What does NAI arbitration cost?


The costs of an NAI arbitration are set out in the Arbitration Rules.

In short, the costs can be divided into several categories.

First of all, there are the NAI's administration costs. These are calculated on the basis of a scale according to the amount in dispute. The scale ranges from EUR150 (amount in dispute less than EUR5000) to a maximum of EUR10,000 (amount in dispute greater than EUR2,000,000).

Then there are the fees and disbursements of the arbitrator(s). The fees are determined on the basis of three criteria: the time spent on the case by the arbitrator(s), the amount in dispute and the complexity of the case. In practice, the important factors are the number of hours spent by the arbitrator on the case and the hourly rate agreed with the arbitrator in question before his appointment by the secretariat. The arrangements are based on guidelines established by the Governing Board.

One should be aware in this regard that in general the total cost of three arbitrators is higher than that of a single arbitrator. In principle, therefore, if the amount in dispute is relatively small (less than EUR150,000), one arbitrator is recommended.

A third category of costs consists of those which are not necessarily incurred in every arbitration, namely the costs of a secretary (clerk), expert and interpreter.

Lastly, there will also be the costs for legal assistance, should a party wish to be represented by a lawyer.

In the light of all this, it is difficult to estimate the total cost of an arbitration process which has yet to be conducted. Parties can use the above details to estimate the costs themselves. In doing so, one must also weigh up the chances of a successful outcome, as the losing party will be required to pay the costs, except in special cases at the discretion of the arbitral tribunal.