In general, in international arbitration there is little guidance on how the arbitral tribunal shall decide on the allocation of the costs between the parties. Most sets of arbitration rules leave the arbitral tribunal a lot of discretion as to the cost allocation. Hence, the principles applied and considerations made by arbitral tribunals may often vary significantly from one case to the other.
It has been suggested that cost allocation rules are unclear and that the parties have an interest for clear cost allocation rules or guidelines from the arbitral institutions. A first panel shall explore whether there is a need for clear rules or guidelines on cost allocation. What form should such guidance take and what standard principles for cost allocation should be incorporated? For instance, is the “costs follow the event rule” an unchallenged starting principle? Further, should the conduct of parties or even of the parties’ counsel be taken into consideration when allocating the costs of arbitration?
In the context of cost allocation a further issue has attracted attention – the interplay between third-party funding and cost allocation. A second panel shall focus on this interface issue and explore how tribunals should value the fact that a party has resorted to third party funding. Could third-party costs be reimbursed on the basis of the pertinent arbitration rules? What considerations should the arbitral tribunal apply when considering the allocation of costs in proceedings where one party is funded?
Who should attend?
This conference is aimed at young arbitration practitioners of approximately 40 years and under: counsel, arbitrators, corporate counsel or academics. The ICC YAF Conference will be an ideal forum for young practitioners to exchange thoughts on international arbitration, and to enrich their network in the region.