Columbia International Affairs Online: Policy Briefs

CIAO DATE: 09/2013

Cost allocation in investment arbitration: Back toward diversification

Baiju S. Vasani, Anastasiya Ugale

July 2013

Columbia Center on Sustainable Investment

Abstract

Some investment arbitration tribunals in the recent years have opined in favor of establishing a single default cost allocation rule based on the parties' relative success in arbitration. The effect of such a default rule, however, might not necessarily resonate with the policy goals of various arbitration fora, ICSID in particular, and calls for harmonization should be reconsidered.