Costs and Funding: Arbitration

A note giving practical advice on the steps parties and arbitrators can take to avoid excessive delays and costs in arbitration.

This note considers the growth of third party funding in international arbitration. It summarises some of the benefits and risks of third party funding for claimants in arbitration and provides guidance on how to manage those risks. The note describes the process of obtaining funding and gives practical tips for parties entering into a funding agreement.

An article highlighting the key arbitration-related developments in Germany  in 2012/2013. 

The Country Q&A tool enables subscribers to search the Country Q&A in the PLC Arbitration multi-jurisdictional guide by question and jurisdiction. Simply select the questions and the jurisdictions that you are interested in and click the "submit" button. Please note that the law stated dates for each jurisdiction covered may not be the same. To check the law stated dates for each jurisdiction, please visit the individual article.

A Q&A guide to arbitration law and practice in South Korea. The country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in this jurisdiction, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim. To compare answers across multiple jurisdictions visit the Arbitration procedures and practice Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to arbitration. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

A Q&A guide to arbitration law and practice in Singapore. The country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in this jurisdiction, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim. To compare answers across multiple jurisdictions visit the Arbitration procedures and practice Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to arbitration. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

A Q&A guide to arbitration law and practice in Brazil. The country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in this jurisdiction, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim. To compare answers across multiple jurisdictions visit the Arbitration procedures and practice Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to arbitration. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

A Q&A guide to arbitration law and practice in Malta. The country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in this jurisdiction, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim. To compare answers across multiple jurisdictions visit the Arbitration procedures and practice Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to arbitration. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

A Q&A guide to arbitration law and practice in Turkey. The country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in this jurisdiction, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim. To compare answers across multiple jurisdictions visit the Arbitration procedures and practice Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to arbitration. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

It may be very difficult, if not impossible, to obtain an anti-suit injunction preventing a party from commencing or continuing proceedings before another court (or arbitral tribunal), in order to enforce an arbitration agreement. An alternative to the anti-suit injunction is the anti-enforcement injunction: an order enjoining a party to an arbitration agreement from enforcing an award or a court judgment. This article considers both anti-suit injunctions and anti-enforcement injunctions, including: anti-suit injunctions issued by state courts; anti-suit injunctions issued by arbitral tribunals; and a review of the anti-enforcement injunctions as a variant of anti-suit injunction. This article is part of the PLC Arbitration multi-jurisdictional guide. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

A Q&A guide to arbitration law and practice in Austria. The country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in this jurisdiction, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim. To compare answers across multiple jurisdictions visit the Arbitration procedures and practice Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to arbitration. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

A Q&A guide to arbitration law and practice in China. The country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in this jurisdiction, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim. To compare answers across multiple jurisdictions visit the Arbitration procedures and practice Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to arbitration. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

A Q&A guide to arbitration law and practice in France. The country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in this jurisdiction, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim. To compare answers across multiple jurisdictions visit the Arbitration procedures and practice Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to arbitration. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

A Q&A guide to arbitration law and practice in Hungary. The country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in this jurisdiction, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim. To compare answers across multiple jurisdictions visit the Arbitration procedures and practice Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to arbitration. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

A Q&A guide to arbitration law and practice in Italy. The Q&A guide provides a structured overview of the key practical issues concerning arbitration in this jurisdiction, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim. To compare answers across multiple jurisdictions visit the Arbitration procedures and practice Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to arbitration. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

A Q&A guide to arbitration law and practice in Lithuania. The country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in this jurisdiction, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim. To compare answers across multiple jurisdictions visit the Arbitration procedures and practice Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to arbitration. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

A Q&A guide to arbitration law and practice in South Africa. The country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in this jurisdiction, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim. To compare answers across multiple jurisdictions visit the Arbitration procedures and practice Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to arbitration. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

A Q&A guide to arbitration law and practice in the UK (England and Wales). The country-specific Q&A guide provides a structured overview of the key practical issues concerning arbitration in this jurisdiction, including any mandatory provisions and default rules applicable under local law, confidentiality, local courts' willingness to assist arbitration, enforcement of awards and the available remedies, both final and interim. To compare answers across multiple jurisdictions visit the Arbitration procedures and practice Country Q&A tool. This Q&A is part of the PLC multi-jurisdictional guide to arbitration. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

This article examines the recent decisions of the US Supreme Court and the Supreme Court of Canada on the enforceability of mandatory arbitration clauses in consumer contracts. In reaching their decision both courts purported to protect the same policy objectives, but arrived at somewhat different conclusions. The article discusses the issues raised by the cases, the reasoning behind each court's decision and the possible effect the rulings may have on future arbitrations. This article is part of the PLC Arbitration multi-jurisdictional guide. For a full list of jurisdictional Q&As visit www.practicallaw.com/arbitration-mjg.

