Chapter 13

Question 1

What are the costs of arbitration? What is the difference between costs of arbitration in ad hoc arbitrations and institutional arbitrations?

Question 2

What is meant by ‘costs follow the event’? Are there exceptions to this rule?

Question 3

How would an arbitral tribunal determine recoverable costs? Why should there be a cap on such costs?

Question 4

When would an order for security of costs be desirable? What dangers must such an order seek to avoid?

Question 5

Examination-style questions
* Define ‘costs of the arbitration’, the ‘award of costs’, ‘recoverable costs of the arbitration’ and ‘the determination of costs’.

• Explain why ‘costs follow the event’ might not be a desirable rule in international arbitration. Is there a better alternative?
• Compare the application of capping recoverable costs and ordering for security of costs in an arbitration. What are the similarities and differences?