International proceedings are dispute resolution outside the Dutch national borders that include lawyers, experts, court costs, translations, travel, and enforcement costs. At Musch Legal, entrepreneurs are often shocked by the actual costs. A medium-sized arbitration can easily cost between 300,000 and 800,000 euros. A realistic cost estimate in advance is essential to make sensible dispute resolution choices — settling can often be commercially smarter than winning on the final stage.
What is at stake legally? (What do international litigation costs consist of?)
Litigation costs include lawyers (hourly rate 200-800 euros), arbitrators (300,000 euros is normal in large cases), institute costs (ICC and LCIA scale-related), experts (30,000-500,000 euros), translations, travel, enforcement costs, and court costs orders. Under Brussels I-bis, legal costs of the winning party can be recovered, but only partially: in the Netherlands, the liquidation rate applies, which is far below actual costs. In England, the principle of "costs follow the event" applies more broadly.
Claim
Estimated costs
Completion time
Winner recovery
100,000-500,000 euros
100,000-300,000 euros
12-18 months
60-80% (arbitrage)
1-5 million euros
400,000-1,200,000 euros
18-24 months
60-80% (arbitrage)
5-25 million euros
1,000,000-3,000,000 euros
24-36 months
50-70% (arbitrage)
>25 million euros
>3,000,000 euros
30-48 months
Highly variable
Recovery
Estimated costs
Completion time
Recovery winner
100,000-500,000 euros
100,000-300,000 euros
12-18 months
60-80% (arbitrage)
1-5 million euros
400,000-1,200,000 euros
18-24 months
60-80% (arbitrage)
5-25 million euros
1,000,000-3,000,000 euros
24-36 months
50-70% (arbitration)
>25 million euros
>3,000,000 euros
30-48 months
Highly variable
What steps are you taking? (How do you budget wisely?)
Conduct a cost-benefit analysis before every proceeding. Ask your lawyer for a phased cost estimate per stage of the proceedings. Investigate third-party funding for claims starting from 500,000 euros: specialized funders cover litigation costs in exchange for a share of the proceeds. Request security for costs from dubious counterparties. Evaluate fast-track proceedings. For large claims: build in cost caps and milestone fees with your lawyer.
What risks and costs do you face? (What is the worst-case scenario?)
An average international arbitration under the ICC for a claim of 1 to 5 million euros costs 400,000 to 1.2 million euros in total costs. For claims above 10 million euros, costs can exceed 2 million euros. State proceedings outside the EU often require multiple local lawyers, translations, and travel expenses. In the event of a loss, costs incurred by the opposing party are added to this. Cash flow garnishment during the proceedings can be an operational impediment.
How did a client handle this? (How did we save 700,000 euros?)
Musch Legal advised a Dutch SME with a claim of 1.8 million euros against a Spanish customer. Estimated litigation costs in Spain: 350,000 euros, duration 4 years. We incorporated ICC arbitration into a contract renewal round. Regarding the actual dispute several years later: ICC Fast Track in The Hague, costs €140,000, duration 9 months. Client won €1.6 million plus cost order. Net result over €1.3 million versus estimated €600,000 net under the old route.
What is your first action? (What are you doing immediately?)
For every significant claim, request a written cost estimate per phase. Compare at least two dispute resolution routes. Assess third-party funding for large claims. Negotiate with your lawyer regarding caps, retainers, or success fees. For ongoing contracts: review dispute clauses for cost impact. For very large cases: ask Musch Legal for a formal Litigation Risk Memorandum.