A survey carried out by the Chartered Institute of Arbitrators revealed that the UK is the cheapest place in Europe for international arbitration. Surprisingly, 74% of party costs in international arbitrations are legal fees and those fees are 26% greater in the rest of Europe. Claimants’ costs averaged just over £1.5 million in the UK. The rest of Europe had far higher costs averaging nearly £1.7 million.
International arbitration has traditionally been seen as a cheaper alternative to court proceedings but businesses are increasingly concerned that the spiralling costs are making arbitration as expensive as litigating in court.
Costs aside, international arbitration is often chosen by businesses because the arbitrators are considered to be experts in their field, the process can be faster than court proceedings and, in many cases, it is easier to enforce arbitration awards.
For more information about international arbitration and other forms of dispute resolution, please contact Quentin Bargate or Andrew Denny of Bargate Murray.