Advance and Final Deposits - Article 37 - Chamber of Arbitration of Milan Rules: A Commentary
BENEDETTA COPPO is Head-officer in charge of the Arbitration Department of the Milan Chamber of Arbitration. She has been administering more than 150 arbitrations, both domestic and international, in English, French and Italian. She coordinated and took part in the 2010 revision of the Rules of the CAM on behalf of the Secretariat. Benedetta pens articles and speaks at conferences and training courses on institutional arbitration, in Italy and abroad. She has been Italy country-reporter for “ITA Arbitration Report” since 2006, and has led the four editions of the “Milan pre-Moot”, preparatory to the “Willem C. Vis Arbitration Moot”.
Originally from Chamber of Arbitration of Milan Rules: A Commentary
ART. 37 – ADVANCE AND FINAL DEPOSITS
1. When the request for arbitration and the statement of defence are filed, the Secretariat shall direct the parties to make an advance on the costs of the arbitration, setting a time limit for the parties to make it.
2. The Secretariat may direct the parties to make further advances in relation to work done or to any change of the amount in dispute, setting a time limit for these advances.
3. The Secretariat shall direct the balance of the costs of the proceedings based on the final determination of the Arbitral Council and before the award is filed, setting a time limit for the payment of the balance.
4. The payments contemplated by paragraphs 1, 2 and 3 shall be made by all the parties in equal shares where the Secretariat determines a single value for the dispute, totalling all the claims filed by the parties. Where the Secretariat determines different values of the dispute in relation to the claims of the parties, it shall direct each party to pay the full amount of the advance relating to its claim, as determined in accordance with paragraphs 1, 2 and 3.
5. For the purpose of these payments, the Secretariat may consider several parties as one, taking into account the manner in which the Arbitral Tribunal is constituted or the mutual interests of the parties.
6. If a party so requests, and gives reasons for this request, the Secretariat may accept a bank or insurance guarantee for the amounts set at paragraphs 1, 2 and 3, setting terms and conditions.
1. Introductory remarks
1.1. Under the Milan Rules, the parties advance the costs of the arbitration. Article 37 makes reference to the costs of the case, which are defined in Article 36.4 and are composed of the fees of the Chamber, the Arbitral Tribunal, its Expert, as well as their expenses. Para. 1, 2 and 3 of Article 37 regulate when the costs are paid. Para. 4 and 5 then define who makes the deposits. Finally, Article 37.6 rules on the means by which the deposits can be made. Any lack of payment leads to the application of Article 38.
1. Introductory remarks
2. When is the advance paid?
3. Who pays the costs?
4. How are the costs paid