Cost Submissions - ICSID Convention Arbitration

In most cases, advance payments for costs of the Tribunal and ICSID fees and expenses are requested in equal parts from the parties (with the exception of annulment proceedings, see Cost of Proceedings) and the Tribunal decides on the allocation of costs in the award. Unless the parties agree otherwise, a Tribunal can allocate the cost of any part of the proceeding at any stage (Arbitration Rule 28), without prejudice to its final decision on costs in the award (Article 61(2) of the Convention).

At the end of the proceeding, the parties are invited to file statements or submissions on costs. A statement of costs lists the costs reasonably incurred by a party, including the costs of its legal representation, while a submission on costs also contains a party’s arguments on how and by whom the costs should be paid (Arbitration Rule 28(2)).

The Tribunal has broad discretion to allocate costs between the parties in the final award. It may allocate costs with regard to the proceeding as a whole or with regard to a particular part of the proceeding. Its decision in the award becomes binding and enforceable.

 
  • Isabelle Michou, Chris Parker & Matthew Weiniger, Costs in International Arbitration, Kluwer Law International (2014)
  • John Y. Gotanda, Consistently Inconsistent: The Need for Predictability in Awarding Costs and Fees in Investment Treaty Arbitrations, ICSID Review—Foreign Investment Law Journal, Vol. 28, No. 2, pp. 420-437 (2013)
  • Susan D. Franck, Rationalizing Costs in Investment Treaty Arbitration, Washington University Law Review, Vol. 88, No. 4, pp. 769-852 (2011)
  • Lucy Reed, Allocation of Costs in International Arbitration, ICSID Review—Foreign Investment Law Journal, Vol. 26, No. 1, pp. 76-87 (2011)
  • Christoph H. Schreuer, Loretta Malintoppi, August Reinisch & Anthony Sinclair, Article 59 – Charges of the Centre, The ICSID Convention: A Commentary (2nd ed.), Cambridge University Press, p. 1214 (2009)
  • Christoph H. Schreuer, Loretta Malintoppi, August Reinisch & Anthony Sinclair, Article 60 – Fees and Expenses, The ICSID Convention: A Commentary (2nd ed.), Cambridge University Press, p. 1218 (2009)
  • Christoph H. Schreuer, Loretta Malintoppi, August Reinisch & Anthony Sinclair, Article 61 – Apportionment of Expenses, The ICSID Convention: A Commentary (2nd ed.), Cambridge University Press, p. 1223 (2009)
  • Noah D. Rubins, The Allocation of Costs and Attorney’s Fees in Investor-State Arbitration, ICSID Review—Foreign Investment Law Journal, Vol. 18, No. 1, pp. 109-129 (2003)
  • Michelle Bradfield and Guglielmo Verdirame, Costs in Investment Treaty Arbitration, Litigating International Investment Disputes: A Practitioner’s Guide (Chiara Giorgetti ed.), Brill / Nijhoff, pp. 411-442 (2014)
  • David Brown, What Steps Should Arbitrators Take to Limit the Cost of Arbitration?, Journal of International Arbitration, Vol. 31, No. 4, pp. 499-505 (2014)
  • Matthew Hodgson, Costs in Investment Treaty Arbitration: The Case for Reform, Reshaping the Investor-State Dispute Settlement System: Journeys for the 21st Century (Jean E. Kalicki and Anna Joubin-Bret eds.), Brill / Nijhoff (2014)
 
 

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