SCC Arbitration Costs

The SCC Arbitration Institute (“SCC”) is an arbitration institution located in Stockholm, Sweden, that resolves disputes in commercial business worldwide. For parties considering SCC arbitration, it is crucial to understand the anticipated costs, payment structure, and likelihood of cost recovery. Familiarity with these factors allows businesses and individuals to plan their budgets effectively and reduce the risk of unexpected financial exposure.

In an SCC arbitration, parties must generally budget for the following heads of cost: (1) SCC fees; (2) legal fees; (3) expert fees (if needed); (4) hearing costs; and (5) other minor costs. A table of SCC arbitration costs can be downloaded here.

Importantly, these amounts are often recoverable from the losing party.

This note will now examine in depth each of the costs associated with an SCC arbitration, particularly one administered under the 2023 SCC Arbitration Rules (“SCC Rules”) and its appendices, particularly Appendix IV – Schedule of Costs.

Heads of Costs in SCC Arbitration

1. SCC Fees

The fees paid to the SCC include the registration fee, the administrative fee, the arbitrators’ fees, and the expenses of both the arbitrators and the SCC itself. They do not include costs for legal representation, expert evidence, hearing costs, or other expenses.

A 2024 SCC report found that in cases with a sole arbitrator, only 15.8% of the total costs paid by the parties were allocated to SCC arbitration fees. In proceedings with three arbitrators, the share devoted to SCC fees rose slightly to 19.2%. The remaining and by far largest portion of costs typically relates to the parties’ legal fees. In other words, arbitration costs are primarily determined by the legal fees charged by counsel.

The fees charged by the SCC are broken down in further detail below:

A. Registration Fee

The first cost to be paid by the claimant in an SCC arbitration is a non-refundable registration fee of EUR 3,000 (Article 7(1); Appendix IV, Article 1).

If the registration fee is not paid when filing the request, the SCC will set a time period for the claimant to pay. If the registration fee is still not paid within that period, the SCC will dismiss the request for arbitration (Article 7(1)).

While non-refundable, the registration fee will be credited to the advance on costs to be paid by the claimant later in the arbitration (Appendix IV, Article 1).

B. Administrative Fee

Parties must also each pay half of an administrative fee to the SCC, which is based on the amount in dispute, as set out in the table below:

The administrative fee will thus range from EUR 3,150 to EUR 95,000 and can be calculated using the Cost Calculator on the SCC’s website.

The amount in dispute is the aggregate value of all claims, counterclaims, and set-offs. Where the amount in dispute is indeterminable, the SCC will determine the administrative fee with regard to all relevant circumstances (Appendix IV, Article 3(2)).

C. Arbitrators’ Fees

To have an arbitrator or arbitrators determine a dispute, the arbitrator(s) must be compensated by the parties.

The fees of the arbitrator or arbitrators are determined with regard to the amount in dispute and fall between a minimum and maximum fee. If the dispute is decided by a sole arbitrator, then the arbitrator’s fees will be calculated according to the table below. If the dispute is decided by a three-member tribunal, then the fees of the chairperson of the tribunal will be calculated in the same manner (Appendix IV, Article 2(1)).

The arbitrators’ fees can be estimated using the SCC Cost Calculator.

Where a three-member tribunal will decide the dispute, the fees of the co-arbitrators (the other two arbitrators, excluding the chairperson) will be calculated at 60% of the fees of the chairperson (Appendix IV, Article 2(2)).

Thus, for an SCC arbitration with a three-member tribunal, where the amount in dispute is EUR 523,000, for example, the chairperson of the tribunal could be paid between EUR 15,230 (15,000 + 1% of 23,000) and EUR 37,410 (36,720 + 3% of 23,000). If the chairperson’s fees were set at EUR 26,320, then each co-arbitrator would be paid EUR 15,792 (60% of 26,320). The total arbitrators’ fees for such a dispute would then be EUR 57,904 (26,320 + 15,792 +15,792).

For the purposes of setting the arbitrators’ fees, the amount in dispute is calculated in the same manner as for the administrative fee.

D. Expenses

In addition to the arbitrators’ fees and the administrative fee, the SCC will fix an amount to cover any reasonable expenses incurred by the arbitrators and the SCC. The expenses of the arbitrators may include the fee and expenses of any expert appointed by the tribunal (Appendix IV, Article 4).

2. Legal Fees

In addition to the above institutional costs, parties must also budget for the legal fees incurred for the work of counsel and their teams, which often represent the most significant portion of total costs, as a hard-fought arbitration case can take over 1,000 hours of work by a party’s legal team.

Aceris Law, valuing transparency and predictability in costs, has made available online its own Arbitration Legal Fee Calculator, based on the amount in dispute. Aceris Law offers reasonable, capped legal fees for legal representation in international arbitrations, ensuring that clients benefit from high-quality advocacy with clear and upfront cost expectations. Alternatively, clients may opt for legal fees on a competitive hourly basis.

