ICC Dispute Resolution Statistics 2023
Introduction
The International Chamber of Commerce (“ICC”) has published its report on the dispute resolution statistics for 2023 (“Report”)[1] , shedding light on the evolving landscape of international arbitration. The statistics show that arbitration is a preferred dispute resolution mechanism in several different sectors and is used in a variety of disputes[2] . The Report also shows the growth of ICC Arbitration and ICC Mediation and highlights the ICC’s status as one of the most preferred arbitral institutions.
This newsletter will only provide highlights related to arbitration.
Highlights of 2023
The ICC has been administering arbitration cases since its establishment in 1923. The Report states that the ICC Court has administered more than 28,000 cases. As of the end of 2023, the ICC Secretariat’s offices were administering 1,766 cases worldwide. The ICC has six case management offices based in Paris, New York, Sao Paulo, Singapore, Hong Kong and Abu Dhabi Global Market. These offices have administered arbitrations seated in 116 different cities in 62 countries.
The number of new cases registered in 2023 is 890, 870 of which are cases filed under the ICC Arbitration Rules. This indicates an increase from last year. According to the Report, this number is the third-best year in its history, followed by 966 in 2016 and 946 in 2020. This again is a clear indication of parties’ trust and reliance on ICC Arbitration to resolve their disputes.
The value of the new cases registered ranges between USD 2,000 to USD 6.3 billion, some of which were administered under the Expedited Procedure Provisions. This significant gap illustrates that arbitration may accommodate the needs of various cases and can be used in cases with a low value and/or less complex ones. According to the Report, in 16.1%, the value of the cases was between USD 10 million and 30 million.
Some of the statistics in the Report relate to parties, arbitral tribunals, places selected as seats, applicable law chosen by the parties, subject and size of disputes and awards, which are set out briefly below.
Review of the Report
According to the Report, the new cases registered in 2023 involved 2,389 parties (an increase from 1,959 in 2022), from 141 countries or independent territories, which includes parties from all around the world. European parties represent almost 40% of the total population, followed by 27% from the Americas, 25% from Asia and the Pacific and 8% from Africa. These numbers illustrate the increase of diversity in arbitration as there are a number of parties and arbitrators from different geographical backgrounds.
The Report notes that, similar to previous years, approximately one-third of the cases involved multiparty cases. The Report states that one case involved 32 parties, whereas 84% of the cases involved three to five parties. Türkiye, with 56 parties, is the 11th most frequent nationalities among parties. Arbitrations were seated in 116 cities where Türkiye was the place chosen by the parties 10 times. The most frequently chosen seats remain Paris and London, with both cities representing a total of %27 of all places of arbitration. Geneva follows these two cities. Compared with the London Court of International Arbitration (“LCIA”), where London was the chosen seat in 86% of the arbitrations, and the Hong Kong International Arbitration Centre (“HKIAC”) where 96.8% of the arbitrations commenced in 2023 were seated in Hong Kong, ICC demonstrates greater diversity in the choice of seat.
A review related to the constitution of the arbitral tribunals reveals that, 57% of the arbitrators were nominated by the parties, 16% by co-arbitrators and 27% by the ICC Court. According to the ICC Arbitration Rules, disputes are decided either by a sole arbitrator or a three-member tribunal. In 2023, we see that parties have agreed on the number of arbitrators with 66% of this choice favoring of three-member tribunals. Similarly, LCIA arbitrations also favored three-member tribunals, with 56% of cases involving three-member tribunals compared to 44% of the cases involving sole arbitrators.
According to the Report, there were 46 challenges to arbitrators in 31 cases. The ICC court rejected most of these challenges, as only eight were accepted. As to the gender of arbitrators, there was an increase in the number of women arbitrators compared to the previous year. Specifically, women comprised 29.7% of all arbitrator confirmations and appointments, up from 28.6% in 2022. Furthermore, when the ICC directly appointed arbitrators, 41% of those appointments were women.
Of all women arbitrators confirmed or appointed in 2023, 47% were nominated by the parties, 37% were appointed by the ICC Court, and the co-arbitrators nominated 16%.
When it comes to gender diversity, the LCIA plays a huge role. According to the LCIA 2023 statistics, in 2023, 48% of court appointments were women, a notable increase from 45% in 2022. Similarly, 39% of co-arbitrator appointments were women, up from 23% the previous year. However, party appointments of women remain lower, at 21% (up from 19%). To further enhance gender diversity, increased input from parties and co-arbitrators is crucial, while balancing the need to avoid appointing the same arbitrators repeatedly[3]. In order to avoid any potential conflicts of interest and ensure independence and impartiality of arbitrators, all arbitral institutions strive to minimize repeated appointments.
Albeit the Report states that more than 20 sectors have been represented in ICC arbitrations, the top five industries are construction and engineering, energy, industrial equipment and services, transportation and health, pharmaceuticals and cosmetics. The construction and engineering sector seems to be the most prominent sector. This is likely due to the complex nature of the disputes in this field, which often involve intricate legal and technical issues such as delay analysis, cost claims, variations, contract interpretation which necessitate expertise. A similar increase in construction disputes is seen in cases registered with the HKIAC[4] . According to HKIAC statistics, 17.1% of the cases registered concern construction disputes.
