VIAC Arbitration Costs

The Vienna International Arbitral Centre (“VIAC”) is an arbitral institution located in Vienna, Austria.

With its extensive experience and expertise in alternative dispute resolution (ADR), the VIAC team offers comprehensive support in managing international arbitration. Located in the heart of Europe, VIAC has developed a deep understanding and longstanding tradition in handling matters across the Central, Eastern, and Southeastern European regions (CEE/SEE). Moreover, VIAC is committed to advancing ADR practices in regions and markets where such mechanisms are still emerging, viewing this as a key part of its mission.

Proceedings administered by the VIAC involve several types of costs, partially defined in the 2021 VIAC Rules of Arbitration (“VIAC Rules”).

The overall costs of a VIAC arbitration comprise (1) the administrative fees of VIAC, (2) legal fees (typically the largest component), (3) expert fees (if needed), (4) hearing costs, and (5) other minor costs. A table of VIAC arbitration costs can be downloaded here.

To support users, VIAC provides an online Cost calculator on its website, allowing parties to estimate arbitration administrative and tribunal fees based on the disputed amount.

Below is a structured overview of the typical cost components in VIAC arbitration proceedings:

VIAC Fees

Registration Fee

A Registration Fee, stipulated in Annex 3, must be paid by the claimant upon commencing arbitration within the time limit set by the Secretary General (Art. 10(1) of the VIAC Rules). This fee is non-refundable and is not deducted from the advance on costs (Art. 10(3)).

Administrative Fees for Arbitral Proceedings

The Secretary General is responsible for calculating and determining the administrative fees and the arbitrators’ fees based on the amount in dispute and the Schedule of Fees (Annex 3, Art. 44(2)).

For arbitral proceedings, the following administrative fees listed in Annex 3 apply:

For instance, the maximum administrative fee for disputes over EUR 40,000,000 is EUR 75,000 (EUR 52,500 + EUR 22,500).

The administrative fee is paid from the advance on costs fixed by the Secretary General (Art. 42(1)).

Arbitrators’ Fees

The arbitrators’ fees are also paid from the advance on costs fixed by the Secretary General (Art. 42(1)).

The fees depend on the amount in dispute. For example, for a dispute worth EUR 100,000, the fee for a sole arbitrator is about 6 percent of that amount (minimum EUR 3,000). As the amount in dispute increases, the percentage decreases according to a sliding scale shown in Annex 3. The total fees also depend on whether the case is decided by a sole arbitrator or a three-member tribunal.

The fees set out in Annex 3 apply to sole arbitrators and are set within the following ranges:

For cases decided by three arbitrators, the total fees are two-and-a-half times those of a sole arbitrator, as set out in Article 44(8) of the VIAC Rules. The Secretary General can adjust these fees by up to 40 percent higher or lower, depending on the complexity of the case or the efficiency of the proceedings (Art. 44(8)).

If there are more than two parties, the administrative and arbitrators’ fees increase by 10 percent for each additional party, up to a maximum increase of 50 percent (Art. 44(4)).

If a tribunal secretary is appointed, their costs are included in the overall arbitration costs (Art. 44(1)(1.1)).

How Are These Costs Paid: The Advance on Costs System

The Secretary General sets an advance on costs that covers the estimated administrative fees of VIAC, the arbitrators’ fees, and other expected expenses, including any applicable VAT. This advance is calculated separately for the claim and any counterclaim (Art. 42(1)).

In other words, before the arbitration begins, both sides must deposit funds to cover the expected costs of running the case. These funds are then used to pay the tribunal’s fees, VIAC’s administrative charges, and procedural expenses such as hearing costs as the case progresses.

This advance is generally paid in equal shares by the parties within 30 days upon receipt of the request for payment (Art. 42(4)). If one party fails to pay its share, the other party(ies) may cover the outstanding amount within 30 days upon receipt of the request. This does not relieve the non-paying party of its obligation to pay its share of the advance on costs in accordance with Art. 42(9).

In principle, the arbitral tribunal addresses only those claims or counterclaims for which the advance on costs has been paid in full. Failure to pay may result in the suspension or termination of the proceedings regarding the relevant claims (Art. 42(11)).

