Arb-Med Fees

The Fees and Expenses for BDT's Arb-Med service may alter from time to time, however the Fees in relation to any particular service shall be those that appear on BDT's website at the time the Application for Arb-Med is made.

BDT provides a fully administered Arb-Med service. To ensure that the cost of Arb-Med is proportionate to the amount in dispute, our arbitrators’ fees are capped for the Arbitration component of the service based on the amount in dispute.

For the purpose of calculating the amount in dispute, the GST, value added tax, or any other similar tax which might apply, inclusive value of all claims, counterclaims, and affirmative defences in New Zealand dollars must be added together.

Interest will not be taken into account unless the interest claimed by a Party exceeds the aggregate principal amount, in which case the amount in dispute will be calculated on the value of the interest claim alone.

All sums stated are in New Zealand dollars and are inclusive of GST (if any).


PRELIMINARY PAYMENT

A Preliminary Payment must be made to BDT either before or immediately after the submission of the Application for Arb-Med. The Preliminary Payment must include:

(b) a payment toward the Administration Fee, to be calculated in accordance with the Applicant’s reasonable assessment of the aggregate amount in dispute; and

(c) a payment toward Security for the Arbitral Tribunal’s Fees and Expenses, to be calculated in accordance with the Applicant’s reasonable estimate of the aggregate amount in dispute.

No administrative or procedural steps will be taken by BDT in relation to the appointment of the Arbitral Tribunal until the Preliminary Payment has been paid in full.


REGISTRATION FEE

In accordance with Rules 5.5-5.7, the Parties must pay BDT a non-refundable Registration Fee of:

(a) $1,000.00 for Arb-Med with one arbitrator; or

(b) $2,000.00 for Arb-Med with more than one arbitrator.
 


ADMINISTRATION FEE

In accordance with Rules 5.5-5.7, the Parties must pay BDT a non-refundable Administration Fee in accordance with the following schedule:

Amount in Dispute Administration Fee
≤ $249,999.99 $1,250.00
$250,000.00 ≤ $499,999.99 $1,250.00 plus 0.7% on the amount above $250,000.00
$500,000.00 ≤ $999,999.99 $3,000.00 plus 0.4% on the amount above $500,000.00
$1,000,000.00 ≤ $2,499,999.99 $5,000.00 plus 0.16% on the amount above $1,000,000.00
$2,500,000.00 ≤ $4,999,999.99 $7,500.00 plus 0.1% on the amount above $2,500,000.00
$5,000,000.00 ≤ $9,999,999.99 $10,000.00 plus 0.1% on the amount above $5,000,000.00
$10,000,000.00 ≤ $49,999,999.99 $15,000.00 plus 0.0125% on the amount above $10,000,000.00
$50,000,000.00 ≤ $99,999,999.99 $20,000.00 plus 0.02% on the amount above $50,000,000.00
≥ $100,000,000.00 $30,000.00 plus 0.01% on the amount above $100,000,000.00
up to a maximum of $50,000.00
Declaratory relief only $3,000.00

 

Urgent Interim Relief

Where Urgent Interim Relief is sought, the applicant must pay BDT an additional non-refundable Administration Fee at the time the application for Urgent Interim Relief is made, in accordance with the following schedule:

Amount in Dispute Administration Fee – Urgent Interim Relief
≤ $249,999.99 $1,000.00
$250,000.00 ≤ $499,999.99 $1,250.00
$500,000.00 ≤ $999,999.99 $1,500.00
$1,000,000.00 ≤ $2,499,999.99 $1,625.00
$2,500,000.00 ≤ $4,999,999.99 $1,750.00
$5,000,000.00 ≤ $9,999,999.99 $2,000.00
$10,000,000.00 ≤ $49,999,999.99 $2,500.00
$50,000,000.00 ≤ $99,999,999.99 $2,750.00
≥ $100,000,000.00 $3,000.00
Declaratory relief only $1,500.00

The Administration Fee does not include the Fees and Expenses of the Arbitral Tribunal, or usage, hire, and cost of facilities and support services for and in connection with the Arb-Med proceeding.
 


ARBITRATOR'S FEES AND EXPENSES

An arbitrator is entitled to fix and be paid a Fee, for time engaged on the duties of the Arb-Med process.
 

