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Journal of International Arbitration· 2026Q2

Understanding the Rationale Behind Cost Awards in ICC Arbitration

William Kirtley, Alexandra Koliakou

Short summary

ICC arbitration tribunals are increasingly applying the 'costs follow the event' principle, adjusted by relative success, in awarding costs, moving towards greater predictability.

AI-generated from the title and abstract; the full text is not read.

Key points

  • ICC tribunals commonly apply the 'costs follow the event' principle in cost awards.
  • Relative success is a key factor in adjusting cost awards.
  • Party conduct, proportionality, and reasonableness influence cost decisions.
  • Thirty recent ICC awards were analyzed to identify patterns in cost allocation.

AI-generated from the title and abstract; the full text is not read.

Abstract

This article explores the rationale and evolving practice of cost allocation in ICC arbitration. While the ICC Rules grant arbitral tribunals broad discretion in awarding costs, a review of recent awards reveals an emerging pattern: tribunals commonly apply the ‘costs follow the event’ principle, often adjusted through the relative success rule. The analysis also highlights the influence of party conduct, proportionality, and reasonableness in cost decisions. Drawing on thirty recent ICC awards, the article examines the practical limits of arbitral discretion and offers proposals, such as early procedural consideration of cost issues and settlement offers, designed to promote greater predictability in cost outcomes.

The authors' abstract, as published at the source. Journal of International Arbitration, 2026 · DOI ↗

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Field: Strategy and Management

Strategy and ManagementBusiness, Management and Accounting