Costs and Funding

Arbitration | Financial

We advise on arbitration costs, cost allocation, security for costs, and third-party funding arrangements to help clients manage the financial aspects of international disputes.

Overview

Managing Arbitration Economics

Arbitration involves significant costs including institutional fees, arbitrator fees, legal fees, and expert costs. MC Law's Costs and Funding practice helps clients manage these economics through strategic planning and available funding mechanisms.

Cost Estimation and Budgeting

Understanding likely costs informs dispute strategy. We provide cost estimates based on case complexity, likely duration, and procedural approaches. We help clients budget for arbitration and make informed decisions about pursuing or defending claims.

Cost Allocation Tribunals allocate costs between parties. We develop strategies for favorable cost allocation, document costs appropriately, and present compelling arguments on cost shifting. We understand how different institutions and arbitrators approach costs. Security for Costs Claimants may be required to post security. We pursue security for costs against claimants unlikely to satisfy adverse awards. We also defend against security applications and advise on providing security when required. Third-Party Funding Funders provide capital to pursue arbitration in exchange for a share of recoveries. We advise on funding availability, structure funding arrangements, and address disclosure and conflict issues. We help clients access capital to pursue meritorious claims. Contingent Fee Arrangements Alternative fee structures can reduce client risk. We discuss contingent, hybrid, and success-based fee arrangements appropriate for specific disputes. We structure arrangements that align incentives while managing ethical requirements. Cost Recovery Prevailing parties may recover costs. We maximize cost recovery through proper documentation, persuasive advocacy, and strategic presentation. We help clients recover appropriate costs when they prevail.

Frequently Asked Questions

Costs include institutional administration fees, arbitrator fees and expenses, legal representation fees, expert fees, and hearing costs. Total costs depend on dispute complexity, tribunal size, and hearing duration, and can range from tens of thousands to millions of dollars.

Cost allocation varies by jurisdiction and rules. Many systems follow a 'costs follow the event' principle where the losing party pays, while others apply an American-style rule where each party bears its own costs. Tribunals have discretion in apportioning costs.

Third-party funding involves a funder providing capital to finance arbitration in exchange for a share of any recovery. It enables parties with strong claims to pursue them despite financial constraints, but raises disclosure and ethical considerations.

Recovery of legal costs depends on the applicable arbitration rules, the law of the seat, and tribunal discretion. Most international arbitration rules empower tribunals to award costs, but full recovery is not guaranteed even for the prevailing party.

Security for costs requires a party to provide a financial guarantee for the opposing party's costs. Tribunals may order security when there is reason to believe the requesting party would be unable to satisfy a costs award, though standards vary by institution and seat.

Fair use is a defense that permits limited use of copyrighted material without permission. Courts consider four factors: the purpose and character of use (commercial vs. educational, transformative vs. copying), the nature of the copyrighted work, the amount used, and the effect on the market. Fair use is highly fact-specific.

For works created today by individual authors, copyright lasts for the life of the author plus 70 years. Works made for hire and anonymous/pseudonymous works are protected for 95 years from publication or 120 years from creation, whichever is shorter. Older works may have different terms.

Yes, software code is protected by copyright as a literary work. Both source code and object code can be registered. However, copyright protects the expression of ideas, not the underlying functionality—patent protection may be more appropriate for novel methods and processes implemented in software.

Our virtual legal services offer streamlined, cost-effective solutions for common copyright needs. Services like copyright registration, assignment agreements, and DMCA takedowns are available online with fixed, transparent pricing. You get the quality of a top IP firm with the convenience of digital delivery.

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