Trends in International Arbitration: A review of the 2023 casework statistics for the LCIA and ICC

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25.09.2024

A look at trends and key numbers arising from The London Court of International Arbitration Casework Report for 2023, and The International Chamber of Commerce preliminary arbitration and ADR statistics for 2023.

This article looks at trends and key numbers arising from:

The data shows that the ICC remains the leading arbitral institution by volume of cases. The LCIA has also seen an increase in referrals from 2022 to 2023, reflecting a positive rebound in case numbers following the impact of the Covid-19 pandemic and geopolitical upheavals.

Both institutions have noted an increasing reliance on emergency and expedited procedures in 2023, with the LCIA also identifying a significant rise in disputes relating to so-called “younger” agreements i.e. contracts concluded within two years prior to the year of referral of the dispute to the LCIA.

The LCIA Report at a glance:

Caseload

  • The Covid-19 pandemic caused an initial unprecedented spike of arbitration referrals to the LCIA in 2020, followed by a subsequent dip in 2021 and 2022. The LCIA Report for 2023 shows a return to the normal trajectory of a steady growth in LCIA arbitration referrals.
  • A total of 377 arbitration referrals were received by the LCIA in 2023, including 327 arbitrations pursuant to the LCIA Rules, marking a 13% increase from 2022.
  • The 2023 arbitrations arose from the sale of goods (31%), the provision of services (17%), shareholder/share purchase/joint ventures (15%), and loan and other loan facility agreements (10%), which was broadly consistent with the 2022 caseload.
  • Approximately 98% of LCIA cases involve one or more international parties. Western Europe remains the largest geographic grouping of parties (26%), followed by Asia (8%) and Africa (8%). The percentage of parties from the UAE and Saudi Arabia is 4.8% and 4.2% respectively. Only 17% involve one or more UK party.
  • The percentage of recently concluded agreements, specifically those dated two years prior to the year of referral of the dispute to the LCIA, increased significantly in 2023 (48%). The majority of these ‘younger agreements’ involved the sale of goods, which the LCIA attributed to various factors such as rising energy prices, sector volatility and global conflicts, including the war in Ukraine.
  • Claims over 20 million USD increased from 19% in 2022 to 29% in 2023, while claims under 5 million USD now make up just over half of cases where monetary relief is sought.
  • London continues to be the preferred location for LCIA arbitrations, with 86% of cases seated there. Regarding governing law, the law of England and Wales is still the preferred choice, with 83% of parties selecting it in 2023.

Multi-party arbitrations and early determination

  • The LCIA Report evidenced the growing popularity of consolidation and of the early determination tools offered by the LCIA following the updating of the LCIA Rules in 2020. A total of 48 applications for consolidation were made by parties in LCIA arbitrations (84% of these were granted) and there were 24 applications for early determination, which is a 60% increase from such applications received in 2022.

Interim Relief

  • In 2023, parties made 58 applications for interim and conservatory measures, across 43 arbitrations. Security for costs was the most common interim relief sought. Tribunals granted the requested relief in 14 instances and rejected the application in 21 instances, with 5 applications being partially granted, and 18 were superseded or are pending.

Expedited formation of tribunals and emergency arbitrator appointments

  • The LCIA Report shows an increase in applications for expedited formation of the tribunal (15) and the appointment of an emergency arbitrator (6) in 2023, as compared to ten and three respectively, in 2022. Twelve of the 15 applications for expedited formation were rejected and three were granted. Five of the requests for an emergency arbitrator were rejected and one was granted.

The Preliminary ICC Statistics at a glance:

Caseload

  • The ICC registered 890 new arbitrations in 2023, the third highest number in its history. Parties from 141 countries and independent territories participated in arbitrations filed in 2023, as compared with 134 in 2022 and 143 in 2021.
  • A noted increase was seen in the number of parties from Central and Eastern Europe (277 parties, up from 188 in 2022), North America (308, up from 207 in 2022), and the Middle East (288, up from 198 in 2022).
  • France, the United Kingdom, Switzerland, the United States and Brazil remained the top five seats of arbitration. In total, arbitrations were seated in 116 cities across 63 countries. In 2023, the five most frequently selected cities remained London, Paris, Geneva, New York and Singapore.

Expedited arbitrations

  • The ICC’s Expedited Procedure Provisions (EPP) saw a record 189 new cases in 2023, bringing the total to 713 cases administered under EPP since its establishment in 2017.

Emergency arbitrator appointments

  • Emergency arbitration also played a critical role in 2023, with 28 applications filed by parties from 33 jurisdictions. Over 40% of these applications involved multiple parties, 25% involved states and state-owned entities, and another 25% involved parties of the same nationality, underscoring the importance of emergency arbitration in providing access to dispute resolution when it is most needed.

The full 2023 ICC Dispute Resolution statistics report is due to be released later this year.

Source: https://www.lexology.com/library/detail.aspx?g=28789701-f65e-4628-a10e-81373ad8a90e&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Body+-+General+section&utm_campaign=Lexology+subscriber+daily+feed&utm_content=Lexology+Daily+Newsfeed+2024-08-13&utm_term=