(a) Unless otherwise agreed by the parties, the costs of an arbitration shall be at the discretion of the arbitral tribunal.
§ 1297.318.Costs
Title 9.3. Arbitration and Conciliation of International Commercial Disputes · Chapter 6. Making of Arbitral Award and Termination of Proceedings · Article 4. Form and Content of Arbitral Award · Enacted 1988 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1297.318 puts the costs of an arbitration in the tribunal's discretion unless the parties agreed otherwise, lets the tribunal include arbitrator, expert, legal, and administrative fees and expenses, and lets it specify who is entitled to costs, who must pay, the amount, and how payment is made.
Full Text of § 1297.318
(b) In making an order for costs, the arbitral tribunal may include as costs any of the following:
(1) The fees and expenses of the arbitrators and expert witnesses.
(2) Legal fees and expenses.
(3) Any administration fees of the institution supervising the arbitration, if any.
(4) Any other expenses incurred in connection with the arbitral proceedings.
(c) In making an order for costs, the arbitral tribunal may specify any of the following:
(1) The party entitled to costs.
(2) The party who shall pay the costs.
(3) The amount of costs or method of determining that amount.
(4) The manner in which the costs shall be paid.
Plain-English Summary
Deciding the merits of a dispute is only part of an award's job; sorting out who pays for the arbitration itself is the other. This section gives the tribunal broad discretion over that question. Unless otherwise agreed by the parties, the costs of the arbitration are at the discretion of the arbitral tribunal.
Subdivision (b) spells out what can count as costs when the tribunal makes that order: the fees and expenses of the arbitrators and expert witnesses, legal fees and expenses, any administration fees charged by an institution supervising the arbitration, and any other expenses tied to the proceedings. Subdivision (c) then gives the tribunal the tools to make the order concrete -- specifying which party is entitled to costs, which party must pay them, the amount or the method for calculating that amount, and the manner in which the costs are to be paid. Together, the provisions let a single cost order resolve the full financial tail of the arbitration, not just who owed what on the merits.
Frequently Asked Questions
Who decides how the costs of an international arbitration are allocated?
The arbitral tribunal, in its discretion, unless the parties have agreed otherwise.
What can the tribunal count as costs in its order?
Fees and expenses of the arbitrators and expert witnesses, legal fees and expenses, any administration fees of a supervising institution, and any other expenses incurred in connection with the proceedings.
Can the tribunal specify exactly how much a party owes and how it must be paid?
Yes. The tribunal may specify the party entitled to costs, the party who must pay, the amount or method of determining it, and the manner of payment.
Can the parties take this discretion away from the tribunal?
Yes. Section 1297.318 applies unless otherwise agreed by the parties.
Amendment History
Added by Stats. 1988, Ch. 23, Sec. 1. Effective March 7, 1988.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 29, 2026.
· Official source
Also known as: costs of arbitration tribunal discretionallocating arbitrator fees legal expenses award