Section 1
Disputes which by agreement between the parties are to be
settled on the basis of the Rules of Procedure of the Danish
Institute of Arbitration shall be brought before an arbitration
tribunal appointed by the Institute for the individual
dispute.
Section 2
1. The arbitration tribunal shall have its seat in Copenhagen
unless otherwise agreed by the parties. The arbitration tribunal
may decide that individual sessions shall be held outside
Copenhagen.
2. The Institute shall function as a Secretariat for the
arbitration tribunal, cf. however, Section 9 (1).
Section 3
A request for arbitration shall be submitted to the Institute
by the parties or by one of them. The Institute shall notify the
defendant(s) immediately of the submission of a request for
arbitration. A copy of the Institute's Rules of Procedure shall be
sent to the parties, cf. Section 4 (3).
Section 4
1. A request for arbitration shall be in writing and shall
include a clear statement of :
1. The parties to the case.
2. The claim or claims.
3. A short description of the issue in dispute.
4. Other information necessary to enable the Institute to
appoint a Chairman and members of the arbitration tribunal in
accordance with sections 5 and 6.
2. The original arbitration agreement between the parties, or
a certified copy thereof, shall be attached to the request.
3. An agreement to submit to arbitration on the basis of the
Rules of Procedure of the Danish Institute of Arbitration shall be
considered as referring to the rules of procedure applicable to the
tribunals of the Institute at the time the agreement was
made.
Section 5
1. Having heard the parties, the Institute shall appoint a
Chairman and, unless otherwise agreed by the parties, the other
members of the arbitration tribunal. All members of the arbitration
tribunal shall be independent of the parties and impartial, and
shall in all respects be suitable for the office of arbitrator.
Where the parties to the dispute are not all domiciled in the same
country, the person appointed Chairman shall be from a country
other than either of the parties, unless otherwise agreed by the
parties.
2. The arbitration tribunal shall consist of three members
unless otherwise agreed by the parties. The Institute may recommend
the parties to accept settlement of the dispute by a sole
arbitrator in cases not involving matters of principle, where the
amounts concerned are small, and where the Institute otherwise
considers such a solution to be expedient and justifiable. To
qualify for appointment a sole arbitrator must satisfy the criteria
in (1). A sole arbitrator should also hold a law degree, unless the
Institute considers it appropriate in view of the size or nature of
the case to appoint a person with a special technical qualification
or experience. Such an appointment shall be contingent upon the
agreement of the parties to the case.
3. A party, who according to the agreement between the parties
is required to appoint a member of the arbitration tribunal, shall
supply the name and address of the desired candidate within 30 days
of receiving notification from the Institute that a request for
arbitration has been submitted. If a party fails to appoint an
arbitrator, or if the candidate(s) does not satisfy the eligibility
criteria, the appointment shall be made by the Institute when the
period has expired.
4. The Chairman must hold a law degree. If the parties so
desire, or if the Institute considers it appropriate in view of the
special nature of the dispute and there is no objection by either
party, the Institute may appoint as members of the arbitration
tribunal one or more persons having special technical, commercial
or other qualifications or experience which may be of value to the
arbitration tribunal.
5. On the death of an arbitrator a new arbitrator shall be
appointed. The same shall apply where the Institute accepts the
resignation of an arbitrator or where the Institute considers that
the case is not being satisfactorily conducted by the arbitration
tribunal. The appointment of a new arbitrator shall take place
according to the same rules of procedure as for the appointment of
the original arbitrator. The arbitration tribunal shall decide
whether the procedural actions already taken in the case should be
repeated.
Section 6
1. The person called upon to act as arbitrator shall notify
the Institute of any circumstances which may influence his
independence and impartiality as an arbitrator. The Institute shall
decide whether any such circumstances prevent his appointment as
arbitrator.
2. After the establishment of the arbitration tribunal either
party may challenge an arbitrator and the challenge shall in the
first instance be decided by the arbitration tribunal. The
tribunal's decision as to whether an arbitrator may continue in
office or should resign may be referred to the Institute by either
party for re-examination and/or be brought before the ordinary
courts in accordance with Section 4 of the Danish Arbitration Act
No. 181 of May 24, 1972.
