Article
How To Keep Arbitration Costs Under Control
Arbitration is routinely assumed to be the costlier alternative to litigation. That assumption deserves more scrutiny than it usually gets. Shorter proceedings reduce the interest accruing on a monetary claim where the respondent ultimately loses, and they shorten the period a company must carry a dispute reserve on its books — a factor with real weight for listed entities, where it feeds directly into valuation. Cost, in other words, is not just a function of hourly rates; it is a function of how the process is structured. The choices below are within the parties' control and can materially change the final bill.
Jablonski Kozminski