Fees & Expenses – General Arbitration
Security for Arbitrator’s Fees and Expenses – General Arbitration
For General Arbitrations a Notice of Acceptance will not be served on the parties to the arbitration by the Tribunal until the parties have paid (in clear funds) into the trust account of the Tribunal a deposit as security for the Arbitrator’s fees and expenses in accordance with the following schedules:
EXPEDITED COMMERCIAL ARBITRATION ON THE DOCUMENTS - 45 DAY (ECA45)
EXPEDITED COMMERCIAL ARBITRATION - 60 DAY (ECA60)
EXPEDITED COMMERCIAL ARBITRATION - 90 DAY (ECA90)
ADMINISTERED DOMESTIC COMMERCIAL ARBITRATION (DCA)
BESPOKE COMMERCIAL ARBITRATION (BCA)
The security for the Arbitrator’s fees and expenses required to be paid before a Notice of Acceptance will be served on the parties in respect of a Bespoke Arbitration Agreement is fixed by arrangement with the Tribunal at the time of drafting the Arbitration Agreement.
Please note that any amount paid as security for the Arbitrator’s fees and expenses is a nominal amount only and is not, and shall not be considered, an estimate of the cost of the arbitration which shall be calculated according to the time engaged on the duties of the arbitration by the Arbitrator together with any expenses incurred by the Arbitrator in the execution of those duties.
Security-Not an Estimate-Supplementary Advances-Disbursement
Please note that for all General Claims, any amount paid as security for the Arbitrator’s fees and expenses is merely an initial advance against the Arbitrator’s fees and expenses. The initial advance is a nominal amount only and is not, and shall not be considered, an estimate of the cost of the arbitration which shall be calculated according to the time engaged on the duties of the arbitration by the Arbitrator together with any expenses incurred by the Arbitrator in the execution of those duties.
During the course of the arbitral proceedings, the Arbitral Tribunal may from time to time request one or several further supplementary interim and/or final advances and deposits from the parties towards the costs or expenses of the arbitration incurred or to be incurred on behalf of or for the benefit of the parties. All such advances are to be paid into the trust account of the Building Disputes Tribunal.
The Building Disputes Tribunal Administrator may from time to time on instruction of the Arbitral Tribunal, apply the advances and deposits paid by the parties as security for the Arbitrator’s fees and expenses towards interim payments to the Arbitral Tribunal and render an updated statement of accounting to the parties.
Any interest which may accrue on such deposits shall be retained by the Tribunal.
If the required deposits are not paid in full within ten (10) working days after receipt of the request, the Registrar shall so inform the parties in order that one or another of them may make the required payment. If such payment is not made within a further five (5) working days, the Arbitral Tribunal may order the suspension or termination of the arbitral proceedings.
In the event that the Arbitrator’s fees and expenses prove to be less than the amount held by the Tribunal as security, the Tribunal will provide the Arbitrator’s award(s) to the parties to the arbitration as soon as practicable after the Arbitrator has made his or her award(s) and the Tribunal will disburse the balance of the monies held as security to the parties in the manner determined by the Arbitrator.
In the event that the Arbitrator’s fees and expenses prove to be greater than the amount held as security, the parties will be advised of the Arbitrator’s actual fees and expenses by the Tribunal and the parties will be requested to pay the balance in order to uplift the award. When the balance is paid in full, a copy of the award will be provided to each of the parties to the arbitration by the Tribunal.
After the award has been provided to the parties, the Building Disputes Tribunal Administrator shall render a final statement of accounting to the parties of deposits and advances received, payments made to the Arbitral Tribunal, and reimbursement of any unexpended balance of the security monies to the parties.
If an Arbitrator becomes in law or in fact unable to perform the functions of that office, or for any other reason the Arbitrator withdraws from office, or the parties agree to the revocation of that Arbitrator’s mandate or the Tribunal removes the Arbitrator from office in response to a request from a party on the ground that the Arbitrator failed to fulfill the Arbitrator’s functions in accordance with these Rules and/or within the prescribed time limits, the Arbitrator shall not be entitled to be paid any fees or expenses in connection with the arbitration and any amount paid as security for the Arbitrator’s fees and expenses will be applied by the Tribunal to meeting the fees and expenses of the substitute Arbitrator.
When is Payment required?
Payment of the security for the Arbitrator’s fees and expenses is required to be made at the time the signed Agreement to Arbitrate is filed with the Tribunal. No administrative or procedural steps will be taken by the Tribunal until payment of the required security is made in full and the funds are clear.
In the event that the Arbitrator’s fees and expenses are greater than the amount held as security, the parties must pay the balance within 2 working days of receipt of notification by the Tribunal of such additional fees and expenses.
Liability for Payment
The parties are free to make any arrangements as between them for payment of the arbitration fees and expenses.
However, and notwithstanding any such agreement as between the parties, the parties shall at all times be jointly and severally liable for the Arbitrator’s fees and expenses, including any fees and expenses incurred by the Arbitrator in the absence of an award or additional award fixing the costs and expenses of the arbitration, together with any additional costs howsoever incurred by the Tribunal in recovering any overdue monies on a full indemnity basis.
Methods of Payment
Payment of all Tribunal fees and arbitration expenses may be made by cheque, direct credit, or by credit card (Visa and MasterCard only). Please note that if paying by credit card there is a merchant transaction fee of 2.75% payable in addition to the fixed fee for LVAC’s or the specified security amount for any General Arbitration or for any additional invoiced amount.
In any case where a party notifies the Arbitrator in writing that a scheduled conference or hearing date is to be vacated, whether or not the dispute between the parties has been settled, or the conference or hearing is adjourned by agreement, or the application for arbitration is withdrawn or terminated by the parties for any reason whatsoever, and the notice is received by the Arbitrator during ordinary business hours between 10 and 6 working days from and including the date of the scheduled conference or hearing, the Tribunal will charge a cancellation fee in the amount of 50% of the Arbitrator’s daily charges.
If such notice is received 5 working days or less from and including the date of the scheduled conference or hearing, the Tribunal will charge a cancellation fee in the amount of 75% of the Arbitrator’s daily charges.
In the event that the dispute is settled or the agreement to arbitrate is withdrawn by the parties, the Arbitrator’s fees and expenses including any entitlement to cancellation fees will be deducted from the amount paid as security for the Arbitrator’s fees and expenses. The balance of the security monies will be refunded to the parties in the proportions in which the payment has been made unless the parties agree otherwise and instruct the Tribunal accordingly in writing within 2 working days of notice of settlement or withdrawal.
Administration Fee payable on Withdrawal or Settlement of Claim
In any case where an arbitration claim is withdrawn or terminated, or the dispute between the parties is resolved after receipt by the Tribunal of an application to appoint an Arbitrator and before the provision of an award, the Tribunal will charge a fee being not less than $750.00 in respect of the fees and expenses incurred in relation to the administration of the arbitration up to and including the date on which the arbitration claim was withdrawn or terminated or the Tribunal was notified that the dispute had been resolved.