3. If the appointment of an arbitrator is revoked, the
Institute shall appoint a new arbitrator in accordance with the
same rules which applied to the appointment of the original
arbitrator.
Section 7
1. As soon as it has appointed the arbitrators, the Institute
shall notify the parties by registered letter of the establishment
of the arbitration tribunal, indicating the names and addresses of
the arbitrators.
Section 8
1. Any decisions relating to the jurisdiction of the
arbitration tribunal and to the validity of the arbitration
agreement shall be made by the arbitration tribunal itself.
2. The arbitration agreement shall continue to be binding even
if, either prior to the request for arbitration or during the
arbitration proceedings, a party requests a court or other judicial
authority to issue an injunction, attach property, or perform other
provisional judicial actions. The party shall notify the
arbitration tribunal of any requests for such measures.
3. Where arbitration has been agreed by the parties and an
arbitration tribunal has been appointed by the Institute, the
proceedings shall be completed, regardless of the absence of a
party from a hearing or a party's refusal to participate in the
proceedings.
Section 9
1. Correspondence between the arbitration tribunal and the
parties shall take place via the Institute. However, the
arbitration tribunal may decide to correspond directly with the
parties. In such cases the arbitration tribunal and the parties
involved shall send a copy of all correspondence to the
Institute.
2. All messages and notifications from the Institute or the
arbitration tribunal shall be regarded as having been lawfully
received by a party when send by registered letter to the party's
address or last known address, where it can be proven that such
party has obtained knowledge thereof.
Section 10
1. The parties shall furnish security for the estimated
arbitration costs, including a fee to cover the Institute's costs
in connection with the case.
2. The Institute shall determine the nature and amount of the
security. Normally, identical security is requested from both
parties. If the defendant does not furnish security, the claimant
shall deposit the full amount.
3. The security must be furnished prior to commencement of the
proceedings. Should the extent of the case prove greater than
originally anticipated, the Institute may require additional
security prior to the continuation of the proceedings.
Section 11
1. Where the request for arbitration is not in the form of a
statement of claim, the claimant shall submit such a statement to
the Institute or to the arbitration tribunal not later than four
weeks after receiving notice of the establishment of the
arbitration tribunal.
2. The statement of claim shall contain the claimant's claim,
particulars of the facts upon which the claim rests, and a list of
the documents upon which the claimant intends to rely. These
documents shall be enclosed in the form of originals or copies. The
statement of claim, with exhibits, shall be submitted in five
copies. The Institute shall forward one copy to the
defendant.
3. Where the arbitration tribunal does not consist of three
members, the number of copies shall exceed the number of
arbitrators by two. Where there are several defendants, a
corresponding additional number of copies shall be submitted.
Section 12
1. When the statement of claim, with exhibits, is sent to the
defendant, the latter is granted a time limit within which to
present his statement of defence and the documents upon which he
intends to rely, in a number of copies corresponding to the
statement of claim.
2. Any counterclaim and the circumstances on which such
counterclaim rests shall be included in the statement of defence or
in a rejoinder. The party served with a counterclaim shall be
granted an appropriate period within which to prepare a written
response in a reply or in an additional plea.
Section 13
1. The parties may also exchange a reply and rejoinder before
a date is fixed for the oral hearing. These written statements
shall be submitted prior to a deadline assigned in each individual
case by the arbitration tribunal.
2. Claims, allegations or defences which are not submitted
within the period provided for the exchange of written pleas cannot
be presented without the consent of the opposing party except with
the permission of the arbitration tribunal in special
circumstances. Special circumstances are deemed to exist in cases
where the tribunal considers that on balance the interests of the
party seeking permission so dictate and where, at the same time,
there are considered to be mitigating circumstances for the
non-submission of the claim, allegation or defence within the
period provided for the exchange of written pleas.
3. Well in advance of the oral hearing each party should
notify the arbitration tribunal and the other party of the
witnesses they wish to produce, and submit copies of the documents
upon which they intend to rely. Where a party has failed to observe
these procedures, the tribunal may consider it necessary either to
postpone the hearing, refuse permission for the examination of such
witnesses, or rule that such documents are inadmissible.
Section 14
Where it is considered desirable that experts be appointed by
the arbitration tribunal, or that the arbitration tribunal or its
own expert members make a survey or inspection of the matter in
dispute, the party or parties concerned should submit a written
request to this effect as soon as possible, stating the relevant
grounds.
