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BIICL publishes new study on costs, damages and duration in investor-state arbitration

The BIICL Investment Treaty Forum in partnership with Allen and Overy is delighted to announce the publication of our empirical study on "Costs, Damages and Duration in Investor-State Arbitration"

The study examines over 400 ICSID, UNCITRAL and ICSID annulment decisions rendered in investor-state arbitrations and builds on earlier empirical studies conducted by Allen & Overy. It gives an evidence-based account of how much investment arbitral proceedings cost, how tribunals allocate those costs, the amount of damages awarded and how long proceedings last. 

Key findings of the study include:

  • Party costs have decreased over the past three years
  • Investor costs remain higher than respondent States' costs in arbitral proceedings
  • The prospects of recovering costs have improved
  • Investors are claiming and are awarded larger amounts
  • There is a steady increase in the length of investor-State proceedings
  • The choice of arbitration rules does not significantly impact tribunal costs, costs allocation and duration of investor-State proceedings

Anna Joubin-Bret, Secretary of UNCITRAL and Director of the Division on International Trade Law in the Office of Legal Affairs of the United Nations, commented:

"The value of this report to the work that UNCITRAL is currently carrying out in the context of ISDS reform is significant and cannot be overestimated. In order to carry out a systematic and thorough review of the ISDS system, it is essential that we have empirical data on which we can rely. This study highlights some significant trends in investor-State arbitrations which need to be addressed at the policy level." 

The study is co-authored by Professor Yarik Kryvoi, Director of the Investment Treaty Forum of BIICL, with Matthew Hodgson and Daniel HrĨka of Allen & Overy.

The study was formally launched during an online Investment Treaty Forum event, on 14th of May 2021 a recording of which is available here. The study is available to download here.


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