Part IX Costs, Funding, and Ideas for Optimization, 26 The Costs and Funding of International Arbitration
Joe Tirado, Daniel R Meagher, Arpan Gupta
From: Defining Issues in International Arbitration: Celebrating 100 Years of the Chartered Institute of Arbitrators
Edited By: Julio César Betancourt
- Jurisdiction — Arbitral tribunals — Arbitrators — International courts and tribunals, decisions — International courts and tribunals, procedure
The costs and funding of international arbitration are an integral part of the dispute process and not mere consequence. As the costs for the end-users of international arbitration continue to rise, there is a greater emphasis on recovering them, a dismay about how arbitration is ‘out of control’, together with a variety of efforts at reforms designed to reduce costs and foster efficiency. This chapter first considers the different cost elements involved in international arbitration proceedings. These include institutional charges, arbitral tribunal fees and expenses, external counsel’s fees, costs of witnesses, and miscellaneous costs. It then explores the funding mechanisms which are increasingly available to parties in international arbitration, including conditional fee arrangements (CFAs), damages-based agreements (DBAs), and insurance products.