Arbitration Fees

The Fees and Expenses for NZDRC’s Arbitration services may alter from time to time, however the Fees in relation to any particular Arbitration services shall be those that appear on NZDRC’s Website at the time the Application for Arbitration is made. Reference should also be made to Appendix 1 of the Arbitration Rules.
 
NZDRC provides a fully administered Arbitration service. To ensure that the cost of Arbitration is proportionate to the amount in dispute, our arbitrators’ fees are capped based on the amount in dispute.
 
For the purpose of calculating the amount in dispute, the GST, value added tax, or any other similar tax which might apply, inclusive value of all claims, counterclaims, and affirmative defences in New Zealand dollars must be added together.
 
Interest will not be taken into account unless the interest claimed by a Party exceeds the aggregate principal amount, in which case the amount in dispute will be calculated on the value of the interest claim alone.
 
All sums stated are in New Zealand dollars and are inclusive of GST (if any).
 

PRELIMINARY PAYMENT

Preliminary Payment must be made to NZDRC either before or immediately after the submission of the Application for Arbitration. The Preliminary Payment must include:

(a) the Registration Fee;
 
(b) a payment toward the Administration Fee, to be calculated in accordance with the Applicant’s reasonable assessment of the aggregate amount in dispute; and

(c) a payment toward Security for the Arbitral Tribunal’s Fees and Expenses, to be calculated in accordance with the Applicant’s reasonable estimate of the aggregate amount in dispute.

No administrative or procedural steps will be taken by NZDRC in relation to the appointment of the Arbitral Tribunal until the Preliminary Payment has been paid in full.
 


REGISTRATION FEE

In accordance with Rules 5.5-5.7, the Parties must pay NZDRC a non-refundable Registration Fee of:

(a) $1,000.00 for Arbitration with one arbitrator; or

(b) $2,000.00 for Arbitration with more than one arbitrator.
 

ADMINISTRATION FEE

In accordance with Rules 5.5-5.7, the Parties must pay NZDRC a non-refundable Administration Fee in accordance with the following schedule:

Amount in Dispute Administration Fee
≤ $249,999.99 $1,250.00
$250,000.00 ≤ $499,999.99 $1,250.00 plus 0.7% on the amount above $250,000.00
$500,000.00 ≤ $999,999.99 $3,000.00 plus 0.4% on the amount above $500,000.00
$1,000,000.00 ≤ $2,499,999.99 $5,000.00 plus 0.16% on the amount above $1,000,000.00
$2,500,000.00 ≤ $4,999,999.99 $7,500.00 plus 0.1% on the amount above $2,500,000.00
$5,000,000.00 ≤ $9,999,999.99 $10,000.00 plus 0.1% on the amount above $5,000,000.00
$10,000,000.00 ≤ $49,999,999.99 $15,000.00 plus 0.0125% on the amount above $10,000,000.00
$50,000,000.00 ≤ $99,999,999.99 $20,000.00 plus 0.02% on the amount above $50,000,000.00
≥ $100,000,000.00 $30,000.00 plus 0.01% on the amount above $100,000,000.00 up to a maximum of $50,000.00
Declaratory relief only $3,000.00
 
Urgent Interim Relief

Where Urgent Interim Relief is sought, the applicant must pay NZDRC an additional non-refundable Administration Fee at the time the application for Urgent Interim Relief is made, in accordance with the following schedule:

Amount in Dispute Administration Fee - Urgent Interim Relief
≤ $249,999.99 $1,000.00
$250,000.00 ≤ $499,999.99 $1,250.00
$500,000.00 ≤ $999,999.99 $1,500.00
$1,000,000.00 ≤ $2,499,999.99 $1,625.00
$2,500,000.00 ≤ $4,999,999.99 $1,750.00
$5,000,000.00 ≤ $9,999,999.99 $2,000.00
$10,000,000.00 ≤ $49,999,999.99 $2,500.00
$50,000,000.00 ≤ $99,999,999.99 $2,750.00
≥ $100,000,000.00 $3,000.00
Declaratory relief only $1,500.00

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 Arbitration.
 


ARBITRATOR'S FEES AND EXPENSES

 
Fixed Fee service under NZDRC ECA45 Arbitration Rules

NZDRC provides a fully administered fixed fee arbitration service under the NZDRC ECA45 Arbitration Rules for disputes where the Claim is for a monetary amount and the amount claimed by the Claimant is less than NZ$50,000, and where there are three or less items in dispute in the Claim and Counterclaim. The number of items at issue that may be dealt with under the fixed price low value claim service is strictly limited.

