178.Costs and Damages
Title 9.3. Arbitration and Conciliation of International Commercial Disputes · Chapter 4. Jurisdiction of Arbitral Tribunals · Article 2. Interim Measures Ordered by Arbitral Tribunals · Enacted 1903 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1297.178 holds a party liable for costs and damages caused to another party by an interim measure or preliminary order the party requested if the tribunal later determines the measure or order should not have been granted, and lets the tribunal award those costs at any point in the proceedings.
Full Text of § 1297.178
Plain-English Summary
Requesting interim relief is not risk-free. If a party asks for an interim measure or a preliminary order and the tribunal later concludes, given how things played out, that the measure or order should never have been granted, the requesting party can be held responsible for the costs and damages that measure or order caused another party.
The tribunal is not confined to a single moment to make that call. It may award costs and damages tied to a wrongly granted measure or order at any point during the arbitration, whether that means addressing it as soon as the mistake becomes apparent or folding it into the final award along with everything else.
Frequently Asked Questions
What happens if an interim measure turns out to have been wrongly granted?
The party who requested it can be held liable for costs and damages the measure or order caused to another party.
When can the tribunal award those costs and damages?
At any point during the proceedings, not just at the end.
Amendment History
Added by Stats 2024 ch 90 (AB 1903),s 16, eff. 1/1/2025.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 29, 2026.
· Official source
Also known as: liability for wrongly granted interim measurecosts damages preliminary order arbitration california