LawFlash

SIAC Publishes Average Cost and Duration of Arbitrations

October 12, 2016

The study shows that SIAC arbitrations may provide faster dispute resolution than LCIA arbitrations.

On 10 October, the Singapore International Arbitration Centre (SIAC) published its study on the average cost and duration of 98 arbitrations filed under the SIAC Rules in which a final award was issued between 1 April 2013 and 31 July 2016.

The analysis included the SIAC’s administration fees and expenses and the tribunal’s fees and excluded the legal and consultants’ fees and the tribunal’s expenses and taxes.

SIAC defined an arbitration’s duration as the period between when a Notice of Arbitration is filed until the Final Award is published, inclusive of any stays.

On 3 November 2015, the London Court of International Arbitration (LCIA) published its analysis on the average cost and duration of LCIA arbitrations for the period 1 January 2013 to 15 June 2015.

SIAC and LCIA Findings Compared

 

SIAC

LCIA

Duration of Arbitration

 

 

All tribunals (mean)

13.8 months

20 months

All tribunals (median)

11.7 months

16 months

Sole arbitrator (mean)

13 months

18.5 months

Sole arbitrator (median)

11.3 months

15 months

Three-member tribunal (mean)

15.3 months

21 months

Three-member tribunal (median)

11.7 months

19 months

Total Costs of Arbitration

 

 

Mean

US$80,337

US$192,000

Median

US$29,567

US$99,000


A comparison of the data may suggest that SIAC arbitrations provide quicker dispute resolution. However, no data is available from either study regarding the amount in dispute or the complexity of the issues under consideration. The SIAC’s study suggests that most of the 98 cases were below US$5 million. The LCIA did not publish the average value of the disputes surveyed.

The studies also do not reflect the time that tribunal members spent on each case. Under the LCIA, tribunal members charge an agreed-on hourly fee. Under the SIAC, save for exceptional circumstances, tribunal members are subject to an ad valorem system in which the tribunal’s fees are determined by the amount in dispute.

Regardless, armed with the the SIAC and LCIA data, parties going to arbitration now have a clearer indication of an arbitration’s average cost and duration administered by these institutions.

Contacts

If you have any questions or would like more information on the issues discussed in this LawFlash, please contact any of the following Morgan Lewis lawyers, who are directors of Morgan Lewis Stamford LLC, a Singapore law corporation affiliated with Morgan Lewis & Bockius LLP:

Singapore
Justyn Jagger
Stephen Cheong