Amicable Dispute Resolution (ADR)
ADR costs and payment
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Filing Fee
Each Request for Mediation (“Request”) must be accompanied by a filing fee of USD3,000, as of January 2018.
This amount is non-refundable and shall be credited towards the deposit of the party having filed the Request. No Request shall be processed unless accompanied by the filing fee.
Deposit
Following the commencement of the mediation proceedings, the Centre shall request the parties to pay a deposit to cover the administrative expenses of the Centre and the fees and expenses of the Mediator, as set out in the Appendix to the Rules. Such deposit may be readjusted to cover the total time spent by the Mediator. When determining the amount of the deposit, the Centre shall take into account all circumstances of the case, including indications regarding the value of the dispute. In 2021, the average cost of the mediation proceedings was USD$ 26,000.
All deposits shall be borne in equal shares by the parties unless agreed otherwise. The Centre may stay or terminate the proceedings under the Rules if any requested deposit is not paid.
Transfer of credits between ICC Mediation and ICC Arbitration cases
When the mediation is preceded by the submission of a Request for Arbitration between the same parties and concerns the same or parts of the same dispute, the filing fee paid for such arbitration shall be credited to the administrative expenses of the mediation. This is only if the total administrative expenses paid with respect to the arbitration exceed US$7,500.
When arbitration is preceded by the submission of a Request for Mediation between the same parties and concerning the same or parts of the same dispute, one half of the ICC administrative expenses paid for the Mediation proceedings shall be credited to the ICC administrative expenses of the arbitration.
Mediator’s Fees and Expenses
The Mediator’s fees and expenses are fixed by the ICC International Centre for ADR.
The fees of the Mediator shall be calculated on the basis of the time reasonably spent by the Mediator in the proceedings. The hourly rate is fixed by the Centre when appointing or confirming the Mediator and after having consulted the Mediator and the parties. The parties and the Mediator may agree to depart from the hourly rate for a single fixed-rate fee. The Centre will fix the single rate fee, and at its discretion, may increase or decrease the amount of the single fixed-rate fee based upon a reasonable request of a party or the Mediator.
In sum:
- there is no pre-fixed hourly rate;
- the mediator suggests an hourly rate;
- the parties can comment; and
- the Centre will then fix the hourly rate at the outset. Accordingly, parties retain some control over the mediator’s costs. The mediator’s fees will generally be based on an hourly rate unless the parties and the mediator have agreed that the Centre fix the mediator’s fees on the basis of a single fixed-rate fee for the entirety of the proceedings
VAT or other taxes
Parties have a duty to pay any taxes or charges due to the Mediator. However, the recovery of any such taxes or charges is a matter solely between the Mediator and the parties.
As of 1 January 2021 and to the extent that VAT is applicable, ICC administrative expenses will be subject to VAT and may be increased by the corresponding amount at the prevailing rate as set out below. The applicable rate under French tax law is currently 20%.
Payment details
The payment must originate from the party to the case.
ICC is bound to operate in conformity with applicable sanctions regulations, such as those imposed by the United Nations, European Union and Office of Foreign Assets Control. If parties have reasonable doubt that a sanction’s regime is applicable to their request, they must inform ICC in advance. This means prior to submitting any such request and prior to paying the respective filing fee. In such case, please contact compliance@iccwbo.org.
The ICC International Court of Arbitration and the ICC International Centre for ADR compliance policies and procedures are put forward here.