Fees & expenses - general arbitration

Application / Nomination Fee

 

NZDRC does not charge an application fee for the nomination of Arbitral Tribunals for domestic Arbitrations.

 

Security for Arbitral Tribunal’s Fees and Expenses – General Arbitration

 

For General Arbitrations a Notice of Acceptance will not be served on the Parties to the Arbitration by NZDRC until the Parties have paid (in clear funds) into the trust account of NZDRC a deposit as security for the Arbitral Tribunal’s Fees and Expenses in accordance with the following schedules:

 

EXPEDITED COMMERCIAL ARBITRATION ON THE DOCUMENTS - 45 DAY (ECA45)

 

AMOUNT OF CLAIM

SECURITY PAYMENT REQUIRED

≤$24,999.99 $  6,000.00
$25,000.00   ≤$49,999.99 $  8,000.00
$50,000.00   ≤$99,999.99 $10,000.00
$100,000.00 ≤$499,999.99 $15,000.00
$500,000.00 ≤$999,999.99 $17,500.00
≥$1,000,000.00 $20,000.00

EXPEDITED COMMERCIAL ARBITRATION - 60 DAY (ECA60)
 

AMOUNT OF CLAIM

SECURITY PAYMENT REQUIRED

≤$24,999.99 $  7,500.00
$25,000.00   ≤$49,999.99 $10,000.00
$50,000.00   ≤$99,999.99 $15,000.00
$100,000.00 ≤$499,999.99 $20,000.00
$500,000.00 ≤$999,999.99 $25,000.00
≥$1,000,000.00 $30,000.00

EXPEDITED COMMERCIAL ARBITRATION - 90 DAY (ECA90)
 

AMOUNT OF CLAIM

SECURITY PAYMENT REQUIRED

≤$24,999.99 $10,000.00
$25,000.00   ≤$49,999.99 $15,000.00
$50,000.00   ≤$99,999.99 $20,000.00
$100,000.00 ≤$499,999.99 $25,000.00
$500,000.00 ≤$999,999.99 $30,000.00
≥$1,000,000.00 $35,000.00

ADMINISTERED DOMESTIC COMMERCIAL ARBITRATION (DCA)
 

AMOUNT OF CLAIM

SECURITY PAYMENT REQUIRED

≤$24,999.99 $10,000.00
$25,000.00   ≤$49,999.99 $15,000.00
$50,000.00   ≤$99,999.99 $20,000.00
$100,000.00 ≤$499,999.99 $25,000.00
$500,000.00 ≤$999,999.99 $30,000.00
≥$1,000,000.00 $35,000.00

BESPOKE COMMERCIAL ARBITRATION (BCA)
 

The security for the Arbitrator’s fees and expenses required to be paid before a Notice of Acceptance will be served on the parties in respect of a Bespoke Arbitration Agreement is fixed by arrangement with NZDRC at the time of drafting the Arbitration Agreement.

 

Please note that any amount paid as security for the Arbitrator’s fees and expenses is a nominal amount only and is not, and shall not be considered, an estimate of the cost of the arbitration which shall be calculated according to the time engaged on the duties of the arbitration by the Arbitrator together with any expenses incurred by the Arbitrator in the execution of those duties.

 

Security-Not an Estimate-Supplementary Advances-Disbursement

 

Please note that for all General Claims, any amount paid as security for the Arbitral Tribunal's Fees and Expenses is merely an initial advance against the Arbitral Tribunal's Fees and Expenses. The initial advance is a nominal amount only and is not, and shall not be considered to be, an estimate of the cost of the Arbitration which shall be calculated according to the time engaged on the duties of the Arbitration by the Arbitral Tribunal, together with any Expenses incurred by the Arbitral Tribunal in the execution of those duties.

 

During the course of the arbitral proceedings, the Arbitral Tribunal may from time to time request one or several further supplementary, interim and/or final advances and deposits from the Parties towards the costs or Expenses of the Arbitration, incurred or to be incurred, on behalf of, or for the benefit of the Parties. All such advances are to be paid into the trust account of NZDRC.

 

The Registrar may from time to time on instruction of the Arbitral Tribunal, apply the advances and deposits paid by the Parties as security for the Arbitral Tribunal's Fees and Expenses towards interim payments to the Arbitral Tribunal, and render an updated statement of accounting to the Parties.

 

Any interest which may accrue on such deposits shall be retained by NZDRC as it's own property.

 

If any required deposit or advance is not paid in full within ten (10) working days after receipt of the request, the Registrar shall so inform the Parties in order that one or another of them may make the required payment. If such payment is not made within a further five (5) working days, the Arbitral Tribunal may order the suspension or termination of the arbitral proceedings.

 

If the Arbitral Tribunal’s Fees and Expenses are less than the amount held by NZDRC as security, NZDRC will provide the Arbitral Tribunal’s Award to the Parties to the Arbitration as soon as practicable after the Arbitral Tribunal has made its Award.

