Fees & expenses - Early Neutral Evaluation

The conditions and the fees and expenses for NZDRC’s Early Neutral Evaluation services may alter from time to time, however the conditions and the fees in relation to any particular services shall be those that appear on the NZDRC’s website at the time the application for Early Neutral Evaluation is made.

 

Application / Nomination Fee

 

NZDRC does not charge an application or nomination fee.

 

Early Neutral Evaluation Fees

 

NZDRC provides a fully administered, Early Neutral Evaluation service for disputes of all values.
 

A Notice of Acceptance of Appointment as Evaluator will not be served on the parties to the Early Neutral Evaluation by NZDRC until the parties have paid (in clear funds) into the trust account of NZDRC a deposit as security for the Evaluator’s fees and expenses in accordance with the following schedule:

 

Code

Amount of claim

Security payment required

ENE1 ≤ $ 99,999.99 $10,000.00
ENE2 $100,000.00 ≤ $199,999.99 $15,000.00
ENE3 $200,000.00 ≤ $999,999.99 $20,000.00
ENE4 ≥ $1M $25,000.00

 

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

 

In the event that the Evaluator’s fees and expenses prove to be less than the amount held by the NZDRC as security, NZDRC will provide the Evaluator’s Evaluation to the parties to the Early Neutral Evaluation as soon as practicable after the Evaluator has made his or her Evaluation. NZDRC will disburse the balance of the monies held as security to the parties in the proportions in which the security was originally paid by the parties unless the parties agree otherwise and instruct NZDRC accordingly in writing within two (2) working days of receipt of the Evaluation.

 

In the event that the Evaluator’s fees and expenses prove to be greater than the amount held as security, the parties will be advised of the Evaluator’s actual fees and expenses by NZDRC and the parties will be requested to pay the balance in order to uplift the Evaluation. When the balance is paid in full, a copy of the Evaluation will be provided to each of the parties to the Early Neutral Evaluation by NZDRC.

 

If an Evaluator becomes unable to perform the functions of that office, the Evaluator shall not be entitled to be paid any fees or expenses in connection with the Evaluation and any amount paid as security for the Evaluator’s fees and expenses will be applied by NZDRC to meeting the fees and expenses of the substitute Evaluator.

 

When is Payment Required?

 

Payment of security for the Evaluator’s fees and expenses is required to be made at the time the signed Agreement for Early Neutral Evaluation is filed with NZDRC. No administrative or procedural steps will be taken by NZDRC until payment of the required security is made in full and the funds are clear.

 

In the event that the Evaluator’s fees and expenses are greater than the amount held as security, the parties must pay the balance of the Evaluator’s fees and expenses within two (2) 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 Early Neutral Evaluation fees and expenses. However, it is most common, and indeed desirable, that the parties contribute equally to the cost of the Early Neutral Evaluation process thus confirming that the Evaluator is employed for the benefit of all parties and ensuring the 'neutral' status of the Evaluator.

 

Notwithstanding any agreement as between the parties, under the Early Neutral Evaluation Agreement the parties are jointly and severally liable for the fees and expenses of the Early Neutral Evaluation together with any additional costs howsoever incurred by NZDRC in recovering any overdue monies on a full indemnity basis.

 

If the dispute between the parties is settled, or the request for Early Neutral Evaluation is withdrawn or terminated by the parties for any reason whatsoever before the Evaluation is made, the Evaluator is entitled to be paid all fees and expenses incurred by the Evaluator in the execution of the duties of the Early Neutral Evaluation up to and including, as the case may be, the date on which the request for Early Neutral Evaluation was withdrawn or terminated, or the date on which the Evaluator was notified that the dispute had been resolved.

 

Methods of Payment

 

Payment of all NZDRC fees and Early Neutral Evaluation expenses may be made by cheque, direct credit, or by credit card (Visa and MasterCard only). Please note that if paying by credit card there is a merchant transaction fee of 2.75% payable in addition to any invoiced amount.

 

Cancellation Fees

 

In any case where a party notifies the Evaluator in writing that a scheduled Evaluation Conference is to be vacated, whether or not the dispute between the parties has been settled, or the Evaluation Conference is adjourned by agreement, or the application for Early Neutral Evaluation is withdrawn or terminated by the parties for any reason whatsoever, and the notice is received by the Evaluator during ordinary business hours three (3) working days or less from and including the date of the scheduled Evaluation Conference, NZDRC will charge a cancellation fee in accordance with the following schedule:

 

Code

Amount of claim

Cancellation fee per day or part day

ENE1 $50,000.00 ≤ $99,999.99 $3,000.00
ENE2 $100,000.00 ≤ $199,999.99 $4,000.00
ENE3 $200,000.00 ≤ $999,999.99 $4,500.00
ENE4 ≥ $1M $5,000.00

 

In the event that the dispute is settled or the agreement for Early Neutral Evaluation is withdrawn by the parties, the Evaluator’s fees and expenses including any entitlement to cancellation fees will be deducted from the amount paid as security for the Evaluator’s fees and expenses. The balance of the security monies, if any, will be refunded to the parties in the proportions in which the security was originally paid by the parties unless the parties agree otherwise and instruct NZDRC accordingly in writing 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 application for Early Neutral Evaluation is withdrawn or terminated, or the dispute between the parties is resolved after receipt by NZDRC of an application to appoint an Evaluator and before the provision of an Evaluation, 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 Early Neutral Evaluation up to and including the date on which the application for Early Neutral Evaluation was withdrawn or terminated or NZDRC was notified that the dispute had been resolved.

 

If you have any questions regarding NZDRC fees or when/how they are payable, please contact us on (09) 486 7153 or at registrar@nzdrc.co.nz

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