No conference of the Parties or inspection of the subject matter of the dispute or any other thing related to the dispute is included in the fixed fee.

Under the fixed fee service, NZDRC charges the following Fee for the Arbitral Tribunal's services:

Code Total amount in dispute Arbitrator's Fee Documents that each Party may file in support of the Claim or Counterclaim
LVAC10 ≤ $9,999.99 $3,000.00 Contract Documents together with 15 single sided A4 pages of submissions and evidence in relation to the Claim or Counterclaim.
LVAC20 $10,000.00 ≤ $19,999.99 $5,000.00 Contract Documents together with 20 single sided A4 pages of submissions and evidence in relation to the Claim or Counterclaim.
LVAC30 $20,000.00 ≤ $29,999.99 $7,250.00 Contract Documents together with 30 single sided A4 pages of submissions and evidence in relation to the Claim or Counterclaim.
LVAC40 $30,000.00 ≤ $39,999.99 $8,500.00 Contract Documents together with 40 single sided A4 pages of submissions and evidence in relation to the Claim or Counterclaim.
LVAC50 $40,000.00 ≤ $49,999.99 $10,000.00 Contract Documents together with 50 single sided A4 pages of submissions and evidence in relation to the Claim or Counterclaim.

A Notice of Appointment of the Arbitral Tribunal will not be served on the Parties by NZDRC until the Parties have paid (in clear funds) into the trust account of NZDRC the prescribed Fee in full as security for the Arbitral Tribunal's Fees and Expenses in accordance with the above schedule.

General service

Where the amount in dispute is equal to or exceeds NZ$50,000.00, or the nature of the claim does not otherwise meet the criteria for NZDRC’s fixed fee service, the arbitrator is entitled to fix a Fee to be paid by the Parties that is reasonable having regard to the work done by the arbitrator, and which Fee may not, except in exceptional circumstances, exceed the maximum amount in the following schedule (Scheduled Maximum Fee):

Amount in Dispute Fee
≤ $249,999.99 $30,000.00
$250,000.00 ≤ $499,999.99 $35,000.00 plus 2% on the amount above $250,000.00
$500,000.00 ≤ $999,999.99 $40,000.00 plus 3% on the amount above $500,000.00
$1,000,000.00 ≤ $2,499,999.99 $55,000.00 plus 2% on the amount above $1,000,000.00
$2,500,000.00 ≤ $4,999,999.99 $85,000.00 plus 1.6% on the amount above $2,500,000.00
$5,000,000.00 ≤ $9,999,999.99 $125,000.00 plus 0.5% on the amount above $5,000,000.00
$10,000,000.00 ≤ $49,999,999.99 $150,000.00 plus 0.125% on the amount above $10,000,000.00
$50,000,000.00 ≤ $99,999,999.99 $200,000.00 plus 0.2% on the amount above $50,000,000.00
≥ $100,000,000.00 $300,000.00 plus 0.01% on the amount above $100,000,000.00 up to a maximum of $500,000.00
Declaratory relief only $40,000.00

In exceptional circumstances NZDRC may, on application by an arbitrator, copied to every Party, fix the amount that the arbitrator is entitled to be paid at a higher figure than the Scheduled Maximum Fee after allowing every Party an opportunity to respond. If a Party wishes to exercise that right, that Party must within five working days of receipt of the arbitrator’s application for additional payment, communicate its response to NZDRC, the arbitrator, and every other Party.

For the purpose of supporting a claim for additional payment, the arbitrator’s all-inclusive hourly rate may not exceed NZ$850.00 per hour for time engaged on the duties of the Arbitration.

For the avoidance of any doubt, a decision by NZDRC to increase the Fee that an arbitrator is entitled to be paid above the Scheduled Maximum Fee is a decision of an administrative nature made under Rule 42.1.

NZDRC is entitled to recover the actual and reasonable Expenses of the Arbitration in addition to the Fee.

If an arbitrator becomes in fact or in law, or by reason of infirmity, unable to perform the functions of that office, or withdraws from office, or is replaced in accordance with Rules 6.18 or 7.1-7.7, NZDRC will determine the amount of Fees and Expenses to be paid to the replaced arbitrator (if any). NZDRC will take into consideration the circumstances of the case, including, but not limited to, the basis for withdrawal or grounds for replacement, the work done by the arbitrator in connection with the Arbitration, and the complexity of the subject matter.
 