Legal Fees

Legal costs associated with counsel and their teams often constitute the largest share of overall expenses. A contested arbitration can require more than 1,000 hours of work from a party’s legal team. Committed to transparency and cost predictability, Aceris Law provides an online Arbitration Legal Fee Calculator that estimates fees based on the amount in dispute. Aceris Law offers reasonable, capped legal fees for representation in international arbitrations, allowing clients to receive high-quality advocacy with clear, upfront pricing. Alternatively, clients may choose to engage Aceris Law on the basis of reasonable hourly rates.

As set in Article 44(1)(1.2), the costs of the arbitration consist of the parties’ costs, including the reasonable expenses of the parties for their legal representation.

Expert Fees

Expert evidence is frequently used in international arbitration. Experts are appointed by parties to give their independent opinion on issues beyond the arbitral tribunal’s expertise, such as quantum, delays, and foreign law, often in the form of expert reports and expert testimony at the final hearing, thereby assisting the arbitral tribunal in its decision-making process.

Under the VIAC Rules, the arbitral tribunal may also appoint experts if it deems necessary. In such cases, the tribunal must inform the Secretary General to arrange for the corresponding advance on costs (Arts. 29(1) and 43(1)-(2)). The appointment may proceed only once these costs are fully covered. Experts appointed by the tribunal may be challenged by analogy with the rules on challenging arbitrators, with the tribunal deciding on such challenges (Arts. 20(1)-(2) and 23).

Hearing Costs

Parties to a VIAC arbitration should also consider costs and expenses related to the hearing. Factors that play a role in determining the hearing costs also include:

• Whether the hearing is hosted virtually (less expensive) or in person.
• If it is in person, what venue will be reserved and during what period of the year.
• The length of the hearing.
• The number of people attending (tribunal, party representatives, legal teams, experts, witnesses, etc.).
• The cost of a court reporter (which may include travel and lodging).
• The cost of lunch and coffee breaks for the participants.
• Whether translation services will be required.
• The travel and hotel costs for the party, its legal team, and the arbitral tribunal.
• Other costs, such as printing fees or fees for electronic data-hosting services.

Other Minor Costs

“Other costs” include a range of reasonable expenses and additional procedural costs not covered by the main fee schedules. These may include printing and mailing of submissions, translation services, document production, courier charges, and other incidental disbursements incurred during the arbitration. Such costs are typically paid as they arise and are generally minor compared with the fees of the arbitral tribunal, counsel, and experts.

Allocation of Costs

Under the VIAC Rules, the tribunal decides how the costs are to be allocated between the parties in its decision on costs (Art. 38). Under Article 44 of the VIAC Rules, the costs of the arbitration include the administrative fees of VIAC, the arbitrators’ fees and reasonable expenses, the parties’ reasonable legal costs, and any other expenses related to the arbitration, such as translation, interpretation, or hearing costs.

The main rules for the allocation of costs are:

• Tribunal’s discretion: Unless the parties have agreed otherwise, the tribunal decides how to allocate costs at its own discretion (Art. 38(2)).

• Conduct of the parties: The tribunal may consider the conduct of the parties and their representatives (Art. 13), including whether they acted in a manner that promoted the efficient and cost-effective conduct of the proceedings (Art. 38(2)).

• Fixing of legal costs: The tribunal determines the amount of reasonable legal representation and other costs in its award (Art. 44(2)).

• Comprehensive decision: The final award typically includes a decision on all costs of the arbitration, covering administrative fees, arbitrators’ fees, legal fees, and other procedural expenses.

Conclusion

Gaining a clear understanding of the cost structure of arbitrations administered by the VIAC is essential for effective decision-making and accurate budgeting. By anticipating institutional, legal, expert, and hearing expenses, parties can reduce unforeseen costs and contribute to a more efficient arbitration process.

It is also important to note that even after a final award is issued, additional costs may be incurred if enforcement proceedings become necessary due to non-compliance by the losing party.

If you are considering commencing an arbitration under the VIAC Rules, or if one has been initiated against your company, and would like more information about the potential costs, please do not hesitate to contact Aceris Law.