PCA Rules—costs
Produced in partnership with Jonathan Lim of Wilmer Cutler Pickering Hale and Dorr LLP
PCA Rules—costs

The following Arbitration guidance note Produced in partnership with Jonathan Lim of Wilmer Cutler Pickering Hale and Dorr LLP provides comprehensive and up to date legal information covering:

  • PCA Rules—costs
  • Definition of costs
  • Fees and expenses of arbitrators
  • Allocation of costs
  • Deposit of costs

This Practice Note sets out how the costs of the arbitration are to be fixed in proceedings under the Permanent Court of Arbitration (PCA) Arbitration Rules (PCA Rules), including how the fees and expenses of the arbitrators are to be determined, how the parties’ legal costs are to be allocated and how and when deposits for the costs of the arbitration are to be paid.

Definition of costs

PCA Rules, art 40 addresses the costs of the arbitration. It is similar to the equivalent provision of the UNCITRAL Arbitration Rules (UNCITRAL Rules), but PCA Rules, art 40(2)(f) includes the 'fees and expenses of the International Bureau' within the definition of 'costs'.

PCA Rules, art 40(1) provides that the tribunal shall fix the costs of arbitration in the final award, or if it deems appropriate, in another decision.

PCA Rules, art 40(2) provides an exhaustive list of potential fees and expenses that are included within the costs of arbitration. These are:

  1. the fees of the tribunal stated as to each arbitrator

  2. the reasonable travel and other expenses occurred by the arbitrators

  3. the reasonable costs of expert advice and other assistance

  4. the reasonable travel and other expenses of witnesses as approved by the tribunal

  5. the legal and other costs incurred by the parties in relation to the arbitration as the tribunal determines is r