Not a High Court, but High Cost? – A Discourse on High Cost in International Commercial Arbitration Today

The world of international arbitration has seen an unprecedented growth. There are increasingly more new international arbitration centres globally today and countries around the globe are competing to become the next international arbitration hub. Existing arbitral institutions meanwhile continue to work on building their status as the preferred centre for parties to resolve their disputes. In this respect, the main actor in arbitrations is always the arbitrator. No doubt lucrative fees and prestige attached to the appointment as arbitrator are luring many to this ‘vocation’, changing the landscape of arbitration practice rather substantially today. But the success and growth of arbitration also bring with it some problems. One of the chief concern of contemporary arbitration practice is the high costs of arbitration which have become prohibitive and potentially bringing the entire practice into disrepute. Yet, the cause of it all cannot be squarely attributed to the arbitrators, lawyers, arbitrants or arbitral institutions. In this ecosystem of arbitration is link between all the actors thus a systemic problem. This article attempts to identify the factors causing high costs of arbitration but also analyse the various arguments and facts surrounding this controversial subject, not all entirely censurable or reprovable. Some constructive suggestions are framed on how some of the current practices within the arbitration industry can be ameliorated.