Report on costs of arbitration and apportionment of costs under the SCC Rules
The SCC has released an update of its report on the costs of arbitration and apportionment of costs under the SCC Rules from 2016.
The 2024 Report provides fresh data from 221 qualifying arbitral awards on the size of disputes, their duration, and costs, as well as how Arbitral Tribunals and Arbitrators have ultimately apportioned the costs of arbitration and costs for legal representation.
For the first time, data on the SCC Rules for Expedited Arbitrations has been included.
Published
Key findings – SCC Arbitration Rules
Some of the SCC’s key findings from the 2024 Report, encompassing comparisons with the 2016 Report, include:
Cost
- The mean costs of legal representation are between 13,5 and 12,85 times the costs of arbitration.
- Sole arbitrator:
- 93,1% costs for legal representation
- 6,9% costs of arbitration
- Three Arbitrators:
- 92,8% costs for legal representation
- 7,2% costs of arbitration
- Sole arbitrator:
- Amounts in dispute have slightly increased.
- The costs of arbitration represent even less of the parties’ total costs.
Time
- SCC arbitration has in general become more time efficient.
- The improvement in time efficiency coincides with the SCC’s numerous digital innovations, including the SCC Platform.
Apportionment
- “Winner takes it all” increasingly when it comes to apportionment of costs.
- A harmonization of practice between Sweden and abroad.
Arbitrators
- There is more diversity among arbitrators appointed under the SCC Rules.
Key findings – SCC Rules for Expedited Arbitration
For the first time, data on the costs and apportionments of cases decided under the SCC Rules for Expedited Arbitrations has been included. Among the key findings include:
- The mean of costs for legal representation are over 10 times the costs of arbitration.
- The 2024 Report confirms the SCC Expedited Arbitration Rules have seen particular success in Sweden.
- The SCC’s combination clauses have also been a success:
- 36% of the analysed expedited arbitrations invoked a combination clause; and
- 88% of these combination clauses provide the SCC Board with the discretion to determine the rules.
- The expedited timeframes applicable under the SCC Expedited Arbitration Rules are being met.
The 2024 Report reinforces the 2016 Report’s conclusions that most of the costs incurred are within the parties’ control. The parties have significant ability to influence the total costs by choosing the most appropriate rules for their dispute as well as the right legal counsel. Parties may then negotiate appropriate fee structures with their legal counsel in order to limit costs.
The 2024 Report demonstrates that the SCC Rules and arbitration “the Swedish way” continue to be market-leading in ensuring efficiency and efficacy in arbitration for cases of varying size and complexity. It reinforces the earlier conclusions that most of the costs incurred are within the parties’ control.
SCC will continue to monitor the issue of costs and endeavours to ensure efficiencies of time, cost, and quality.