Arbitration is a way to resolve a dispute. With arbitration, the parties influence the appointment of the arbitrator(s) and the proceedings. The arbitrators have knowledge of the technology involved. Arbitration is a choice to be made by the parties. This can be done either at the beginning of collaboration or when the dispute arises.
How does it work?
The parties that are in dispute contact the institute and request consideration of a matter. Thereby the parties indicate the procedure of their choice: an abridged or regular procedure and one or more arbitrators. The parties indicate the arbitrator’s desired area of competence. Then the institute will propose a number of candidates as arbitrator. Based on this, the parties choose either for one or three arbitrators. The institute indicates the proceedings and the who, when, what.
Abridged procedure: no more than 3 months until the ruling. Parties are each allowed to produce one document in writing; then there is a (Skype) meeting followed by a ruling.
Regular procedure: no more than 6 months until the ruling. The parties determine, in consultation with the arbitrator(s), who will have to produce which document and when (multiple sessions in writing possible); then there is a hearing followed by a ruling.
When a request to handle a matter is submitted, the submitter is liable to pay administrative costs. At the start of the arbitration, the submitter is liable to pay the costs of the arbitration court and the arbitration costs The costs are listed in the table. The amounts are exclusive of VAT.
How does it work?Depending on the technology of the dispute involved, a subject matter expert is selected to act as arbitrator. Communication preferably takes place via electronic means. This saves lots of time and money; most definitely in international disputes.
|Type of costs||Financial interest||Arbitration abridged procedure||Arbitration regular procedure|
|Administrative costs||Any amount||€ 500||€ 500|
|Arbitration court-related costs||Any amount||€ 1.000||€ 1.500|
|The arbitrator’s fee|| a. Up to € 1.000.000
b. €1.000.000 and more
| a. Hourly rate € 250
Total max € 6.250
b. Hourly rate € 312
Total max € 7.800
| Hourly rate € 250
Total max € 6.250
Hourly rate € 312
Total max € 12.480
- The amount applies per arbitrator. Where more than one arbitrator is chosen, the amounts above apply per arbitrator.
- Both the abridged procedure as the usual procedure assume one round in writing. One hearing and a decision. If the Parties wish more procedural actions (additional written round, on-site inspection, hearing witnesses, etc.) this may result in a higher cost maximum. The Parties may make further agreements thereon, in consultation with the Arbitrator and the Administrator.
- The Parties pay an advance. If the arbitrator(s) foresee(s) that the costs will be higher, they will request payment of a new advance.
- Any travel and subsistence expenses of the arbitrator(s) are not included in this cost overview and will be charged separately.
Read the interviews with professionals of both larger and smaller organisations on their experiences with and view of disputes, mediation and arbitration.