Arbitration including simplified arbitration

In arbitral cases the parties are requested to pay a front-end fee of DKK 5,000 if the case is filed in accordance with AB92.

In simplified arbitration, cases filed in accordance with AB28, AB Abridged, ABR18, ABR Abridged and ABT18 the parties are requested to pay a front-end fee of DKK 3,000 for the Arbitration Board’s management of the case.

In addition, a service charge or a fixed percentage of the claim amount is payable. The percentage is determined using the table in Section C of the guidelines. To calculate the total case costs, you can use the cost calculator at the bottom of this page.

The service charge must in principle be paid irrespective of whether the proceedings involve a main hearing or a settlement of the case. However, there are a few exceptions.

In cases that are settled, discontinued in some other way or dismissed within the first thirty days after they were filed, only a fee is payable, as the service charge is then waived. A precondition for this is that the Arbitration Board is notified in writing within those thirty days after the filing of the complaint. The thirty-day time limit may be suspended for up to three months if the parties submit a written notification stating that settlement negotiations are taking place.

The service charge is reduced to 50% in cases that are settled, discontinued in some other way or dismissed before receipt of the respondent’s statement of defence. This period is counted from a date thirty days after the commencement of the case up to the day before receipt of the statement of defence. The 50% service charge will not exceed DKK 100,000. If the case is settled after receipt of the statement of defence and up to four weeks before the main hearing, the maximum service charge will be DKK 200,000. If the case is settled less than four weeks before the main hearing, for example two weeks before the hearing, a full service charge is payable.

If a service charge is payable, it will always be at least DKK 2,000 in cases filed in accordance with AB92 and at least DKK 4,000 in cases files in accordance with AB18, AB Abridged, ABR18, ABR Abridged or ABT18.

If the claim amount is less than DKK 6 million and the arbitral tribunal has three arbitrators, the total fee payable will be calculated as shown in the table in A.1 in the guidelines. If, for example, the claim amount is DKK 1 million the total fee payable is likely to be DKK 75,000, to which will be added a service charge of DKK 17,500 payable to the Arbitration Board as well as expenses relating to meeting room facilities, etc.

An amount of DKK 5,000 must be paid by a party requesting a new date for the hearing of the case. If the parties agree on setting a new date, for example because of settlement negotiations, the cost must be shared by the parties, whereas no charge will be imposed if the change of dates is due to aspects relating to the arbitral tribunal or the Arbitration Board.

If the claim amount is less than DKK 500,000 and the arbitral tribunal has one arbitrator the general principle is that total costs should not exceed the DKK 40,000 deposit paid.

Cases lodged before 1 January 2015

As mentioned above, the fee payable to the Arbitration Board is calculated on the basis of the guidelines.

The Arbitration Board will in principle demand payment of a charge of 38.5% of the fee payable to the arbitral tribunal. If the case is settled or withdrawn before its hearing before the tribunal, a fee of 38.5% of the arbitral tribunal’s fee is payable to the Board, the minimum amount payable being DKK 7,000.

For example, if the level of claim is DKK 1 million, the total fee of the arbitral tribunal is likely to be DKK 75,000 plus the 38.5% charge payable to the Arbitration Board, ie DKK 28,875, and expenses relating to meeting room facilities, etc.

Cost calculator

In cases with three arbitrators, the claim amount can be entered into the cost calculator, which on the basis of the claim amount can provide an estimate of the total cost of cases filed after 1 January 2015. The costs calculated are indicative only, which means that the final costs may be higher or lower depending on how the case develops and other expenses incurred.

The calculator should not be used for cases in which the claim is less than DKK 500,000, since such cases are often heard by only one arbitrator (see above). The calculator can be used to calculate the arbitral tribunal’s fee in cases with a level of claim in excess of DKK 6 million, but the amount calculated is indicative only since fees in such cases are determined by the Arbitration Board alone on the basis of the calculator. In cases with one arbitrator or five arbitrators the parties should contact the Arbitration Board for a calculation of case costs. The calculator cannot be used for cases in which the level of claim exceeds DKK 0.5 billion.

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 of less than DKK 500,000 consider whether it would be possible to use an arbitral 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 of 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 determination of the fee will take the number of participating arbitrators, the total work to be performed by the arbitral tribunal, the complexity of the case, the number of days involved, the size of the claim and the nature of the award into account. The amount shown in the cost calculator is only an indicative assessment of costs.

 

In addition, expenses incurred in relation to the use of meeting facilities, transport for the arbitral 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 5,000 a day, while DKK 2,500 will be charged for a small meeting room or several small meeting rooms in mediation or conciliation cases. Cancellations must be communicated not later than thirty days before the meeting date. The full price for the rooms is payable in the event of later cancellation unless the meeting is held on another day. If meetings are held elsewhere, the actual costs billed are payable.

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 Part 5 of the Arbitration Board’s Rules on arbitration in the building and construction sector (VBA Arbitration Rules 2010).

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.

Fees and charges

Security: 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 arbitral case, ie a deposit. The parties to the case must pay equal shares of the deposit.

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

The deposit will be adjusted on an ongoing basis. 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 arbitral tribunal will decide how legal costs are to be distributed between the parties, and the Arbitration Board will then arrange for final payment of costs. Any excess deposit amounts paid to the Arbitration Board will be repaid. Interest accrued on deposits will be retained by the Arbitration Board.