Adjudication process: Grocery Industry Dispute Resolution Scheme
Where the parties do not agree to mediate, or have been unable to resolve all issues in dispute through mediation under the Scheme, they can access Adjudication to obtain a decision from an adjudicator.
Adjudication provides parties to a dispute coming within the scope of the Grocery Industry Dispute Resolution Scheme with a robust dispute resolution process that results in a determination being made by an independent adjudicator, typically within 25 working days.
Process Overview
Start the process
Here is a step-by-step guide on how to initiate dispute resolution under the NZDRC Grocery Scheme.
Appointment of an Adjudicator
An Adjudicator will typically be appointed within 3 Working Days.
Claim
The Claim must be served within 5 Working Days of the Commencement Date.
Response
The Respondent is entitled to serve a Response to the Claim within 10 Working Days of the Commencement Date.
Reply
A Claimant may serve a Reply in answer to any Response within 15 Working Days of the Commencement Date.
Rejoinder
If a Reply is served, a Respondent may also serve a Rejoinder within 18 Working Days of the Commencement Date.
Determination
An Adjudicator’s decision is called a Determination. It will typically be issued within 25 Working Days of the date the dispute is referred to the Scheme.
Cost of adjudication
Our focus is on delivering cost-proportionate process solutions. Find out more about the cost of adjudication.
Adjudication timeframe
The time required for Adjudication can vary depending on various factors. Adjudication involves a number of procedural steps that are designed to enable the Adjudicator to make their Determination within 25 Working Days.
Adjudication will follow a general timeline that includes the following procedural steps:
- Claim: The Claimant must serve the Claim on the Adjudicator and the Respondent within five Working Days of the Adjudicator’s appointment.
- Response: The Respondent may serve a Response on the Adjudicator and every other Party involved in the Dispute within ten working days of the Adjudicator’s appointment.
- Reply: If the Response is served within the Response Period, the Claimant may serve a Reply on the Adjudicator and every other Party within fifteen working days of the Adjudicator’s appointment.
- Rejoinder: If a Reply is served within the Reply Period, the Respondent may serve a Rejoinder strictly in reply to the Reply, on the Adjudicator and every other Party, within eighteen Working Days of the Adjudicator’s appointment.
- Extensions of time: Parties may extend the Response, Reply, or Rejoinder Periods by agreement in writing. The Adjudicator may also allow additional time for these periods if deemed reasonably necessary, either at the request of any Party or on their own initiative. Any extension request must be made before the relevant period expires.
- Determination: The Adjudicator must make their determination within 25 Working Days after the Dispute is referred to the Scheme. However, this period may be extended to reflect any agreed-upon longer periods for the Claim, Response, or Rejoinder Periods, or if the Adjudicator deems a longer period necessary.
While the general timeline is provided, the actual duration of the Adjudication process may vary depending on the circumstances and any extensions granted.
Step 1. Start the process
Follow this step-by-step guide to initiate dispute resolution under the Scheme:
1. Serve a Notice of Dispute: The dispute resolution process begins when the Claimant serves a notice of its intention to commence dispute resolution under the Scheme on the other Parties. This is known as a Notice of Dispute.
Content of the Notice of Dispute: The Notice of Dispute must be in the form published on this website at the time the Notice of Dispute is served. It must contain the following information:
- A statement that the Claimant requires the Dispute to be referred to Dispute Resolution under the Scheme.
- Identification of the requirement(s) of the Grocery Supply Code claimed to have been breached, if applicable.
- A brief description of the nature of the Dispute.
- The names and contact details of the Parties and (if known) their Representatives, including details for electronic communication (if available).
- Identification of the Contract, relationship, or basis of claim that the Dispute relates to.
- An explanation of the compensation, relief, or remedy that is sought.
A Notice of Dispute that is missing any of the minimum information is invalid. However, the Claimant can fix the Notice of Dispute by providing the correct information within three Working Days of receiving notice that the information was missing.
2. Apply to NZDRC: Once a Notice of Dispute has been served, an Application for Dispute Resolution must be completed within five Working Days of the Notice of Dispute being served. This period can be extended by written agreement between the Parties.
Form for Application for Dispute Resolution: The Application for Dispute Resolution must be made using this form:
3. NZDRC Offers Adjudication: If an Application for Dispute Resolution is valid, NZDRC will appoint a Mediator upon confirmation that both Parties agree the Dispute should be referred to Mediation. If the Application is invalid, NZDRC will advise the Claimant. The Claimant has three working days to fix and resubmit it.
If the Parties do not agree to Mediation, NZDRC will appoint an adjudicator under the process below.
