How much does it cost to arbitrate?
Arbitration can be less expensive than public Court litigation because it is a faster and less complicated route to bringing litigation to an end.
- Costs for the services of the Arbitrator/arbitration hearing and the cost of the Arbitrator’s written Award (judgment).
These costs are normally shared and paid equally by the parties. Arbitrators charge on an hourly or daily rate and then usually a set price for the written Award.
Rates vary depending on the Arbitrator and the type of case but hourly rates could range between €750.00 – €1500.00 per hour.
- Costs for legal representation or expert witnesses.
The normal course is that the winning party’s legal fees are paid by the party who loses the case.
The rule is the winning side would have their legal fees and expert witness fees paid by the other side. This is known as Costs Follow the Event.
But there can be an agreement made between the parties on legal costs prior to the arbitration commencing e.g. that each side pays their own legal fees irrespective of who wins or that legal fees are paid e.g. 75%/25% (losing side pays 75% of the fees of the winning side).
Parties can choose not to have legal representation at an Arbitration Hearing but it is wise to have legal representation.
