Columbia International Affairs Online: Policy Briefs

CIAO DATE: 07/2014

Perspectives on topical foreign direct investment issues

James Nicholson, John Gaffney

June 2014

Columbia Center on Sustainable Investment

Abstract

In their contribution to the FDI Perspectives series, Baiju Vasani and Anastasiya Ugale drew attention to an emerging trend in favor of the so-called "costs follow the event" (CFtE) (or loser pays) approach, which is in contrast to the more "traditional" approach under which parties share the costs of arbitration equally, with each party covering its own legal fees.