The ICC Commission on Arbitration and ADR’s Task Force on Decisions on Costs has released a new Report. This is the Commission’s latest initiative to ensure that ICC arbitration continues to be a viable and attractive form of dispute resolution for its users.
The objective of this report is to inform users how arbitral tribunals may allocate costs with a view to controlling time and costs effectively and to assist in creating fair, well-managed proceedings which meet the expectations of users.
The Report identifies ways in which tribunals and parties might use costs allocation powers to promote cost effective and efficient conduct of proceedings, clarifies the variety of considerations that tribunals take into account in assessing reasonableness and apportionment of costs, and discusses other costs issues arising out of third party funding, success fees and treatment of settlement offers. In compiling the Report, the Task Force examined costs allocation decisions made in arbitral awards arising out of the ICC International Court of Arbitration and eight other arbitral institutions, as well as the approaches taken in various national systems and laws. This research is included in Appendices to the Report.