22 July 2021
The HKIAC recently published its “Average Costs and Duration Report”, which reveals some interesting statistics about the average cost and duration of arbitrations administered by the HKIAC under the HKIAC Administered Arbitration Rules (Rules).
The statistics are derived from cases in which a final award was issued between 1 November 2013 and 31 May 2021 (Relevant Period). The sample of cases taken for the purpose of compiling the statistics consisted of 186 arbitrations, 44 of which were conducted under the expedited procedure of the Rules, and 13 emergency arbitrations. Excluded from the sample, were those arbitrations that were withdrawn, settled or terminated before a final award was issued.
Overall, the statistics show the median duration of arbitration to be 13 months and the median cost of arbitration to be US$64,606. The median duration of an expedited arbitration was 8.9 months and median cost US$24,212. The median duration of an emergency arbitration was 15 days, and median cost US$55,740. Duration of arbitration, including expedited arbitration, refers to the period between the date of commencement of the arbitration and the date of the final award, inclusive of any stay periods. Duration of emergency arbitration refers to the period between the date of HKIAC’s acceptance of the application and the date of the emergency arbitrator decision, inclusive of any stay periods. Costs of arbitration, includes the arbitral tribunal’s fee and the HKIAC’s registration and administrative fees. Costs of emergency arbitration includes the emergency arbitrator’s fee and HKIAC’s administrative fee only (there being no registration fee for emergency arbitrator appointments). The full statistics can be viewed on the HKIAC website.
Stanley Lo, Deacons