Fees and expenses - mediation
The fees and expenses for NZDRC's mediation services may alter from time to time, however the fees in relation to any particular mediation services shall be those that appear on NZDRC's website at the time the application for mediation is made.
Application / Nomination Fee
NZDRC does not charge an application or nomination fee.
NZDRC provides a fully administered mediation service. To ensure that the cost of mediation is proportionate to the amount in dispute our fees are based on the amount at issue.
Our Base Fees include all advance preparation time and attendances by the mediator at the mediation conference per day (a day is defined as the 8.0 hour period between 9.00am and 5.00pm on any given day of the year).
Expenses and disbursements
All expenses/disbursements incurred by the Mediator in the execution of the Mediator’s duties (if any) are additional to the Base Fee and are charged at cost. Such expenses may include for example, Mediator’s travel costs and accommodation, room and equipment hire and refreshments.
Room hire and refreshments typically cost in the region of $250.00 per day depending on the venue and the number of attendees. Many parties have access to meeting rooms at no cost but please note that not all venues are suitable for mediation. Generally at least one additional break-out room or private space is required in addition to the meeting room so that the Mediator can work with the parties separately and privately and/or for the parties to work alone and in private from time to time during the mediation.
Our experienced Registrars would be only too pleased to discuss your particular requirements with you. If you require a neutral venue to be arranged for the mediation we will provide a quotation and make the necessary arrangements for you.
In disputes involving multiple parties/multiple interest groups (generally claims involving more than 4 parties) i.e. disputes relating to leaky buildings, resource consent/land use, corporate/shareholder issues, neighbourhood/community issues, disputes involving multiple insurers etc. NZDRC provides a co-mediation service whereby two (or more) mediators work together with the parties to mediate the dispute. We find that this service delivers a far more efficient mediation process because it enables the parties to work in various interest groups at the same time with the assistance of a mediator, thus progressing the identification and resolution of matters at issue in a far more cost effective and timely manner. If you think our co-mediation service would be appropriate and beneficial for the mediation of your dispute, please call one of our Registrars to discuss the additional cost for this service.
When is payment required?
We require payment of the Base Fee as security for the Mediator’s fees and expenses in advance of the mediation. The Base fee must be paid at the time the signed Agreement to Mediate is filed with NZDRC. No administrative or procedural steps will be taken by NZDRC until payment is made and the funds are cleared.
If there are additional attendances by the Mediator or expenses incurred in relation to the mediation, we require the parties to settle our account immediately following the mediation. NZDRC will issue a tax invoice to the parties on the day following the mediation and we require payment within 2 working days of receipt of invoice.
Liability for payment
The parties are free to make any arrangements as between them for payment of the mediation fees and expenses. However, it is most common, and indeed desirable, that the parties contribute equally to the cost of the mediation process thus confirming that the mediator is employed for the benefit of all parties and ensuring the 'neutral' status of the mediator.
Notwithstanding any agreement as between the parties, under the Mediation Agreement the parties are jointly and severally liable for the fees and expenses of the mediation 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's fees and mediation expenses can 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 Base Fee or any additional invoiced amount.
In any case where a party notifies NZDRC in writing that a scheduled mediation conference date is to be vacated, whether or not the dispute between the parties has been settled, or the mediation conference is adjourned by agreement, or the application for mediation is withdrawn or terminated for any reason whatsoever, and the notice is received by NZDRC during ordinary business hours between 10 and 6 working days from and including the date of the scheduled mediation conference, NZDRC will charge a cancellation fee in the amount of 50% of the Base Fee.
If such notice is received 5 working days or less from and including the date of the scheduled mediation conference, NZDRC will charge a cancellation fee in the amount of 75% of the Base Fee.
In the event that the mediation conference is adjourned by agreement, the parties will be equally liable for the cancellation fee and they will be required to pay NZDRC the balance of the relevant Base Fee (whether 50% or 75%) before a further mediation date will be allocated.
In the event that the application for mediation is withdrawn or cancelled, the cancellation fee will be deducted from the Base Fee paid as security for the mediator’s fees and expenses and the balance of the monies, less NZDRC's administration fee (see below), will be refunded to the parties in the proportions in which the security payment has been made.
Administration Fee payable on withdrawal or settlement of claim
In any case where an application for mediation is withdrawn or cancelled, or the dispute between the parties is resolved after receipt by NZDRC of an application to nominate a Mediator and before a mediation conference is convened, 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 mediation up to and including the date on which the application for mediation was withdrawn or cancelled 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 email@example.com