Step 2. Appointment of an Adjudicator
After receiving a valid application, NZDRC will use its best endeavours to appoint a suitably qualified and independent Adjudicator within 3 Working Days.
Any appointment will take into account any criteria agreed by the parties to the dispute, the nature and value of the dispute, the number of parties, their location, and languages, the availability of any nominees, the International Bar Association Guidelines on Conflicts of Interest in International Commercial Arbitration, and any other information provided by the parties or relevant to the case.
The parties may also, by agreement, nominate an Adjudicator for appointment. Subject to NZDRC’s assessment that the nominee is qualified, eligible and free of conflicts, NZDRC will appoint that person.
The appointment will be communicated to the parties by the Registrar and the date of that notification will be the Commencement Date. All dates for the process will run from the Commencement Date other than the date for the Adjudicator’s Determination which runs from the date the Dispute was referred to the Scheme
Step 3. Claim
Every Adjudication starts with a Claim. The Claim must be served by a Claimant on the Respondent within 5 Working Days of the Commencement Date.
The Claim must include the following information:
- (a) the nature and basis of the Claim;
- (b) the amount of compensation claimed or other relief or remedy sought, including any claim for interest;
- (c) copies of any expert reports, witness statements or other documents the Claimant relies on; and
- (d) submissions on the factual and legal issues involved in the Claim, and the Claimant’s contentions as to those issues.
In essence, the Claim should provide a clear explanation as to what the Claimant seeks, why they say they are entitled to it, with reference to evidence which supports the Claim.
Step 4. Response
A Respondent may serve a Response in answer to the Claim. Any Response must be served by the Respondent on the Claimant within 10 Working Days of the Commencement Date.
A Response must include the following information:
- (a) what matters in the Claim are accepted or agreed;
- (b) what matters are disputed, with reasons why;
- (c) any defence to the Claim;
- (d) copies of any expert reports, witness statements or other documents the Respondent relies on; and
- (e) submission on the factual and legal issues involved in the Claim and the Response, and the Respondent’s contentions as to those issues.
The Response is an opportunity for a Respondent to clarify its position with respect to the Claim and to provide an explanation as to which matters are in dispute, what the Respondent says is the answer to those disputed matters, why they say their position is correct, with reference to evidence which supports that position.
The Response is not an opportunity to bring a counterclaim. However, a Response can include defences to the Claim that are open to the Respondent (in fact or in law). It does not matter if the defences, or the matters that form the basis of the defences, have not been raised before.
The Response can include a claim for set-off or abatement. However, the maximum that the Adjudicator can award is limited to the proved value of the Claim.
Step 5. Reply
A Claimant may serve a Reply in answer to any Response. Any Reply must be served by a Claimant on the Respondent within 15 Working Days of the Commencement Date.
If a Claimant chooses to serve a Reply, that submission must be strictly in reply to the Response. The Reply is not an opportunity to raise any new issues. A Claimant may include any supporting documents that are relevant to the Reply.
Step 6. Rejoinder
A Respondent may serve a Rejoinder in answer to any Reply. Any Rejoinder must be served by a Respondent on the Claimant 18 Working Days of the Commencement Date.
If a Respondent chooses to serve a Rejoinder, that submission must be strictly in answer to the Reply. The Rejoinder is not an opportunity to raise any new issues. A Respondent may include any supporting documents that are relevant to the Rejoinder.
Step 7. Determination
An Adjudicator’s decision is called a Determination. An Adjudicator will use reasonable endeavours to make their Determination within 25 Working Days of the date the Dispute is referred to the Scheme (subject to any extensions to the timetable).
The Adjudicator will issue a Determination after considering all the submissions and evidence provided by the parties.
An Adjudicator must have regard to the applicable law and will decide the matter after weighing any competing evidence and applying the applicable law to the facts of the case as they are found.
Peer Review
All determinations are submitted to a peer review process by NZDRC. This ensures effective quality assurance, reduces the chances of errors requiring correction or explanation, and provides parties with an additional layer of reassurance in the process and outcomes. However, the determination remains that of the Adjudicator who is solely responsible for the decision-making process.
Determination is binding
The Determination is binding on the parties unless and until the dispute is finally determined by legal proceedings in a court or subsequent agreement of the parties. The Determination has effect as an order of the District Court and can be enforced through the courts.
Rights of Appeal
A party who is not satisfied with the Determination may appeal only on a question of law as follows:
- (a) to the District Court if the amount at issue is less than or equal to $350,000 or if no amount was claimed; or
- (b) to the High Court if the amount at issue is more than $350,000.
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