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Cost allocation in ICSID arbitration: theory and (mis)application

Matthew Hodgson

Title:
Cost allocation in ICSID arbitration: theory and (mis)application
Author(s):
Hodgson, Matthew
Date:
Type:
Reports
Department(s):
Columbia Center on Sustainable Investment
Persistent URL:
Series:
Columbia FDI Perspectives
Part Number:
152
Publisher:
Columbia Center on Sustainable Investment
Publisher Location:
New York
Abstract:
In their recent Perspective, James Nicholson and John Gaffney argued for the “costs follow the event” (CFTE) cost-allocation approach to investment arbitration, in contrast to the more traditional “pay your own way” (PYOW) approach. They countered an earlier contribution by Baiju Vasani and Anastasiya Ugale, principally on the basis that a CFTE rule would encourage meritorious claims and discourage weak ones. This contribution to the debate demonstrates that: (1) there is a third approach to cost allocation, referred to here as the “relative success” approach; (2) “relative success” is the dominant approach, but is frequently misapplied in practice; and (3) there is a need for guidance on costs in the International Centre for Settlement of Investment Disputes (ICSID) arbitration rules.
Subject(s):
Cost allocation
Investments--Law and legislation
Law
International law
Finance
Banks and banking
Item views
147
Metadata:
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Suggested Citation:
Matthew Hodgson, , Cost allocation in ICSID arbitration: theory and (mis)application, Columbia University Academic Commons, .

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