Security for Arbitral Tribunal's Fees and Expenses

A Notice of Appointment of the Arbitral Tribunal will not be served on the Parties by NZDRC until the Parties have paid (in clear funds) into the trust account of NZDRC the prescribed security for the Arbitral Tribunal’s Fees and Expenses in accordance with the following schedule:
 
Amount in Dispute Security Amount

 

1 Arbitrator 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 ≤ $2,499,999.99 $25,000.00 $55,000.00
$2,500,000.00 ≤ $4,999,999.99 $30,000.00 $65,000.00
$5,000,000.00 ≤ $9,999,999.99 $35,000.00 $75,000.00
$10,000,000.00 ≤ $49,999,999.99 $40,000.00 $85,000.00
$50,000,000.00 ≤ $99,999,999.99 $45,000.00 $90,000.00
≥ $100,000,000.00 $50,000.00 $100,000.00
Declaratory relief only $20,000.00 $45,000.00
 
Security amount not an estimate

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 which will be calculated in accordance with the criteria set out in this Appendix to the Rules.

The initial advance is a nominal amount only and is not an estimate of the cost of the Arbitration. The Arbitral Tribunal is entitled to fix and be paid a Fee by the Parties that is reasonable having regard to work done, which Fee may not, except in exceptional circumstances, exceed the Scheduled Maximum Fee set out at section 4 above together with any Additional Fee or Cancellation Fee that the Arbitral Tribunal is entitled to under these Rules.
 

Interim Relief, Summary Procedure, Joinder, and Consolidation

Whether the Arbitration proceeds under the fixed fee service or general service, an arbitrator is entitled to fix and be paid an amount by the Parties, over and above the Scheduled Maximum Fee, which amount is reasonable having regard to the work done by the arbitrator to determine any application for Interim Relief, early dismissal of a Claim or Defence, Joinder, or Consolidation (Additional Fee).

In the event of any dispute arising in relation to the Additional Fee fixed by the arbitrator, NZDRC will determine the additional amount that the arbitrator is entitled to be paid after allowing every Party an opportunity to respond. If a Party wishes to exercise that right, that Party must within five working days of receipt of notice of the proposed Additional Fee communicate its response to NZDRC and the arbitrator.

For the avoidance of any doubt, a decision by NZDRC as to the Additional Fee that an arbitrator is entitled to be paid for determining any application for Interim Relief, early dismissal of a Claim or Defence, Joinder, or Consolidation, is a decision of an administrative nature made under Rule 42.1.

Security for Interim Relief, Summary Procedure, and Joinder

Where Interim Relief, early dismissal of a Claim or Defence, or Joinder is sought, the applicant must pay NZDRC an additional amount as security for the Arbitral Tribunal’s Fees and Expenses in accordance with the following schedule:

Amount in Dispute Additional Security
≤ $249,999.99 $ 5,000.00
$250,000.00 ≤ $499,999.99 $ 7,500.00
$500,000.00 ≤ $999,999.99 $10,000.00
$1,000,000.00 ≤ $2,499,999.99 $11,125.00
$2,500,000.00 ≤ $4,999,999.99 $12,500.00
$5,000,000.00 ≤ $9,999,999.99 $15,000.00
$10,000,000.00 ≤ $49,999,999.99 $17,500.00
$50,000,000.00 ≤ $99,999,999.99 $18,750.00
≥ $100,000,000.00 $20,000.00
Declaratory relief only $10,000.00

Supplementary advances and interim payments

During the course of the Arbitration, NZDRC may from time to time request one or several further supplementary, interim, and/or final advances and deposits from the Parties towards the Fees and 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 on demand.

The Registrar may, from time to time on instruction of the Arbitral Tribunal, apply the advances and deposits paid by the Parties as security 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 will be retained by NZDRC as its own property.
 

Multiple Parties

In Arbitrations involving multiple Parties the provisions in sections 1-4 apply mutatis mutandis, save for the Registration Fee shall be increased by a factor of 50% of the relevant scheduled amount for the third and every other additional Party to the Arbitration.
 

Joinder

The applicant must pay NZDRC a Joinder Fee either before or immediately after submission of the Application for Joinder. The Joinder Fee must include:

(a) a non-refundable Registration Fee of:

(i) $1,000.00 for an Arbitration with one arbitrator; or

(ii) $2,000.00 for an Arbitration with more than one arbitrator.

(b) an advance payment toward the Administration Fee to be calculated in accordance with the applicant’s reasonable assessment of the value of its cross-claims against the non-party and the non-party’s counterclaims and/or affirmative defences; and

(c) an advance payment toward Security for the Arbitral Tribunal’s Fees and Expenses to be calculated in accordance with the applicant’s reasonable assessment of the value of its cross-claims against the non-party and the non-party’s counterclaims and/or affirmative defences.

