The main opportunities for keeping arbitration costs down lie within three core areas, explains James Barrett
Arbitration has long been considered a more cost-effective alternative to resolving a dispute at trial. Yet with arbitration costs on the rise, there is a growing concern as to how it can remain an economical alternative to trial. However, Lord Justice Jackson’s costs budgeting regime offers some valuable lessons.
In arbitration actions governed by the London Court of International Arbitration (LCIA), costs are specifically dealt with under Art 28.1, which states the costs of the arbitration (other than the legal or other costs incurred by the parties) shall be determined by the LCIA in accordance with the Schedule of Costs. The parties are jointly and severally liable to the arbitral tribunal and to the LCIA for costs.
Under Art 28.3 the arbitral tribunal shall have the power to order in its award all, or part, of the legal costs incurred by a party to be paid by another
