The London Court of International Arbitration (LCIA) has recently announced a package of updates, which include a revised Schedule of Costs, revised terms and conditions, an updated policy on receipt of funds, and an updated Guidance Note for Parties and Arbitrators. These changes are aimed at ensuring the LCIA’s approach remains user-friendly and reflects best practice.
The revised Schedule of Costs will come into effect on 1 December 2023 and will apply to LCIA arbitrations registered on or after that date. The key changes include setting the fees of the arbitral tribunal by reference to hourly rates in a range of £250-£650, an increase in the top hourly rate for arbitrators from £500 to £650, and setting the hourly charging rates for tribunal secretaries by reference to a range from £100 to £250. Additionally, the application fee for the appointment of an Emergency Arbitrator will increase from £9,000 to £10,000, and the Emergency Arbitrator’s fee will increase from £22,000 to £25,000. The LCIA Secretariat’s hourly charging rates will also rise by 7% to reflect increased costs due to inflation.
The revised terms and conditions for other services provided by the LCIA will also come into effect on 1 December 2023. The revised conditions will apply to all new requests for such services on or after that date where the LCIA agrees to provide them in the proceedings. The terms and conditions apply to certain services that the LCIA provides in relation to arbitrations that it does not administer, including fundholding, the administration of and/or provision of specific services in UNCITRAL arbitrations, the holding of funds by way of security, and appointment only services in adjudication, expert determinations, and ad hoc arbitrations. The revised terms and conditions broadly align these services with the approach to cases administered pursuant to the LCIA Rules.
The LCIA has clarified that it will update its policy on the receipt of funds from 1 December 2023. The policy will only accept payments from the parties or from an account held in the name of a person or law firm who is authorized to act on legal matters for a party. If payments are made from other accounts, the LCIA retains the sole discretion to return the payment to the account from which it is paid.
Finally, the updated Guidance Note for Parties and Arbitrators has been published, which integrates the three previous Guidance Notes and provides “best practice” guidance on the application of the LCIA Rules 2020. The new Guidance Note reflects the revised Schedule of Costs and is intended to be a useful resource for practitioners to read alongside the rules.
Overall, the LCIA’s package of updates demonstrates its commitment to ensuring its rules and approach reflect best practice and remain user-friendly. While the revised Schedule of Costs may mean that parties will experience an increase in institutional costs as well as an increase in arbitrator costs for some arbitrations, these increases appear to be in line with the market, and the flexibility afforded by these changes should give parties comfort that the appropriate fee scales will be fixed on a case-by-case basis.
