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Introduction to the Chapter VI - Chamber of Arbitration of Milan Rules: A Commentary

Author(s): 
Benedetta Coppo
Page Count: 
6 pages
Media Description: 
PDF from "Chamber of Arbitration of Milan Rules: A Commentary"
Published: 
April, 2012
Jurisdictions: 
Italy,
International
Practice Areas: 
Interest and Costs,
Costs and Damages,
Expenses of Parties,
CAM,
Responsibility of Parties
Author Detail: 

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”.

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Originally from Chamber of Arbitration of Milan Rules: A Commentary

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VI – COSTS OF THE PROCEEDINGS

Introduction to the Chapter VI

Arbitration is a form of private justice that the parties pay for. It originates from a contractual agreement that binds the parties and the arbitrators. Where arbitration is administered, then a third player comes in and is tied by the agreement, that is to say the institution.1 The parties undertake an obligation by signing the arbitration agreement, whose consequent contractual commitments mainly consist in conducting the case according to the selected rules and paying the costs for the services rendered by the arbitrators and the institution. As for the institution and the arbitrators, their obligations rise respectively when accepting (i) the request for arbitration for the institution, and (ii) the appointment for the arbitrators. By so doing, the institution they undertakes to (i) administer the case, whereas the arbitrators undertake to render the award according to the rules agreed upon by the parties. As we said, the parties undertake to pay both the institution and the arbitrators for their services: the parties advance the costs of the arbitration to the institution, which fixes and collects both its own costs and those of the arbitrators, according to the rules chosen by the parties. The institution’s activity on the costs is part the services that the parties pay for, even when it acts on behalf of the arbitrators, while the contractual relationship upon which it relies remains between the parties and the arbitrators directly.

The Chamber of Arbitration of Milan (CAM) administers the costs of the proceedings on an ad valorem basis, which results from the value of the claims related to the number of arbitrators. Such a system of administration is shared by other institutions,2 while the CAM applies no hourly rate arrangement.3 The Rules aim at granting the parties with predictable costs,4 providing for an efficient economical administration of the case, and avoiding any undue pit-stop.5 At the same time, the Rules’ purpose is to give the parties access to arbitration6 at reasonable costs,7 as well as to protect the arbitrators’ right to be paid for the work done.8