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Questions about NAI Arbitration

Is the NAI’s consent required for the inclusion of an arbitration clause that refers to NAI arbitration?

Such consent is not required; however, in some cases it is advisable to consult the NAI in advance. If, for instance, an arbitration clause is going to be included in standard terms and conditions which are (or will be) used frequently, the NAI may take into consideration, when amending the NAI database, the expertise of arbitrators desired by the sector in which the terms and conditions are used.

 

How much does NAI arbitration cost?

The costs of NAI arbitration are explained in the Rules.

Basically, it works out as follows:

The costs can be divided into a number of categories. First of all, there are the NAI’s administration costs. These are calculated according to financial interest, based on a scale from EUR 800 (interest of less than EUR 100,000) to a maximum of EUR 25,000 (interest of more than EUR 30,000,000).

Then there are the fees and disbursements of the arbitrator(s). The fees are determined on the basis of three criteria: the time that the arbitrator(s) spent on the case, the monetary interest and the complexity of the case. In practice, account is taken of the number of hours that the arbitrator spent on the case and the hourly rate agreed with the arbitrator involved before confirmation of his appointment by the secretariat. The arrangements are made pursuant to the guidelines set by the Executive Board.

In this context, it should be pointed out that, in practice, three arbitrators generally cost twice as much as one arbitrator. Therefore, in the case of a relatively small interest (less than EUR 500,000), the appointment of one arbitrator is generally recommended.

A third category of costs includes the costs that are not incurred in every arbitration, e.g. the fees for a secretary, expert or interpreter.

Finally, there are the costs of legal assistance if a party is assisted by an attorney.

In view of the foregoing, it is not possible to give a detailed specification of the total costs of arbitration yet to be conducted. However, the parties can prepare a cost estimate themselves using the above details. In that regard, account should also be taken of the expected outcome of the proceedings, as the unsuccessful party will be ordered to pay the costs, except in special events at the arbitral tribunal’s discretion.

 

How long does NAI arbitration take?

The average duration of NAI arbitration is nine months. The duration depends on the complexity of the dispute and particularly the methods of litigation used by the parties (and their attorneys).

 

Is expedited arbitration an option?

The NAI does not offer expedited arbitration, i.e. arbitration in which a decision on the merits can be obtained in accelerated proceedings. In urgent cases, however, a party may ask the arbitral tribunal, once appointed, to establish appropriate rules of procedure.

In addition, the parties may agree to reduce the time-limits for the short answer (14 days) and for the appointment of the arbitrators.

In very urgent cases, the parties may even agree that the arbitrator(s) be directly appointed by the administrator and that a hearing be held immediately after such appointment.

Such agreements may be laid down in the arbitration clause or concluded after the dispute has arisen.

 

Are summary arbitral proceedings possible?

Yes. There are two possibilities:

Proceedings within proceedings on the merits or separate summary proceedings. The arbitral proceedings in proceedings in which an arbitral tribunal has already been appointed, are regulated in Article 35 of the NAI Arbitration Rules. The separate summary proceedings are regulated in Article 36.

More information can be found here.

 

Does the NAI administer certain arbitration?

This question is sometimes asked by interested third parties, such as reporters. In view of the confidential nature of NAI arbitrations, the NAI Secretariat cannot answer this question, whether in the affirmative or the negative.

 

Does the NAI also administer international arbitrations?

Yes.

The Rules are flexible enough to be suitable for both national and international arbitration. In addition, the Rules are geared to deal with the exceptional circumstances of international arbitration: the nationality of arbitrators, language, applicable law and dissenting opinion.

An English translation of the Rules is available for arbitration with foreign parties.

In contracts with foreign parties, reference may be made to NAI arbitration by including the text of the arbitration clause in English, German or French recommended by the NAI.



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Recommended literature

For more in depth knowledge, a list with recommended literature is available