Costs in Arbitration Proceedings

Who we act for

We regularly act in Arbitration Proceedings for the successful and unsuccessful parties and have assisted in both maximising recoverability and minimising costs liability for our clients. We work with Counsel, and independently, to draft extensive costs submissions both on the liability for costs in principle, and the quantum of recoverable costs.

Our skillset as both Costs Lawyers and Legal Project Practitioners gives us an insight and in-depth understanding to the various complexities that can arise in these matters and we can assist not only at conclusion of the case, but also in managing the legal spend and progression of your case from the outset.

Despite being a bedrock for the assessment of costs under the CPR, proportionality plays no part in the assessment of recoverable costs of the arbitration.

Pursuant to s.63 of the Arbitration Act 1996, the tribunal may determine the recoverable costs of the arbitration on such basis as it thinks fit and unless the tribunal or court determines otherwise, the recoverable costs shall be determined on the basis of reasonableness.

The recoverable costs pursuant to s.59 of the Arbitration Act 1996 are split into three categories:

1. The arbitrators’ fees and expenses;
2. The fees and expenses of any arbitral institution concerned, and
3. The legal or other costs of the parties.

The latter is subject to the most disagreement between the parties if an agreement has not been reached between the parties as to the liability for costs (such agreement only being valid if made after the dispute in question has arisen).

We can provide advice on the likely recoverability of costs, merits on liability for costs as well as draft submissions and costs statements to maximise your costs recovery.