In connection with expert determination proceedings and decisions on security provided, the party requesting such proceedings must immediately provide security for payment of case costs. In addition to the fee charged by the Arbitration Board for management of the case, the security must cover fees payable to the expert.
The fee amount and other costs are determined by the Arbitration Board on the basis of information provided by the expert. The fee payable to the expert(s) is usually DKK 10,000-15,000 depending on what is considered reasonable given the scope and nature of the case and the time to be spent on it. General expectations are that half a working day is needed for preparation and that half a working day will be spent on an inspection, if any. It is estimated that one working day will be needed for preparation of the decision.
In cases where the scope of the case or the time needed for the processing of the matter is below usual or anticipated levels, including in connection with settlements, the total fee is reduced, taking into account the actual time spent, the timing of a settlement, if any, and the complexity of the matter.
In cases where the scope of the case or the time needed for the processing of the matter exceeds usual or anticipated levels, including in cases resulting in settlements and complex cases with extensive case documentation, the fee may be increased.
The expert has a duty to ensure on an ongoing basis that sufficient security is available to cover all costs associated with the processing of the case.
Immediately after having received a request for expert determination or a decision on security provided, the Arbitration Board will ask for provision of security from the party having filed the request, usually in the form of a deposit of DKK 30,000 for cases filed in accordance with AB92 and DKK 20,000 for cases filed in accordance with AB18. If the deposit is not paid within the time specified by the Board – typically eight days – the case may be dismissed without further notice.
If it proves necessary during the expert determination period, additional deposits may be requested.
The expert decides who is to pay the costs, including the fee. The parties are jointly and severally liable for the payment of any amount exceeding the security provided. Each party pays its own legal counsel and other advisors, if any.
The Arbitration Board is not registered for VAT, and all fees and charges are therefore exempt from VAT. If and when the Arbitration Board invoices services on which VAT is payable – typically expenses related to expert appraisal – the VAT amount will be specified in the settlement letter.
Cases of this type are filed as G-cases.