Arbitration cases

Arbitration

Please note: Update soon

The costs of an arbitration case comprise a fee and a charge payable to the Arbitration Board, a fee payable to the arbitration tribunal, expenses relating to meeting room facilities as well as travel expenses, etc.

The fee and charge cover the case and time limit management performed by the Secretariat, the administration involved in the establishment of the arbitration tribunal, certain legal and practical procedural decisions, the fixing of dates for hearings and meetings, including telephone conferences, etc.

The fee payable to members of the arbitration tribunal covers payment for their work. It is calculated on the basis of the total value of the dispute between the parties (the object of the case) and the scope and complexity of the case.

Cases filed before 1 January 2015

If the claim filed in the case does not exceed DKK 6 million and if the arbitration tribunal is composed of three arbitrators, the total fee is calculated on the basis of the table set out in A.1 in the guidelines.

The Arbitration Board general requests payment of a charge of 38.5% of the fee payable to the arbitration tribunal. If the case is settled or withdrawn before its hearing before the tribunal, the board requests payment of a charge of 38.5% of the fee payable to the arbitration tribunal, the minimum charge being DKK 7,000 as the fee in these cases may be somewhat lower than the fee charge in cases including oral hearings.

If the claim filed in the case is DKK 1 million, for example, the total fee payable to the arbitration tribunal is likely to be DKK 75,000. To this should be added the charge of 38.5% payable to the Arbitration Board, ie DKK 28,875. The total legal costs will thus amount to a little under DKK 104,000 plus expenses relating to meeting room facilities, etc.

If the claim filed in the case does not exceed DKK 500,000 and there is only one arbitrator, the total costs (charge payable to the baord, fee to the arbitrator, hire of venue facilities, etc) may stay within the deposit of DKK 40,000 paid. See A.3 of the guidelines.

Cases filed on or after 1 January 2015

A front-end fee of DKK 5,000 is payable. In addition, a service charge amounting to a fixed percentage of the total amount claimed in the case up to DKK 30 million is payable. The percentage is fixed at the rates set out in the table in section C of the guidelines. It may be useful to apply the cost calculator at the bottom of this page.

The service charge is payable no matter whether the case involves a hearing before the arbitration tribunal or is settled. However, only 50% of the service charge is payable if the case is settled or withdrawn within thirty days of receipt of the statement of defence (third party defence). The service charge will be waived completely if the parties abandon the case within thirty days of its receipt by the Arbitration Board.

If the claim filed in the case does not exceed DKK 6 million and if the arbitration tribunal is composed of three arbitrators, the total fee will also be calculated on the basis of the table set out in A1 of the guidelines. If, for example, the claim is DKK 1 million, the total fee is likely to be DKK 75,000. To this will be added a service charge of DKK 17,500 payable to the Arbitration Board (see Section C of the guidelines). This means that the total cost of the case will be a little under DKK 93,000 plus expenses relating to the hire of meeting room facilities, etc.

A party requesting a change of the date set aside for the hearing must pay a charge of DKK 5,000 for such a change. If the parties agree on requesting a new date, for example because of settlement negotiations, the charge will be shared between them. No charge for a change of date is payable if the change is due to matters pertaining to the arbitration tribunal or the Arbitration Board.

If the claim filed in a case does not exceed DKK 500,000 and there is only one arbitrator, total costs (charges to the Arbitration Board, fee to the arbitrator, hiring of meeting facilities, etc) will generally not exceed the DKK 40,000 deposit paid. Fees and charges payable to the board are now lower than previously.

Further information about applicable rates is given in the guidelines. In cases involving a claim for more than DKK 30 million, the service charge will basically be 1%. The rates charges in such case will by and large be the same as the rates charged under the previous system. The Secretariat can provide further information about this.

In cases with three arbitrators, the amount of the claim (up to DKK 6 million) may be entered into the cost calculator to determine the basis for the total amount of fees and charges payable for cases heard under the new system. The costs stated are indicative only, which means that the final costs payable may be different because of the evolution of the case and additional expenses. The calculator should not be used in relation to cases involving claims for less than about DKK 500,000, as such cases are often heard by tribunals with only one arbitrator (see above), and it cannot be used in relation to cases involving claims for more than DKK 6 million.

Initial fee payable to the Arbitration Board – fixed fee 5.000
Service charge payable to the Arbitration Board 2.500
Indicative fees payable to the arbitration tribunal (three arbitrators) 45.000
Total procedural costs excl. of lawyers’ fees, renting of premises, etc 52.500

Small and large scale cases

The Arbitration Board recommends that parties in cases involving claims for less than DKK 500,000 consider whether is would be possible to use an arbitration tribunal with only one arbitrator, as the costs involved in the hearing of the case would otherwise be disproportionately high.

The fee payable to the arbitration tribunal in large-scale cases (cases involving claims for more than DKK 6 million and/or a total fee in excess of DKK 300,000) will be determined by the Arbitration Board on the basis of a recommendation made by the presiding arbitrator. The number of participating arbitrators, the total work performed by the arbitration tribunal, the number of meeting days, the amount of the claim and the nature of the award, including whether the arbitrators are requested to write a full award statement.

In addition, expenses incurred in relation to the hiring of meeting facilities, transport for the arbitration tribunal and hotel accommodation, where applicable, must be paid. If the premises of the Arbitration Board in Vesterbrogade are used, the cost of a large conference room is DKK 7,000 a day, while the price is DKK 3,500 for half a day or for a small meeting room. Cancellations must be communicated no later than thirty days before the meeting date. The full price for hiring the rooms is payable in the event of later cancellation. If meetings are held elsewhere, the actual costs billed are payable. There are differences in price levels between the Greater Copenhagen Area and Jutland. The cancellation policies of the meeting venue will apply.

The parties are jointly and severally liable for all payments, but have recourse against the other parties. Special rules apply to the provision of security for legal costs. They are set out in Chapter 5 of the Arbitration Board’s 2010 Arbitration Rules.

The rules set out in the guidelines on the calculation of fees apply. Parties are entitled separately to bring a decision concerning the determination of costs payable to an arbitration tribunal before an ordinary court of law.

The guidelines of the calculation of fees and service charges in arbitration cases and a list of the fees and charges of the Arbitration Board can be accessed below.

Security and deposit

No fee or charge is payable at the time of the submission of the statement of claim. When proceedings begin, the Arbitration Board will determine the amount of security to be provided relative to the cost of the arbitration case, ie a deposit. The board will inform the parties of the amount, and all parties involved in the case must pay equal shares of the deposit.

An amount of DKK 40,000 will be charged in cases heard by only one arbitrator and a claim for an amount of less than DKK 500,000. In cases where the amount claimed exceeds DKK 500,000, the deposit will be based on the amount claimed.

The deposit will be increased if this proves necessary. The Arbitration Board will not disburse any amount to cover the parties’ expenses and will not take any further steps until additional deposit payments have been made.

Bank guarantees for the costs will not be accepted in connection with the filing of a case for arbitration.

Upon conclusion of a case, the arbitration tribunal will decide how legal costs are to be split between the parties, and the Arbitration Board will then arrange for final payment of costs. Any excess deposit amounts paid to the board will be repaid. Any interest accrued on deposits will go to the Arbitration Board.