Comparative Guides
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Results: 4 Answers
International Arbitration
How will the tribunal approach the issue of costs?
Costs are allocated in accordance with the parties’ agreement. In the absence of such agreement, the losing party bears all costs if the request is accepted entirely, or bears them proportionally to such part of its claim that is granted. The same applies to partially successful counterclaims.

In ad hoc international arbitration, unless the parties have agreed otherwise in the arbitration agreement, the rules on costs are different. Each party bears the fees and expenses of its appointed arbitrator, in the case of a tribunal; if the dispute is referred to a single arbitrator and in the case of the presiding arbitrator of a tribunal, the costs are split equally between the parties.

The allocation of costs pursuant to the Bucharest International Arbitration Court Rules of Arbitration is slightly different. The tribunal may consider all elements which it considers appropriate, including the outcome of any of a party’s claims and the conduct of the parties during the proceedings.

The Rules of Arbitration of the Arbitration Court attached to the Chamber of Commerce provide that unless the parties have agreed otherwise, the tribunal, upon the request of a party, shall order in the award the payment by one party of any reasonable costs incurred by the other party, including costs relating to representation before the tribunal, taking into consideration the result of the arbitration, the manner in which each party contributed to ensuring the efficiency and expeditiousness of the proceedings and any other relevant circumstances.

For more information about this answer please contact: Adrian Iordache from SCA Iordache & Iordache (Iordache Partners)
Are there any restrictions on what the parties can agree in terms of costs in an arbitration seated in your jurisdiction?
There are no such express restrictions in law or practice. However, parties should be wary of references to arbitration which effectively remove a party’s access to justice, as such clauses may fall foul of human rights protections under the Romanian Constitution and Article 47 of the European Convention on Human Rights.

For more information about this answer please contact: Adrian Iordache from SCA Iordache & Iordache (Iordache Partners)