Fixed fee arbitration for Low Value Claims
NZDRC provides a fully administered fixed fee arbitration service for Low Value Arbitration Claims (LVAC’s) of limited complexity under the ECA45 Rules (Please note the special conditions that attach to this offer stated below).
A Notice of Acceptance of Appointment as Arbitrator 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 the required security for the Arbitrator’s fees and expenses.
The arbitration fees (inclusive of GST) and the required security amounts for LVAC’s are as follows:
*The number of items at issue that may be dealt with under the fixed price LVAC service is strictly limited i.e. a total number of issues in the claim and counterclaim of 3 variations, or 3 items of allegedly defective work, or extension of time for 1 event and 2 variations etc.
In the event that a claim or counterclaim presents undue complexity, or the submissions and evidence submitted in support of the claim or counterclaim exceed the permitted number of documents notwithstanding the low value of the claim or the limited number of matters at issue, NZDRC may, at its sole discretion, decline to provide the arbitration on a fixed fee basis under the LVAC scheme.
In that event, NZDRC will advise the parties accordingly and the arbitration will simply revert to a General Arbitration and the cost of the arbitration will be determined by the time the Arbitrator is required to expend on the duties of the matter together with any expenses incurred by the Arbitrator in the execution of those duties.
When is Payment required?
Payment is required to be made at the time the signed Agreement to Arbitrate is filed with NZDRC. No administrative or procedural steps will be taken by NZDRC until payment is made in full and the funds are clear.
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 Arbitrator’s fees and expenses, including any fees and expenses incurred by the Arbitrator in the absence of an award or additional award fixing the costs and expenses of the arbitration, together with any additional costs howsoever incurred by NZDRC in recovering any overdue monies on a full indemnity basis.
Methods of Payment
Payment of all NZDRC fees and arbitration 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 the fixed fee for LVAC’s or the specified security amount for any General Arbitration or for any additional invoiced amount.
In any case where a party notifies the Arbitrator in writing that a scheduled conference or hearing date is to be vacated, whether or not the dispute between the parties has been settled, or the conference 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 Arbitrator during ordinary business hours between 10 and 6 working days from and including the date of the scheduled conference or hearing, NZDRC will charge a cancellation fee in the amount of 50% of the Arbitrator’s daily charges.
If such notice is received 5 working days or less from and including the date of the scheduled conference or hearing, NZDRC will charge a cancellation fee in the amount of 75% of the Arbitrator’s daily charges.
In the event that the dispute is settled or the agreement to arbitrate is withdrawn by the parties, the Arbitrator’s fees and expenses including any entitlement to cancellation fees will be deducted from the amount paid as security for the Arbitrator’s fees and expenses. The balance of the security monies will be refunded to the parties in equal proportions unless the parties agree otherwise and instruct NZDRC accordingly in writing within 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 to appoint an Arbitrator 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.