Arbitration
Arbitration is a form of alternative dispute resolution (ADR) where parties in a dispute agree to resolve their issues outside of traditional court systems. Instead of a judge, a neutral third party, called an arbitrator, is selected to hear the evidence and make a binding decision. The process is typically less formal than court proceedings, often faster, and may be more flexible in terms of rules and procedure.
Advantages of Arbitration
Faster resolution
Cost-effective
Flexibility
Confidentiality
Binding decision
Specialised expertise of arbitator(s)
Enforceability of awards
Neutrality in international disputes
ICC Rules of Arbitration 2021
The ICC Rules of Arbitration 2021 introduce key updates aimed at improving procedural efficiency, transparency, and flexibility in international arbitration. Notable changes include the increased use of technology, expedited procedures for smaller claims, and enhanced provisions for addressing conflicts of interest and ensuring fairness throughout the arbitration process.
ICC Dispute Resolution Bulletin
This edition of the Bulletin examines the role of arbitral institutions in upholding process integrity, promoting the rule of law, and ensuring access to justice. It also explores cost-efficient awards for small- and medium-sized enterprises and addresses the legitimacy and fairness of arbitration procedures.
Cost of Arbitration
The cost of ICC Arbitration depends on several factors, including the amount in dispute, the number of arbitrators, and the complexity of the case. The main components of arbitration costs are:
ICC Administrative Fees
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ICC charges a fixed administrative fee based on the amount in dispute.
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The higher the dispute value, the higher the fee.​​​​
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Arbitrators’ Fees
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ICC arbitrators are compensated based on the time spent and the complexity of the case.
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The fee structure follows ICC’s scale of arbitrators’ fees, which depends on the dispute’s value.
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If there are three arbitrators instead of one, costs will be higher.
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Legal Fees & Other Costs
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Parties must pay for their legal representation, which varies based on law firms and jurisdiction.
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Expert witnesses, translation services, and hearing venues add to the total cost.
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FAQ
What is ICC arbitration?
ICC arbitration refers to the process of resolving disputes through arbitration under the rules of the International Chamber of Commerce (ICC). The ICC provides a structured framework for parties to resolve their disputes through neutral arbitration, ensuring fairness and adherence to international standards.
How are arbitrators appointed in arbitration?
Arbitrators in ICC arbitration are typically appointed by the parties or, if the parties cannot agree, by the ICC Court. The ICC Court oversees the process and ensures that the arbitrators are qualified and impartial.
How long does the arbitration take?
The duration of ICC arbitration varies depending on the complexity of the dispute, but the ICC aims to ensure that cases are resolved as quickly as possible. The new expedited procedures allow for faster resolution of smaller disputes, typically within six months after the tribunal is constituted.
Are ICC arbitration awards enforceable internationally?
Yes, ICC arbitration awards are generally enforceable worldwide, thanks to the 1958 New York Convention, which facilitates the recognition and enforcement of arbitration awards in 172 countries. This makes ICC arbitration a preferred method for international dispute resolution.​
Who pays for the Arbitration?
Generally, the losing party pays the arbitration costs.The tribunal can also decide to split costs based on case circumstances.