Arbitration Arbitration Costs, Fees, and Case Management

Question 1

Under AAA Commercial Arbitration Rules, how are filing fees generally calculated?

Accepted Answer

Based on a sliding scale tied to the amount of the claim

Answer

A flat fee of $500 regardless of claim size

Answer

Per arbitration day actually used

Answer

A percentage of the final award amount

Question 2

What is the typical basis for arbitrator compensation in commercial arbitration?

Accepted Answer

An hourly or daily rate negotiated or set by institutional rules

Answer

A fixed government-set rate per case

Answer

A percentage of the damages awarded

Answer

Pro bono service required by professional licensing

Question 3

What does the 'English rule' (fee-shifting) regarding costs mean in international arbitration?

Accepted Answer

The losing party typically pays the prevailing party's legal fees and arbitration costs

Answer

All arbitration hearings must be conducted in English

Answer

ICC arbitration administered from London follows different cost rules

Answer

English law governs all international arbitration cost disputes

Question 4

What is an 'advance on costs' in ICC arbitration?

Accepted Answer

A deposit required from both parties to fund arbitrator fees and ICC administrative costs during the proceeding

Answer

An initial payment to the opposing party to show good faith

Answer

A pre-payment of the expected award to facilitate settlement

Answer

A court bond required for enforcement of an interim award

Question 5

What does 'expedited procedures' under AAA Commercial Rules mean for cases below a certain threshold?

Accepted Answer

All cases automatically go to a single arbitrator with limited discovery and a shortened schedule

Answer

Cases are automatically resolved within 24 hours

Answer

Parties waive the right to any discovery

Answer

The entire arbitration is conducted by written submissions only with no hearing

Question 6

What is 'third-party funding' in arbitration and what disclosure obligations does it raise?

Accepted Answer

When an external funder finances a party's arbitration costs in exchange for a share of proceeds; may require disclosure to check for arbitrator conflicts

Answer

When a law firm fronts client costs to be repaid from the award; no disclosure required

Answer

When a party's insurer covers defense costs; disclosed only to the arbitral institution

Answer

When arbitrators are paid by the parties equally; disclosed in the arbitral award