Conciliation and mediation

The price of conciliation and mediation is somewhat lower than arbitration. If the conciliation or mediation case can be concluded in half a day the total cost may, for example, be set around DKK 15,000 – 20,000 plus expenses for any personal advisers.

In this example is included a fee for the conciliator or mediator based on actual time spent on the case along with expenses for transport and rent for meeting facilities. Also included are the fees and charges of the Arbitration Board in connection with the administrative case handling, including finding and appointing a suitable conciliator or mediator and making sure demands and deadlines are kept.

At the outset of the case, the parties are informed of the hourly rate for the conciliator/mediator and a deposit is determined. The deposit will be divided equally between the parties unless otherwise agreed on. The deposit is set at DKK 20,000 by default, but will be increased during the course of the case if necessary. The added deposit is subject to joint and several liability. Otherwise, the parties defray their own expenses, including that of personal representation.

Normally, a date for the conciliation or mediation is set to be held 15 days after the conciliator/mediator has been appointed, which provides for an early overview of the expected duration of the case and, consequently, an estimated total cost.

The Arbitration Board is not VAT registered, which is why all fees and charges are VAT exempt. In those instances where the Board processes services subject to VAT – typically fees for expert assessment – the VAT amount will be specified on the bill.

Fees and charges

The Arbitration Board charges an initial fee of DKK 5,000. In addition, a service charge of 0.3% of the total amount claimed is payable, the maximum amount being DKK 10,000.

If the parties withdraw the case within thirty days after it was received by the Arbitration Board, the service charge will be waived.

If the informal consiliation/mediation is unsuccessful, the fee and service charge will be paid back provided that the matter is subjected to arbitration. If it is, a fee and service charge will be payable for the arbitration case instead.

Below is a list of Arbitration Board fees and charges.
Fees and charges (consiliation and mediation)

 

When to use conciliation and mediation?

A clear prerequisite for conciliation and mediation is that the parties agree on such a dispute resolution approach, either because it was agreed in advance or because they agreed upon it after the dispute arose. Conciliation and mediation can be used in cases of all sizes with few or many parties involved.

The rules were introduced in 2004 and revised ind 2015. The success rate for conciliation is relatively high, as the parties have managed to resolve their dispute in the vast majority of cases. To date, mediation has only been used to a very limited extent.