No administrative or procedural steps will be taken by NZDRC in relation to the Application for Joinder until the Joinder Fee has been paid in full.

In the event that the Application for Joinder is declined by the Arbitral Tribunal, NZDRC will refund the applicant the whole of the amount paid in advance toward the Administration Fee and any unexpended amount paid as security for the Arbitral Tribunal’s Fees and Expenses.

Consolidation

The applicant must pay NZDRC a non-refundable Consolidation Fee of:

(a) $2,000.00 where each of the Arbitral Tribunals is composed of a sole arbitrator; or

(b) $3,500.00 where one or more of the Arbitral Tribunals is composed of more than one arbitrator.

The Consolidation Fee must be paid by the applicant either before or immediately after submission of the Application for Consolidation.

No administrative or procedural steps will be taken by NZDRC in relation to the Application for Consolidation until the Consolidation Fee has been paid.

For the avoidance of doubt, the Fee that an arbitrator is entitled to be paid in respect of consolidated Arbitration proceedings shall be the total amount of the separate Scheduled Maximum Fees payable in respect of each Arbitration proceeding (together with any Additional Fee or Cancellation Fee that the Arbitral Tribunal is entitled to under these Rules). The Fee is not calculated on the aggregate value of the amounts in dispute in each of the consolidated Arbitration proceedings.
 


WHEN IS PAYMENT REQUIRED?

The Preliminary Payment must be made to NZDRC either before or immediately after submission of the Application for Arbitration.

NZDRC may from time to time request one or more Supplementary Payments from the Parties towards the Fees and Expenses of the Arbitration, incurred or to be incurred on behalf of, or for the benefit of the Parties.

If the actual aggregate amount in dispute is greater than the value used for the purpose of calculating the Preliminary Payment, the final Supplementary Payment must include:

(a) the remaining balance of the Administration Fee, to be calculated in accordance with the schedule in section 3 of Appendix 1 to the Arbitration Rules; and

(b) the remaining balance of the Arbitral Tribunal’s Fees and Expenses, to be calculated in accordance with the criteria set out in this Appendix to the Rules.

The Parties must pay all Supplementary Payments within three working days of receipt of request by NZDRC for such additional Fees and Expenses.

If any required deposit or advance is not paid in full within three working days after receipt of the request, the Registrar will so inform the Parties in order that one or another of them may make the required payment. If payment is not made within a further five working days, the Arbitral Tribunal may order the suspension or termination of the Arbitration.

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

In the event that the Fees and Expenses of the Arbitration are greater than the amount held as security, the Parties will be advised as soon as practicable by NZDRC of the Arbitral Tribunal’s actual Fees and Expenses, 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 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 amount to the Parties in the manner determined by the Arbitral Tribunal.

No administrative or procedural steps will be taken by NZDRC while any payment is due under these Rules.
 


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


METHODS OF PAYMENT

Payment of all NZDRC Fees and Expenses may be made by direct credit, bank transfer, or by credit card (Visa and MasterCard only). A merchant transaction fee of 2.75% is payable in addition to the published NZDRC Fee for all credit card payments.

All Fees, Expenses, and costs related to the Arbitration 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 must be borne by the payer.
 


SETTLEMENT OR WITHDRAWAL

In the event that the dispute is settled or the Arbitration Agreement is withdrawn by the Parties before a Partial Award is made that determines all of the matters at issue, the Arbitral Tribunal’s Fees and Expenses incurred prior to that date, including any entitlement to Cancellation Fees and any outstanding balance of the NZDRC Administration Fee will be deducted from the amount paid as security by the Parties for the costs of the Arbitration.

The balance of the security monies will be refunded to the Parties in the proportions in which the security payment was made, unless the Parties agree otherwise and instruct NZDRC accordingly in writing within five working days of notice of settlement or withdrawal of the Arbitration Agreement.

In the event that the combined amount of the Fees and Expenses and the NZDRC Administration Fee are greater than the amount held as security, the Parties must pay the balance within five working days of receipt of notification by NZDRC of such additional Fees and Expenses.
 


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 between 15 and 11 working days from and including the date of the scheduled conference, inspection, or hearing, the Arbitral Tribunal may charge a 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 (Cancellation Fee).

If such notice is received ten 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.

For the purpose of calculating Cancellation Fees, an arbitrator’s daily charges may not exceed eight hours at an all-inclusive hourly rate of NZ$850.00 per hour.
 

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