Costs of arbitration / Article 20 of the ICC Rules / Discretionary power of the Arbitral Tribunal in the allocation and computation of costs

'As a preliminary matter, the Tribunal notes that notwithstanding the absence of any submission by Defendant on the issue of the arbitration costs, Defendant signed the Terms of Reference . . . which expressly entrusted the Arbitral Tribunal with the task of ruling on the arbitration costs.

The Tribunal notes in the first place that, under Article 20 of the ICC Rules, it must settle the issue of the allocation of the legal costs of each party. The Tribunal recalls that it holds in this respect wide discretionary powers.

Secondly the Tribunal notes that Claimant wins his case both on the principle of Defendant's liability and responsibility and on the quantum, the only substantial difference being the one existing between the financial costs claimed and those granted by the Tribunal. The Tribunal notes however that Claimant had agreed in principle to a reduction of his claim on that particular point.

Therefore the inescapable conclusion is that Defendant has to bear the arbitration and expert costs incurred by Claimant.

The Tribunal notes, however, that the fees of Claimant's counsel are four times higher than those paid by Defendant. Ruling in pursuance of its discretionary power, the Tribunal therefore cuts down the fees of Claimant's counsel to an average between those of both parties' counsel.'