Arbitration Can Be Expensive

Litigation Funding - Arbitration Funding - Parabellum Capital

Arbitration is an extremely popular mechanism for the resolution of commercial disputes.  One of the main advertised benefits of arbitration is that it is more cost-effective than traditional litigation.  While this is often true, it does not mean that arbitration is always cheap.  Indeed, filing, administrative, and arbitrator fees in major disputes can be substantial.

In addition, while arbitration costs are typically recoverable by the prevailing party, the risk of losing alone can deter parties from bringing an arbitration to enforce their rights.

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