December Edition 2019

9 award is final and binding. Challenges to awards are limited to three grounds: the award made without jurisdiction; serious irregularity; appeal on point of law,” she adds. “Israeli companies should be advised that an international arbitration will be expensive to run, will take between 18 months to 2 years to run and will be confidential. The beauty of an arbitration is that the parties can choose the arbitrators and find someone with expertise to fit the dispute in question.” With more Israeli parties using third party funding to pay for costs, Israeli companies should appreciate that there are no rigid rules. “Allocation of costs can be determined by the arbitral tribunal but can also be determined by the parties themselves or the court (although these are rarer). In practice, the losing party will usually pay 70% of the winning party’s costs,” points out Coleman. “Generally, tribunals seated in London will order that the successful party will recover its costs of arbitration (which includes legal fees, payments of arbitrator fees or institution fees, expert witness fees). The Tribunal has full discretion to award costs as it sees appropriate in each case. Agreements as to the allocation of the costs of arbitration entered into prior to a dispute arising are unenforceable in England by virtue of s.60 Arbitration Act 1996,” adds Darowski. With regards to costs,Coleman adds: “ICC calculates costs on value of claims; LCIA calculates costs on hourly basis. In terms of confidentiality, “the ICC provides no express confidentiality provisions; under the LCIA rules arbitral proceedings and materials created are all confidential. That said, most ICC arbitrations contain confidentiality requirements in their procedural orders.” It may be over 200 years since Benjamin Franklin asked the question but with creativeways topay,anemphasis ondiversity and thenon-stop technological train, the arbitration system and its processes are increasingly transforming the way companies resolve their disputes. Third Party Funding and Dealing with Costs