Global Vantage: What Happens When A Party Refuses To Pay Its Share Of The Arbitration Fee?

With the Coronavirus pandemic only serving to exacerbate pre-existing tensions at all levels of the supply chain, the number of construction disputes is expected to rise dramatically in the coming months.

For parties with valid arbitration agreements, the first-step in resolving any such disputes will be to refer the matter to an arbitration panel. However, with Covid-19 leaving many of the world's largest economies in recession, we are beginning to see some cash-strapped businesses try to resist their obligation to pay a proportion of the arbitration fee. Consequently, innocent parties could find their dispute suspended or even withdrawn by the Arbitration Tribunal.

The level of detail that is contained within an arbitration clause varies greatly from contract to contract. However, clauses should generally make reference to the arbitration institution that the parties have chosen to resolve their disputes. As such, it will be necessary to consult the rules of