 

In the event that the Arbitral Tribunal’s Fees and Expenses are greater than the amount held as security, the Parties will be advised of the Arbitral Tribunal’s actual Fees and Expenses by NZDRC, and the Parties will be requested to pay the balance in order to uplift the Award. When the balance is paid in full, a copy of the Award will be provided to each of the Parties to the Arbitration by NZDRC.

 

As soon as practicable after the Final Award has been provided to the Parties, NZDRC will render a final statement of accounting to the Parties of deposits and advances received and payments made to the Arbitral Tribunal and NZDRC will reimburse any unexpended balance of the security monies to the Parties in the manner determined by the Arbitral Tribunal.

 

If an arbitrator becomes in fact or in law, or by reason of infirmity, unable to perform the functions of that office, or for any other reason the arbitrator withdraws from office, or the Parties agree to the revocation of that arbitrator’s mandate, or NZDRC removes the arbitrator from office in response to a request from a Party on the ground that the arbitrator failed to fulfill the arbitrator’s functions in accordance with these Rules and/or within the prescribed time limits, the arbitrator shall not be entitled to be paid any Fees or Expenses in connection with the Arbitration and any amount paid as security for the arbitrator’s Fees and Expenses will be applied by NZDRC to meeting the Fees and Expenses of the substitute arbitrator.

 

When is Payment required?

 

Payment of the prescribed security for the Arbitral Tribunal’s Fees and Expenses is required to be made at the time an Application for Arbitration is filed with NZDRC. No administrative or procedural steps will be taken by NZDRC until payment of the prescribed security is made in full and the funds are clear.

 

In the event that the Arbitral Tribunal’s Fees and Expenses are greater than the amount held as security, the Parties must pay the balance within three (3) working days of receipt of notification by NZDRC of such additional Fees and Expenses.

 

Liability for Payment

 

The Parties are free to make any arrangements as between them for payment of the Arbitration Fees and Expenses.

 

However, notwithstanding any such agreement as between the Parties, the Parties shall at all times be jointly and severally liable for the Arbitral Tribunal's Fees and Expenses, including any Fees and Expenses incurred by the Arbitral Tribunal, whether or not it makes an Award additional Award fixing the costs and expenses of the Arbitration, together with any additional costs howsoever incurred by the Arbitral Tribunal or NZDRC in recovering any overdue monies, on a full indemnity basis.

 

Methods of Payment

 

The fixed fee for LVAC’s or the specified security amount for any General Arbitration may be made by bank cheque, direct credit or credit card online. Please note that if paying by credit card there is a merchant transaction fee of 2.75% payable in addition to the fixed fee for LVAC’s or the specified security amount for any General Arbitration or for any additional invoiced amount.

Payment of all additional NZDRC Fees and Arbitration Expenses may be made by bank cheque or direct credit only.

 

Cancellation Fees

 

In any case where a Party notifies the Arbitral Tribunal that a scheduled conference, inspection, or hearing date is to be vacated, whether or not the dispute between the Parties has been settled, or the conference, inspection, or hearing is adjourned by agreement, or the application for Arbitration is withdrawn or terminated by the Parties for any reason whatsoever, and the notice is received by the Arbitral Tribunal during ordinary business hours between ten (10) and six (6) working days from and including the date of the scheduled conference, inspection, or hearing, the Arbitral Tribunal may charge a cancellation fee in the amount of 50% of the Arbitral Tribunal’s daily charges for the entire period of time set aside for the same.

 

If such notice is received five (5) working days or less from and including the date of the scheduled conference, inspection, or hearing, the Arbitral Tribaunl may charge a cancellation fee in the amount of 75% of the Arbitral Tribunal’s daily charges for the entire period of time set aside for the same.

 

In the event that the dispute is settled or the agreement to arbitrate is withdrawn by the Parties, the Arbitral Tribunal’s Fees and Expenses including any entitlement to cancellation Fees will be deducted from the amount paid as security for the Arbitral Tribunal’s Fees and Expenses. The balance of the security monies will be refunded to the parties in the proportions in which the security payment has been made unless the Parties agree otherwise and instruct NZDRC accordingly within two (2) working days of notice of settlement or withdrawal.

 

Administration Fee payable on Withdrawal or Settlement of Claim

 

In any case where an Arbitration claim is withdrawn or terminated, or the dispute between the Parties is resolved after receipt by NZDRC of an application for Arbitration and before the provision of an Award, NZDRC will charge a Fee being not less than $750.00 in respect of the Fees and Expenses incurred in relation to the administration of the Arbitration up to and including the date on which the Arbitration claim was withdrawn or terminated or NZDRC was notified that the dispute had been resolved.

 

To find out more about our Arbitration service, please contact NZDRC on (09) 486 7153 or at registrar@nzdrc.co.nz

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