Stephan Wilske (Partner) and Claudia Krapfl (Associated Partner), Gleiss Lutz In a decision dated 30 November 2011, but only recently published, the Federal Court of Justice held that a German court requested to enforce a foreign arbitral award may specify costs and interest in order to make an arbitral award enforceable in Germany, just as a corresponding German judgment would be.

On 27 September 2011, the Swiss Arbitration Association launched the Swiss Initiative for Transparency in Arbitration Costs, at the Chartered Institute of Arbitrators' international conference, Costs of International Arbitration, in London.

The Chartered Institute of Arbitrators has launched a major survey into the costs incurred in international arbitration proceedings.

Daniel J. Leffell (Partner), Marc Falcone (Partner) and Jeffrey D. Kleinman (Associate), Paul, Weiss, Rifkind, Wharton & Garrison LLP In ReliaStar Life Insurance Company of New York v. EMC National Life Company 564 F.3d 81 (2d. Cir. 2009), the United States Court of Appeals for the Second Circuit reversed the district court's ruling that a contract provision stating that each party will bear the fees of its appointed arbitrator and its own attorneys in an arbitration, does not preclude an arbitrator from awarding such fees as a sanction against a party found to have acted in bad faith during the arbitration.

ICSID fees are to increase with effect from 1 January 2008. The Centre's administrative charge will increase from US$10,000 to US$20,000. This charge becomes payable once the arbitral tribunal, conciliation commission or ad hoc committee has been constituted, and it is payable annually after that. The increase will apply to all cases begun after 1 January 2008, but for cases which have already been instituted the current charge of US$10,000 will continue to apply until 1 January 2009.The Centre is also reintroducing a fee for the Centre's legal staff to attend meetings away from ICSID's seat in Washington DC of US$1,500 per day. These fees and others are set out in a new Schedule of Fees.Similarly, the ICC is increasing some of its fees. The ICC has a sliding scale of fees depending on the amount in dispute. The minimum and maximum fees remain the same, but the rates in-between have changed. For disputes worth from US$50,000 to US$50 million, the rates have increased. They will now range from 4.3% of the dispute's value at the lower end of the scale to 0.01% at the higher end. The new fees will apply to all cases where a request for arbitration is received by the secretariat on or after 1 January 2008.Sources: ICSID website and ICC website

In 2005 the ICC Commission on Arbitration created a Task Force to identify ways of effectively reducing time and costs in arbitration, particularly in complex cases. Even where parties agree to arbitrate under institutional rules, those rules will rarely set out detailed procedures for the conduct of the arbitration, for example in relation to document production, exchange of witness statements, expert reports and briefs. Whilst this flexibility allows the procedure to be tailor made to suit each dispute, it is important for the parties to identify and agree on the most suitable procedures as early as possible in the arbitration. The Task Force consulted with all National Committees and produced a document entitled "Techniques for Controlling Time and Cost in Arbitration". The document is understood to set out a range of techniques, both for arbitrators and for parties, which can be used to organise the proceedings and to control their duration and cost. Parties will be able to review the proposed techniques (which may be suitable for ICC or non-ICC arbitration) and adopt those which are most suited to their dispute. The ICC document will be launched and reviewed in depth at a one-day conference on Tuesday 27 March 2007, which will be chaired by Chris Newmark (co-chair of the Task Force) and by Peter Wolrich (chair of the ICC Commission on Arbitration). The conference is designed to provide an opportunity for discussion and comments from counsel, the ICC, arbitrato

In a decision dated 23 July 2012, but only recently published, the Higher Regional Court of Munich held that Article 31 of the ICC Arbitration Rules 1998 provides a self-contained system of rules for decisions on costs. This means that it is not necessary to refer to the provisions on costs in the domestic legal system, that is, the German Code of Civil Procedure and the German Lawyers’ Compensation Act.

In Occidental Chartering Inc v Progress Bulk Carriers Ltd [2012] EWHC 3515 (Comm), the Commercial Court considered damages claims relating to the costs of arbitrations commenced under a string of contracts.