Financial Services Disputes

Arbitration and mediation are increasingly being adopted as preferred processes for the resolution of disputes arising within the financial services sector
Contact Us

The ability to have a dispute arbitrated or mediated by a third party who has specialist knowledge and experience within the financial services sector is increasingly being viewed as essential to ensuring a credible dispute resolution process.

NZDRC is also often called on to administer expert determinations for finance and tax disputes. In 2019, the Chartered Accountants Australian and New Zealand (CAANZ) announced that it would not provide a service nominating independent experts and selected NZDRC as an alternative provider for contractual dispute resolution, recognising NZDRC’s experience in this area.

NZDRC has arbitrators, mediators and experts working with us who have a significant level of experience in dealing with a wide range of issues which commonly present in financial services disputes. This means NZDRC is well placed to ensure the most robust, professional and sector specific service is available for parties operating within this sector.

Additionally, NZDRC’s processes are specifically designed to ensure the most proportionate level of response is adopted providing parties with a fair, prompt and cost effective means of resolving their dispute. Both processes also allow commercial parties to resolve their disputes in a private forum maintaining confidentiality.

Arbitration

NZDRC provides both ad hoc arbitration services as well as institutional arbitration under its Arbitration Rules. Both options provide parties with access to arbitration on either a fixed or capped fee basis, providing parties with much needed certainty in terms of cost.

The NZDRC Arbitration Rules are intended to give parties the widest choice and capacity to adopt fully administered procedures that are fair, prompt and cost effective, and which provide a proportionate response to the amounts in dispute and the complexity of the issues involved. A summary procedure (early dismissal of claims and defences) is also available under the NZDRC Rules providing parties to financial disputes with access to an early resolution in appropriate cases.

NZDRC’s ad hoc arbitration service provides parties with flexibility to craft their own process while still giving them access to NZDRC’s institutional oversight, assistance, and support. Importantly, the service also provides certainty in terms of a capped arbitration fee.

When entering into a contract, we recommend that parties adopt one of our model clauses to ensure they can access these services should a dispute arise at a later date. Model clauses for both NZDRC ad hoc arbitration and NZDRC institutional arbitration may be found here.

Mediation

NZDRC’s commercial mediation offering provides commercial parties with a professional, fully administered, and credible mediation process. For commercial parties who are looking to craft a more flexible solution to their dispute, this option empowers parties to develop and explore mutually benefical settlement options with the assistance of an independent third party mediator who brings with them significant industry specific experience.

A model clause for mediation may be found here.

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 (or non-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.

A model clause for expert determination may be found here.

 

Find out more

NZDRC has significant knowledge and experience, which has been built up over the course of more than 30 years during which we have delivered consistent, professional and credible private dispute resolution services. Contact us today to find out more about how we can help you or your clients.

The Trusts Act 2019: keeping it in the family

By Maria Cole* No-one likes to have their dirty laundry aired in public. Sadly, it has been all too common for parties in family trust and estate disputes, to find their private family affairs made public and become the topic of law journal articles and gossip at...

What are the cost implications of challenging an arbitral award through the courts?

By Maria Cole. A recent decision of the Singapore High Court shone a spotlight on indemnity costs and when they will, and won’t, be granted following the unsuccessful challenge of an arbitral award. The decision highlighted the opposite principles in place between...

EQUITABLE COMPENSATION ALLOWED FOR BREACH OF ARBITRATION CLAUSE BY A THIRD PARTY

By Melissa Perkin and Melt Strydom.   Argos Pereira España SL and another v Athenian Marine Ltd [2021] EWHC 554 The English High Court was asked whether a third party which derived rights from a contract, and failed to comply with the contract's arbitration...

LIMITS TO APPEALS OF ARBITRAL AWARDS

By Melissa Perkin and Hannah Stanley. The issue of whether there should be a right to review an arbitral award for an error of law, and if so in what circumstances may it be done, has been controversial.[1] Three recent High Court decisions have reflected that a...

It pays to check: US$54 million error a “simple” mistake

By Maria Cole. We all make mistakes – it’s human nature. However, some mistakes have bigger consequences and a London Court of International Arbitration (LCIA) panel recently had a US$54 million howler!  When calculating the value of shares in assessing damages in a...

Alternative Dispute Resolution under the Trusts Act 2019 – missing in action?

By John Green   The new Trusts Act 2019 (Act) came into force on 30 January 2021. It brings a number of significant changes to trust law and is the first major reform in 70 years. The Act applies to existing and future family trusts, trading trusts and trusts...

The Trusts Act 2019: What you need to know

By Melissa Perkin and Melt Strydom Introduction Although exact numbers are unknown, it is estimated there are hundreds of thousands of trusts in New Zealand. The new Trusts Act 2019 came into force on 30 January 2021. It brings a number of significant changes to trust...

Commercial Lease Mediation and Arbitration FAQs

By Jesika Sabo and Maria Cole, NZDRC   Do both parties need to agree to participate? Yes, parties who wish to access the scheme must agree to do so, whether they wish to arbitrate or mediate, even if they already have an agreement to arbitrate or mediate in the...

ARBITRATORS, INDEPENDENCE AND IMPARTIALITY – IMPORTANT GUIDANCE FROM THE UK SUPREME COURT

By Melissa Perkin Halliburton Company v Chubb Bermuda Insurance Ltd [2020] UKSC 48 Introduction On 27 November 2020, the UK Supreme Court handed down its judgment in the landmark case of Halliburton Company v Chubb Bermuda Insurance Ltd [2020] UKSC 48. The decision...

COVID-19 Commercial Lease Disputes: Free Arbitration and Mediation available now

Many commercial tenants found their leases were inadequate to deal with the consequences of the COVID-19 restrictions.  In a welcome step, the Government has established a scheme allowing parties with a qualifying dispute to access fully subsidised arbitration or...