3. 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.

If such evidence is required, each party selects its preferred expert and is responsible for that expert’s fees and expenses. However, to preserve the expert’s impartiality and independence, a party-appointed expert’s remuneration may not be linked to the outcome of the case.

4. Hearing Costs

Hearings are an integral part of most arbitrations, and parties must also plan for hearing-related expenses, although this represents only a small portion of the overall arbitration costs. This typically amounts to between USD 2,000 and USD 15,000 per party, though this can vary significantly depending on the case.

The factors that play a role in determining the hearing costs include:

• • Whether the hearing is hosted virtually 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.
  • 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.

Further, if an arbitration case is bifurcated, the parties may have to fund two hearings – one on the preliminary issues and, if the arbitration proceeds, one final hearing on the merits of the dispute. In some cases, there may also be a separate hearing on quantum, which can further increase the overall costs of the proceedings.

Typically, hearing costs are split equally between the parties, but they can then be recovered in the award.

5. Other Minor Costs to Consider

Parties must also consider that other discrete costs may arise throughout the arbitration process.

For example, arbitration often involves a document production phase, in which a party may request that the opposing party produce documents relevant to the case. In some cases, this may require a party to wade through a significant number of documents to produce the specific category requested, which can take time and lead to the generation of additional expenses.

Another common cost arises from translations. When parties, witnesses, or documents originate from different jurisdictions, translations of pleadings, evidence, witness statements, or exhibits into the language of the arbitration may be required. These translation costs can be substantial, particularly in complex or multilingual cases.

As another example, in some instances, tribunals may request that submissions be made both electronically and in hard-copy format or via flash drive. In these cases, parties must also pay for printing and/or the necessary equipment, as well as courier services, in order to fulfil the tribunal’s request.

Thus, parties must always be ready for additional minor, unforeseen costs that may arise throughout the arbitration process.

Timing of Payment in SCC Arbitration

At the beginning of the arbitration process, the parties will be asked to pay an advance on costs, the amount of which will be determined by the SCC (Article 51(1)) and shall correspond to the estimated amount of (1) the fees of the tribunal, (2) the administrative fee and (3) the expenses of the tribunal and the SCC (Articles 49(1), 51(2)). During the arbitration, if the tribunal requests or if it is otherwise deemed necessary, the SCC may order the parties to pay additional advances (Article 51(3)).

Each party will be asked to pay half of the advance on costs, which the SCC can decide may be provided in the form of a bank guarantee or other security (Article 51(8)), but if a counterclaim or set-off is submitted, the SCC may determine that each party should pay advances corresponding to its claims (Article 51(3)).

If a party, often the respondent, fails to make the required payment, the other party may make the payment on its behalf and request that the arbitral tribunal make a separate award for reimbursement of the payment (Article 51(6)). However, if the payment is still not made, the SCC will dismiss the case, or, if the case has already been referred to the tribunal, the tribunal will terminate the case (Article 51(5)).

In any event, the parties are jointly and severally liable to the arbitrator(s) and the SCC for the costs of the arbitration (Article 49(7)).

Recovery of Costs in SCC Arbitration

Article 49 of the SCC Rules provides that, at the request of a party, unless otherwise agreed, the tribunal must apportion the costs of the arbitration, including the fees of the tribunal, the administrative fee and the expenses of the tribunal and the SCC, between the parties, having regard to (1) the outcome of the case, (2) each party’s contribution to the efficiency and expeditiousness of the arbitration and (3) any other relevant circumstances.

Article 50 of the SCC Rules also provides that, unless otherwise agreed between the parties, the tribunal may order one party to pay any costs reasonably incurred by the other party, including legal fees, expert fees, etc., having regard to the same factors listed above. Thus, party costs are recoverable.

Conclusion

SCC arbitration offers a well-established, efficient, and internationally respected forum for resolving commercial disputes. Its transparent fee structure and predictable procedures make it an attractive option for parties seeking a balanced combination of flexibility and institutional support. Nevertheless, careful financial planning remains essential, as the overall cost of arbitration depends on various factors such as the complexity of the dispute, the choice of legal representation, and the need for expert evidence or hearings. With thoughtful preparation and informed guidance, parties can approach SCC arbitration strategically, ensuring that the process remains both effective and cost-efficient in achieving a fair resolution.

Parties should also bear in mind that obtaining an SCC award may not be the final step. It is prudent to budget for possible enforcement proceedings, should a party refuse to respect the arbitral award.

If you are contemplating SCC arbitration, whether as claimant or respondent, and would like more detail on the costs involved, Aceris Law would be pleased to provide tailored guidance.