Section 15
The arbitration tribunal determines the procedures to be
followed, respecting as far as possible the wishes of the parties,
and fixes a date for an oral hearing. At the request of the parties
the arbitration tribunal may decide that the case be decided solely
on the basis of the relevant documents.
Section 16
The arbitration tribunal may at any time during the
proceedings attempt to settle the case.
Section 17
1. The arbitration tribunal shall maintain a record of its
proceedings, including the date and place of the meetings, the
parties participating, and claims made. Arbitration awards and
settlements shall be recorded in their entirety, or with reference
to the Institute's archives. The arbitration tribunal shall
determine the extent to which minutes of oral hearings should be
included in the records.
2. The parties may request a copy of the records of the
tribunal's proceedings.
Section 18
When the arbitration tribunal considers that the facts of the
case have been made sufficiently clear, or that the parties have
had sufficient time and opportunity to enable them to protect their
interests, the proceedings are closed.
Section 19
Where a party fails to appear or to supply the arbitration
tribunal with information on the facts of the case, the tribunal
decides to make its award on the basis of the facts submitted and
the other available information.
Section 20
1. The award shall be pronounced as quickly as possible and,
where possible, not later than four weeks following closure of the
proceedings. The award shall contain a presentation of the facts of
the case and a reasoned decision of the issues in dispute.
2. The award made by the arbitration tribunal shall provide
for the payment of the arbitration costs. The arbitration tribunal
may order one party to pay the costs of the case to another
party.
Section 21
1. Where the arbitrators cannot agree upon the decision, the
decision shall be made by a majority of votes. In the event of a
tie the Chairman shall provide the deciding vote.
2. An arbitrator who dissents as regards the grounds and/or
the result is entitled to have his opinion included in the
award.
3. If an arbitrator refuses to participate in the preparation
and/or making of an award, the award may be prepared and made by
the remaining members of the arbitration tribunal.
Section 22
1. On conclusion of an arbitration case the arbitration
tribunal shall send a statement of the arbitration costs to the
Institute.
2. The remuneration to the members of the arbitration tribunal
must be approved by the Institute which shall prepare a definitive
statement of the aggregate arbitration costs, including the fee to
the Institute, and arrange for payment with the parties.
3. The Parties shall be jointly and severally liable for the
aggregate arbitration costs, regardless of the distribution of
costs provided in the award and regardless of whether the amount
exceeds the security furnished. A party which pays on behalf of
another party has right of recourse against that party. The
counsels of the parties are only liable for expenses if they have
specifically assumed such liability.
Section 23
The arbitration award shall be final and binding on both
parties.
Section 24
1. On conclusion of the arbitration case and payment of the
costs involved, the Institute shall return original documents,
drawings, etc. to the parties. All other material submitted during
the case shall become the property of the Institute.
2. The Institute shall retain records of arbitration awards
and settlements in its archives for at least 20 years.
Arbitrators' Remuneration and Administrative Fees
Rates for Danish cases
The basic rates are the legal fees applied by the Danish Bar
Association and may be increased by up to one third to cover the
arbitrators' remuneration and the administrative costs of the
arbitration tribunals and the Institute. The fee may be increased
or reduced as deemed appropriate according to the type and size of
the case and the amount of work involved.
Rates for international cases
Size of claim
|
Rate
|
DKK 0-100.000
|
DKK 9.000
|
DKK 100.000-200.000
|
Base rate + 6% of amount exceeding DKK 100.000
|
DKK 200.000-5.000.000
|
Additional 3%
|
DKK 5.000.000 +
|
A suitable amount normally based on a reduced percentage
|
The above rates may be increased or reduced according to the
type and size of the case and the amount of work involved. That
portion of the rate which represents the arbitrators' remuneration
is normally based on the gross amounts which are at issue in the
dispute and which are set out in the claim documents of the parties
involved. If no claim figure is specified by one or more parties,
the costs will be estimated. Over and above the arbitrators'
remuneration, the rate includes a charge to cover the
administrative costs of the arbitration tribunal and of the
Institute.
If the hearing is conducted by a sole arbitrator, the rate is
reduced to between one third and one half of the above amounts in
both Danish and international cases.