Conclusion
In conclusion, 2023 has been a busy year for the ICC and the arbitration world. The number of cases registered clearly indicates the parties’ choice of arbitration and ICC as a preferred institution. The Report reaffirms the importance of arbitration as a valuable tool for resolving high-value complex disputes and disputes with a lower value. The increase in the Expedited Procedures Provisions indicates the growing demand and need for efficient and cost-effective dispute resolution.
The Report serves as a good tool as it provides valuable insights into the current trends in international arbitration.
- For the full text of the report: https://iccwbo.org/news-publications/news/icc-dispute-resolution-statistics-2023/, Access Date: 01.12.2024
- The increase in arbitration cases can be seen in several statistical reports, including but not limited to the those published by the ICC and the London Court of International Arbitration, the International Centre for Settlement of Investment Disputes and the Hong Kong International Arbitration Centre. All reports show an increase in new registrations and caseload.
- Please see https://www.lcia.org/News/lcia-news-annual-report-on-2023-lcia-court-and-african-users-c.aspx Access Date: 01.12.2024
- Please see https://www.hkiac.org/about-us/statistics, Access Date: 01.12.2024
All rights of this article are reserved. This article may not be used, reproduced, copied, published, distributed, or otherwise disseminated without quotation or Erdem & Erdem Law Firm's written consent. Any content created without citing the resource or Erdem & Erdem Law Firm’s written consent is regularly tracked, and legal action will be taken in case of violation.
Other Contents
Syndicated loans undoubtedly hold a significant position among global financing models. In 2023 alone, 3,655 syndicated loans were provided to companies in the US, with their total value reaching USD 2.4 trillion...
Preliminary attachment refers to the temporary seizure of a debtor's assets to secure a creditor's claim. While it serves as a vital instrument for safeguarding the rights of creditors, it is subject to specific and stringent conditions under Turkish law to prevent any potential misuse...
One of the most important reasons for parties to choose arbitration is the opportunity to freely choose their arbitrators. This freedom granted to the parties also distinguishes arbitration from proceedings before state courts, where the parties are deprived of the power to determine the judges who will conduct the...
The 6th Civil Chamber of the Court of Cassation ruled on October 12, 2022, that national courts have jurisdiction over objections to provisional measures in international arbitration disputes...
The declaration of intent to resolve disputes through arbitration is the fundamental constituent element of an arbitration agreement. To speak of a valid arbitration agreement, the parties' intention to arbitrate must emerge in a way that leaves no room for dispute...
In the wake of the evolving dynamics of commercial transactions, the Netherlands Arbitration Institute Foundation (NAI) announced new arbitration rules . 2024 NAI Arbitration Rules are in force as of 1 March 2024 and will be applicable on proceedings filed on or after this date...
With the global shift to online activities, domain names play a crucial role in identifying businesses. It is more common than ever for a domain name to be registered that is confusingly similar to a trademark or service mark...
The ICC Commission on Arbitration and ADR (“Commission”) published a new guide and report with the aim to increase awareness on alternative dispute resolution (“ADR”) mechanisms to prevent disputes and strengthen the relationship between all stakeholders.The Guide on Effective Conflict Management...
Mergers and Acquisitions (“M&A”) are restructuring of companies or assets through various types of financial transactions, such as mergers, acquisitions, purchase of assets, or management acquisitions. This Newsletter article covers M&A disputes being solved before arbitral tribunals.
In the context of arbitration practice, the principle of revision au fond means that the courts can not examine the merits of a dispute when reviewing an arbitral award. This principle is most commonly encountered in set aside and enforcement proceedings. An arbitral award is evidence of the parties’ willingness...
Under Turkish law, parties may agree on the settlement of disputes that have arisen or may arise, regarding the rights that they can freely dispose of, by arbitration. However, disputes which are not subject to the will of parties, such as the disputes relating to in rem rights of immovables, bankruptcy law...
On 4 September 2020, a research project “Does a Right to a Physical Hearing Exist in International Arbitration?” was launched by an International Council for Commercial Arbitration (“ICCA”) taskforce. Due to the Covid-19 pandemic, many arbitration hearings were held online. Many institutional rules...
Dubai International Arbitration Center amended its Arbitration Rules on 25 February 2022. The 2022 Arbitration Rules were published on 2 March 2022 and came into effect on 21 March 2022. The Rules will be applied to arbitrations that are filed after 21 March 2022; unless parties agree otherwise...
In the aftermath of the Achmea decision, controversies on intra-EU arbitrations continue. Most recently, the Paris Court of Appeal has annulled two arbitral awards rendered against Poland. Meanwhile, the Higher Regional Court of Berlin has refused to declare that an Irish investor’s ICSID claim...
Under Turkish law, the legal remedy that can be applied against arbitral awards is an annulment action. Law on International Arbitration No. 4686 (“IAL”) finds its application area in arbitration proceedings where Turkey is the place of arbitration...
It is well known that following a decision of the Court of Justice of the European Union, problems arose related to arbitration of intra-EU disputes, and particularly arbitration under the Energy Charter Treaty...
Arbitration in corporate law contains controversial elements in many respects, especially the issue of arbitrability. Even in legal systems where these disputes are considered to be arbitrable, uncertainties remain on whether an arbitration clause can be included in the articles of...
Arbitration has benifited from a great increase in the use of technology which has directly effected the conduct of proceedings. More particularly, with digitalization, the way that we conduct arbitration proceedings has been changed to reflect the current needs of parties, with an aim of increasing time...