What is Expert Determination?
The independent person has expertise relevant to the matters in dispute between the parties and is engaged to decide the disputed matters as an expert and not as an arbitrator.
The process is controlled by the parties themselves, who agree beforehand whether or not they will be bound by the decisions of the Expert.
For example, by party agreement, a determination may have effect as a recommendation to the parties or may be a binding decision skin to a judgment or adjudicator's determination. Further, because the Expert's authority is drawn from the agreement appointing him or her, the parties can be very specific about what they want the Expert to do ... or not to do.
Advantages of Expert Determination
Expert Determination has become a popular method of resolving disputes in a number of industries involving qualitative or quantitative issues, or issues that are of a specific technical nature or specialised kind, because it is generally quick, inexpensive, informal and confidential.
The principle attraction of Expert Determination is that it can provide a binding determination without involving many of the formalities that can beset arbitration and litigation. It also has the advantage of assisting in preserving business relationships where strictly adversarial proceedings may not.
NZDRC Rules and Guidelines