How you can lower the cost of International Arbitration? Well, there are many things that you can do, such as settle the dispute as soon as possible. And if you settle the same on fair terms, both of the parties will be able to lower the legal expenses to a great extent.
That’s not the only way there are scores of other ways to make International Arbitration smoother, faster, and a lot less expensive. Here are some points to ponder over that may help reduce the overhead costs to a great extent.
Go for a Sole Arbitrator
One way of cutting down on the costs is to settle for a sole arbitrator rather than selecting three arbitrators to resolve the issues. This will bring down the expenditures by approximately 2/3.
While arbitrators may only have to pay a small portion of the cost of international arbitration, you still do not require three arbitrators for international arbitrations as they are very complex to resolve.
Opt for Experienced Yet Cost-Effective Lawyers
Most surveys reveal that 74% of party costs in any given arbitration come down to one thing, pay exorbitant legal fees. Just by reducing this expenditure, you’ll be able to bring down the total cost of international arbitration.
Clients can make an effort to compare the value of the legal services offered by numerous law firms before finally zeroing in on the arbitration legal counsel.
Lower the Head of Costs with the Help of Specialised Arbitration Law Firms
It is always important to formally engage the legal representation, which will help the client to evaluate the true cost of international arbitration, and with a better understanding of the overhead costs, they will have a better understanding of how to reduce the same.
Clients can also ask for lawyers who have significant previous arbitration experience than court proceedings. Specialized arbitration law firms may turn out to be a perfect fit over here as they may charge more competitive legal fees but they may lower the head of costs.
The Benefits of Fast Track Arbitration Clauses
The use of fast-track arbitration clauses in contracts cuts down the clauses by half. Parties with smaller contracts should only use fast-track arbitration clauses that have a time cut-off time and with lower procedural mechanisms available to both the parties’ counsel should if there is a legal dispute.
Fast-track arbitration norms help to speed up the arbitration procedure quickly and can include provisions that limit the dispute duration. Parties can also agree upon fast-track arbitration after a dispute has arisen, although this is more difficult.
Bringing Cost-Effective Experts to the Table
Like lawyers, the rates as charged by quantum experts, and some legal experts, vary from situation to situation or case to case. The cost of quantum experts can go up to several hundreds of thousands of USD or more.
You can encourage your lawyer to opt for high-value quantum experts and provide various multiple quotations for their services, so you can settle for someone who is not only well-qualified but also proves to be cost-effective in the long run. If in your case you do not require any quantum expert or legal expert then you may probably not bring him to the table.
Use of Third Party Funders
Always use third-party funders to pay for the case. Third-party funders in fact can help reduce 100% of the costs of any given case. However, the only downside will be to keep a large percentage of the total amount you may award.
Also, since it is a time-consuming process and you only get third-party funding for only the largest cases. Seek an alternative to third-party funding and ask your legal counsel to take a case on a full or partial success fee. Although jurisdictions may include certain restrictions imposed by bar rules in lieu of success fee.
Avoid the Bifurcation of Arbitration Procedure
Focus on the importance of avoiding the arbitration bifurcation proceeding to your counsel unless one chooses to decide on the number of legal issues to decide upon. Many times the bifurcation and trifurcation of international arbitration can bring up extra costs to the table, ensuring that instead of one there is more than one arbitration that takes place. One should avoid bifurcation unless of course that splitting up a procedure will prove to be cost-effective in the long run.
Consider these points to make the International Arbitration procedure less expensive and smoother.