§ 172.145.Costs

Title 7. Alternate Methods of Dispute Resolution · Chapter 172. Arbitration and Conciliation of International Commercial Disputes · Subchapter F. Arbitration Award · Last amended 1997 · Last verified August 29, 2026

In one sentenceSection 172.145 puts an award of arbitration costs in the tribunal’s discretion, lets it include arbitrator and expert fees, legal fees and institutional charges, and lets it specify who is entitled, who pays, how much and how.

Full Text of § 172.145

Text sizeJump to: (a) (b)

(a)Except as agreed by the parties, an award of costs of an arbitration is at the discretion of the arbitration tribunal.

(b)In making an order for costs:

(1)the arbitration tribunal may include any expenses incurred in connection with the arbitration, including:

(A)the fees and expenses of the arbitrators and expert witnesses;

(B)legal fees and expenses; and

(C)administration fees of the institution supervising the arbitration; and

(2)the tribunal may specify:

(A)the party entitled to costs;

(B)the party required to pay costs;

(C)the amount of costs or method of determining that amount; and

(D)the manner in which the costs are to be paid.

End

Plain-English Summary

Costs, and the discretion granted here is broader than anything in the domestic chapter.

An award of costs is at the tribunal’s discretion, except as agreed by the parties.

The expenses that may be included are listed. The fees and expenses of the arbitrators and expert witnesses; legal fees and expenses; and the administration fees of the institution supervising the arbitration.

Legal fees are in the list without qualification. That is a significant difference from Section 171.048(c), which allows attorney’s fees only where the agreement or the underlying law provides for them.

The difference reflects international practice, where the losing party commonly bears a share of the winner’s legal costs.

Four things may be specified: the party entitled to costs, the party required to pay, the amount or the method of determining it, and the manner of payment.

Specifying a method rather than an amount is useful where costs are still accruing when the award issues.

The list is inclusive. The tribunal may include any expenses incurred in connection with the arbitration, and the named items are examples.

Costs allocation drives settlement behaviour. A party facing the other side’s legal fees as well as its own weighs a marginal claim differently.

The section applies to post-award corrections too, through Section 172.150.

Frequently Asked Questions

Who pays the costs of an international arbitration?

As the tribunal decides, except as agreed by the parties.

Can legal fees be awarded?

Yes. Legal fees and expenses are among the costs the tribunal may include.

What can the tribunal specify?

The party entitled to costs, the party required to pay, the amount or method of determining it, and the manner of payment.

Amendment History

Added by Acts 1997, 75th Leg., ch. 165, Sec. 5.02, eff. Sept. 1, 1997.

Source & verification. Section text is reproduced verbatim from Texas Legislature Online (statutes.capitol.texas.gov). Enacted by the Texas Legislature. Current through May 14, 2026. Last verified August 29, 2026. · Official source