Emergency Arbitration Costs

Emergency arbitration has become a vital tool for commercial parties needing swift interim relief before a full arbitral tribunal is constituted. Yet one aspect often overlooked with regard to emergency arbitration is cost. Parties tend to focus on urgency and strategy, overlooking the financial implications of launching emergency proceedings. Understanding emergency arbitration costs is not simply an administrative concern: it can directly shape litigation strategy, risk allocation, negotiation leverage, and even the credibility of the relief sought.

The costs of an emergency arbitration are typically made up of two components: (1) institution fees and (2) legal fees. A table summarising the costs that parties can expect to incur in emergency arbitrations administered by the Hong Kong International Arbitration Centre (“HKIAC”), the International Chamber of Commerce (“ICC”), the London Court of Arbitration (“LCIA”), the SCC Arbitration Institute (“SCC”), and the Singapore International Arbitration Centre (“SIAC”), as well as the timing of their payment, can be downloaded here.

This note will examine both cost categories in further detail below.

1. Institution Fees

The first component of emergency arbitration costs is institution fees – the fees paid to the institution administering the arbitration. These fees naturally differ depending on which institution has been chosen by the parties, but they typically are comprised of (1) application or administration fees and (2) fees and expenses of the emergency arbitrator.

A. Application/Administration Fees

The first part of the institution fees that must be paid to commence emergency arbitration is the application or administration fees. These fees typically cover the costs of the institution administering the arbitration.

The table below shows the application/administrative fees charged by each arbitral institution:

B. Emergency Arbitrator Fees and Expenses

The next, and most significant, part of the institution fees is dedicated to the payment of the emergency arbitrator’s fees and expenses. An emergency arbitrator is expected to respond quickly and efficiently to requests for emergency measures and must be compensated for doing so.

The table below shows the base emergency arbitrator fees charged by each institution:

C. Payment of Institution Fees

Typically, in an emergency arbitration, all institutional costs are paid up front in the form of a deposit by the party applying for the appointment of the emergency arbitrator. However, in most cases, this deposit may be adjusted according to the needs of the case.

For HKIAC emergency arbitration, the applying party must pay a deposit of HKD 250,000 on the date of the application to cover both the administrative fees and the emergency arbitrator’s fees and expenses. HKIAC may, at any time during the emergency proceedings, request additional deposits to cover any increase in the emergency arbitrator’s fees or HKIAC’s emergency administrative fees, taking into account, inter alia, the nature of the case and the nature and amount of work performed by the emergency arbitrator and HKIAC.

For ICC emergency arbitration, the applying party must pay USD 40,000 with its application, covering the administrative expenses and the emergency arbitrator’s fees and expenses. The ICC may, at any time during the emergency arbitrator proceedings, decide to increase the emergency arbitrator’s fees or the ICC administrative expenses, taking into account, inter alia, the nature of the case and the nature and amount of work performed by the emergency arbitrator and the ICC.

For LCIA emergency arbitration, the applying party pays a special fee of GBP 35,000 upon submission of its application to cover the application fee and the emergency arbitrator’s fee. The emergency arbitrator’s fee may be increased by the LCIA at any time during the emergency proceedings if the circumstances of the case are deemed to warrant a higher fee.

For SCC emergency arbitration, the applying party must pay EUR 20,000 excluding VAT, or EUR 25,000 including VAT, upon filing the application. At the request of the emergency arbitrator, the SCC may decide to increase or reduce the fees of the arbitrator or the application fee, with regard to the nature of the case, the work performed by the emergency arbitrator and the SCC, and any other relevant circumstances.

For SIAC emergency arbitration, the application for emergency interim relief must be accompanied by payment of the filing fee of SGD 5,450 (Singapore) / SGD 5,000 (overseas) and a deposit towards the emergency arbitrator’s fees and expenses fixed at SGD 30,000. The SIAC may call for additional deposits from the applicant towards the emergency arbitrator’s fees and expenses.

Parties interested in applying for emergency measures should note that institutions will dismiss a party’s application for emergency arbitration should the fees not be paid.

2. Legal Fees

The second, and typically most significant, head of costs that parties must keep in mind when applying for emergency arbitration is legal fees. Regardless of the institution administering the emergency arbitration, the parties involved must compensate the lawyers for their work drafting submissions and, if necessary, representing the parties at a hearing. The compressed timetable, the intensity of preparation, and the need for immediate strategic decisions all translate into a considerable number of hours of work for the parties’ legal teams.

Due to its commitment to transparency and predictability in costs, Aceris offers reasonable, capped legal fees for representation in emergency arbitrations, allowing clients to benefit from the highest-quality advocacy with clear and upfront cost expectations. Alternatively, clients can opt for legal fees on a competitive hourly basis.

Recovery of Emergency Arbitration Costs

As is generally true with regular arbitration, parties may be able to recover the costs spent on emergency arbitration.

The costs expended by the parties, typically including both the institution fees and the parties’ legal and other costs (hearing costs (if necessary), other incidental costs, etc.), can be allocated by the emergency arbitrator in an order or award, subject to the power of the later-constituted arbitral tribunal to modify or confirm the allocation. In some cases, the emergency arbitrator will save the apportionment of the emergency arbitration costs for the arbitral tribunal altogether.

Arbitrators normally have broad discretion in awarding costs and often take into consideration the respective success of the parties, the contribution of the parties to the efficiency of the proceedings, and any other relevant circumstances of the case.

Conclusion

Emergency arbitration is a valuable tool for safeguarding a party’s rights when urgent action is needed. While the associated costs can arise quickly, they are entirely manageable with a clear understanding of what the process entails. Preparing a realistic budget in advance helps ensure that, should an emergency situation arise, parties can respond confidently and efficiently.

It is also important to remember that emergency arbitration provides temporary protection only. It is designed to stabilise the situation until the main arbitral tribunal is appointed, meaning that the primary proceedings will follow. Planning financially for both phases, from urgent measures to the full arbitration, helps parties approach the process with clarity, confidence, and control.