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

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.