Fees and expenses - NZIAC

1.0 Registration Fee

 

When submitting the Application for Arbitration the Claimant shall pay to NZIAC a Registration Fee of:

 

(a) $2,000.00 for arbitral proceedings with one arbitrator; or

 

(b) $2,500.00 for arbitral proceedings with more than one arbitrator.

 

All sums stated are in New Zealand dollars and are inclusive of GST if any.

 

If the Claimant fails to pay the Registration Fee, NZIAC will not proceed with the Arbitration.

 

The Registration Fee is non-refundable.

 

2.0 Administration Fee

 

The Parties shall pay to NZIAC an Administration Fee in accordance with the following schedule:

 

Amount in Dispute

Administration Fee

≤ $249,999.99 $2,500.00
$250,000.00 ≤ $499,999.99 $2,500.00 plus 0.4% on the amount above $250,000.00
$500,000.00 ≤ $999,999.99 $3,500.00 plus 0.3% on the amount above $500,000.00
$1,000,000.00 ≤ $4,999,999.99 $5,000.00 plus 0.25% on the amount above $1,000,000.00
$5,000,000.00 ≤ $9,999,999.99 $15,000.00 plus 0.07% on the amount above $5,000,000.00
$10,000,000.00≤ $99,999,999.99 $18,500.00 plus 0.015% on the amount above $10,000,000.00
≥ $100,000,000.00 $32,000.00 plus 0.01% on the amount above $100,000,000.00
Up to a maximum of $50,000.00

 

For the purpose of calculating the amount in dispute, the GST inclusive value in New Zealand dollars calculated at the date of the Application for Arbitration of all principal claims, counterclaims and affirmative defences shall be added together.

 

Interest shall not be taken into account unless the interest claim exceeds the aggregate principal amount in which case the Administration Fee shall be calculated on the value of the interest claims alone.

 

If the amount in dispute is not specified in the claims, counterclaims and affirmative defences, the amount in dispute shall be determined by the Arbitral Tribunal.

 

The Administration Fee does not include the Fees and Expenses of the Arbitral Tribunal, or usage, hire, and cost, of facilities and support services for and in connection with the hearing.

 

All sums stated are in New Zealand dollars and are inclusive of GST if any.

 

The Parties shall be jointly and severally liable for payment of the NZIAC Administration Fee.

 

The NZIAC Administration Fee is payable in full, whether or not the claim is settled, or the agreement to arbitrate is withdrawn by the Parties, or an Award is made.

 

The Award finally determining the substantive matters at issue between the Parties will not be released to the Parties by NZIAC until the Administration Fee and the Fees and Expenses of the Arbitral Tribunal have been paid to NZIAC in full.

 

3.0 Security for Arbitral Tribunal’s Fees and Expenses

 

A Notice of Acceptance will not be served on the Parties to the Arbitration by NZIAC until the Parties have paid (in clear funds) into the trust account of NZIAC a deposit as security for the Arbitral Tribunal’s Fees and Expenses in accordance with the following schedule (all amounts are stated in New Zealand dollars):

 

Amount of Claim

Security Amount

  1 Arbitrator 2 or 3 Arbitrators
≤ $249,999.99  $10,000.00 $25,000.00
$250,000.00 ≤ $499,999.99 $15,000.00 $35,000.00
$500,000.00 ≤ $999,999.99 $20,000.00 $45,000.00
$1,000,000.00 ≤ $4,999,999.99 $25,000.00 $55,000.00
$5,000,000.00 ≤ $9,999,999.99 $30,000.00 $65,000.00
$10,000,000.00≤ $99,999,999.99 $35,000.00 $75,000.00
≥ $100,000,000.00 $40,000.00 $85,000.00

 

Security - Not an Estimate - Supplementary Advances - Disbursement

 

Please note that 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 NZIAC.

 

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 NZIAC as its 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 NZIAC as security, NZIAC 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 NZIAC, 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 NZIAC.

 

As soon as practicable after the Final Award has been provided to the Parties, NZIAC will render a final statement of accounting to the Parties of deposits and advances received and payments made to the Arbitral Tribunal and NZIAC 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 NZIAC 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 NZIAC to meeting the Fees and Expenses of the substitute arbitrator.

 

4.0 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 NZIAC. No administrative or procedural steps will be taken by NZIAC until payment of the prescribed security is made in full and the funds are clear.

 

Payment of the NZIAC Administration Fee is required to be made within five (5) working days of receipt of an Invoice rendered by NZIAC to the Parties. The Administration Fee will be invoiced in New Zealand dollars, but may be paid in other convertible currencies, at rates prevailing at the time of payment, provided that any transfer and/or currency exchange charges shall be borne by the payer.

 

In the event that the combined amount of the Arbitral Tribunal’s Fees and Expenses and the NZIAC Administration Fee are greater than the amount held as security, the Parties must pay the balance within five (5) working days of receipt of notification by NZIAC of such additional Fees and Expenses.

 

5.0 Liability for Payment

 

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

 

However, and 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 or additional Award fixing the costs and expenses of the Arbitration, together with the NZIAC Administration Fee and any additional costs howsoever incurred by the Arbitral Tribunal or NZIAC in recovering any overdue monies, on a full indemnity basis.

 

6.0 Methods of Payment

 

Payment of all NZIAC Fees and Arbitration Expenses may be made by cheque, direct credit, or bank transfer.

 

7.0 Cancellation Fees

 

In any case where a Party notifies the Arbitral Tribunal in writing 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 fifteen (15) and eleven (11) 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 attendances on the same.

 

If such notice is received ten (10) working days or less from and including the date of the scheduled conference, inspection, or hearing, the Arbitral Tribunal 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 attendances on 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 and the NZIAC Administration Fee 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 NZIAC accordingly in writing within five (5) working days of notice of settlement or withdrawal of the agreement to arbitrate.

 

In the event that the combined amount of the Arbitral Tribunal’s Fees and Expenses and the NZIAC Administration Fee are greater than the amount held as security, the Parties must pay the balance within five (5) working days of receipt of notification by NZIAC of such additional Fees and Expenses.

 

 

 

 

 

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