Arbitrating Small Value Claims in Investment Arbitration

Tuesday 25 October 2022

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This Report of the IBA Investment Arbitration Subcommittee examines the mechanisms and strategies available to the parties to calibrate the time, effort, and financial resources mobilised and invested to arbitrate small value investment claims in a manner that is commensurate with the sums at stake.

Small value claims in investment arbitration are not necessarily simpler, smaller or less complex than large value claims. But the more modest sums at stake militate in favour of a proportioned and tempered approach to resolving such cases. Pursuing claims in a cost-effective and efficient manner is an even greater imperative when small value claims are involved. To be clear, this Report does not take a principled view on whether small value claims are desirable or should be encouraged, but rather investigates the procedural tools available to facilitate a cost-effective resolution of such claims. Most, if not all, of these tools are available for all claims, irrespective of the amounts at stake, but they seem particularly relevant and potentially critical for small value claims.

The  Report saw the light under the leadership of the prior co-chairs of the Subcommittee, Noiana Marigo (Freshfields) and Patrick Pearsall (Allen & Overy), who entrusted the current co-chairs, Maxi Scherer (Wilmer Hale) and Caline Mouawad (Chaffetz Lindsey) with a robust draft from the working group,  identified in Annex 1 with an asterisk.

The Report was finalised with the invaluable further input from  the working group, the Subcommittee membership at large, and the Arbitration Committee officers.

The Subcommittee also would like to acknowledge the hard work and dedicated efforts of the following  individuals who helped with the preparation of this Report: (1) Hinda Rabkin (Freshfields); (2) Brianna  Gorence (Freshfields) (3) Cem Kalelioglu (Wilmer Hale); and (4) David Hu (Wilmer Hale).

Download the report here