Costs

There are three main heads of costs involved in an arbitration:

(i) fees charged by the institution administering the arbitration (if any),

(ii) fees charged by the arbitrator(s), and

(iii) the parties’ legal fees.

In predicting the first two of these, there is a major difference in approach between:

• the ICC and many of the arbitral institutions in civil law countries. For both its own fees and those of the arbitrators appointed by it, the ICC charges by reference to a percentage of the sum in dispute, adjusted to take account of the complexity of the matter; and
• the LCIA, other arbitral institutions in common law countries and arbitrators in stand-alone arbitrations. Arbitrators charge on a time basis. The LCIA also charges for its own fees on a time basis.

As a result, the ICC can be good value in a lengthy and complex arbitration; but it can be extremely expensive in a straightforward claim to enforce a high-value debt. For further details, click on the items concerning fees on the menu on the right.