Arbitration Fee

An arbitrator is entitled to fix and be paid a Fee that is reasonable having regard to the work done by the arbitrator while engaged on the duties of the Arbitration, and which Fee may not, except in exceptional circumstances, exceed the maximum amount in the following schedule (Scheduled Maximum Fee):

Amount in Dispute Fee
≤ $249,999.99 $30,000.00
$250,000.00 ≤ $499,999.99 $35,000.00 plus 2% on the amount above $250,000.00
$500,000.00 ≤ $999,999.99 $40,000.00 plus 3% on the amount above $500,000.00
$1,000,000.00 ≤ $2,499,999.99 $55,000.00 plus 2% on the amount above $1,000,000.00
$2,500,000.00 ≤ $4,999,999.99 $85,000.00 plus 1.6% on the amount above $2,500,000.00
$5,000,000.00 ≤ $9,999,999.99 $125,000.00 plus 0.5% on the amount above $5,000,000.00
$10,000,000.00 ≤ $49,999,999.99 $150,000.00 plus 0.125% on the amount above $10,000,000.00
$50,000,000.00 ≤ $99,999,999.99 $200,000.00 plus 0.2% on the amount above $50,000,000.00
≥ $100,000,000.00 $300,000.00 plus 0.01% on the amount above $100,000,000.00 up to a maximum of $500,000.00
Declaratory relief only $40,000.00

In exceptional circumstances BDT may, on application by an arbitrator, copied to every Party, fix the amount that the arbitrator is entitled to be paid for the Arbitration at a higher figure than the Scheduled Maximum Fee after allowing every Party an opportunity to respond. If a Party wishes to exercise that right, that Party must within five working days of receipt of the arbitrator’s application for additional payment, communicate its response to BDT, the arbitrator, and every other Party.

For the purpose of supporting a claim for payment of an amount additional to the Scheduled Maximum Fee, the arbitrator’s all-inclusive hourly rate may not exceed NZ$850.00 per hour.

For the avoidance of any doubt, a decision by BDT to increase the Fee that an arbitrator is entitled to be paid above the Scheduled Maximum Fee for the Arbitration is a decision of an administrative nature made under Rule 34.1.
 

Interim Relief, Summary Procedure, Joinder, and Consolidation

An arbitrator is entitled to fix and be paid an amount by the Parties, over and above the Scheduled Maximum Fee, which amount is reasonable having regard to the work done by the arbitrator to determine any application for Interim Relief, early dismissal of a Claim or Defence, Joinder, or Consolidation (Additional Fee).

In the event of any dispute arising in relation to the Additional Fee fixed by the arbitrator, BDT will determine the additional amount that the arbitrator is entitled to be paid after allowing every Party an opportunity to respond. If a Party wishes to exercise that right, that Party must within five working days of receipt of notice of the proposed Additional Fee communicate its response to BDT and the arbitrator.

For the avoidance of any doubt, a decision by BDT as to the Additional Fee that an arbitrator is entitled to be paid for determining any application for Interim Relief, early dismissal of a Claim or Defence, Joinder, or Consolidation, is a decision of an administrative nature made under Rule 34.1.

Mediation Fee

An arbitrator is entitled to fix and be paid a Fee that is reasonable having regard to the work done by the arbitrator while engaged on the duties of the Mediation (Mediation Fee).

For the purpose of supporting a claim for payment of a Mediation Fee, the arbitrator’s all-inclusive hourly rate may not exceed NZ$850.00 per hour.

A decision by BDT as to the amount to be paid to an arbitrator in respect of the Mediation Fee, is a decision of an administrative nature made under Rule 34.1.

Arb-Med Expenses

BDT is entitled to recover the actual and reasonable Expenses of the Arb-Med proceeding in addition to the Fee.

Fee payable on replacement of arbitrator

If an arbitrator becomes in fact or in law, or by reason of infirmity, unable to perform the functions of that office, or withdraws from office, or is replaced in accordance with Rules 6.18 or 7.1-7.7, BDT will determine the amount of Fees and Expenses to be paid to the replaced arbitrator (if any). BDT will take into consideration the circumstances of the case, including, but not limited to, the basis for withdrawal or grounds for replacement, the work done by the arbitrator in connection with the Arb-Med process, and the complexity of the subject matter.

Security for Arbitral Tribunal’s Fees and Expenses

A Notice of Appointment of the Arbitral Tribunal will not be served on the Parties by BDT until the Parties have paid (in clear funds) into the trust account of BDT the prescribed security for the Arbitral Tribunal’s Fees and Expenses in accordance with the following schedule:

Amount in dispute Security Amount
  1 Arbitrator 3 Arbitrators
≤ $249,999.99 $10,000.00 $25,000.00
$250,000.00 ≤ $499,999.99 $15,000.00 $35,000.00
$500,000.00 ≤ $999,999.99 $20,000.00 $45,000.00
$1,000,000.00 ≤ $2,499,999.99 $25,000.00 $55,000.00
$2,500,000.00 ≤ $4,999,999.99 $30,000.00 $65,000.00
$5,000,000.00 ≤ $9,999,999.99 $35,000.00 $75,000.00
$10,000,000.00 ≤ $49,999,999.99 $40,000.00 $85,000.00
$50,000,000.00 ≤ $99,999,999.99 $45,000.00 $90,000.00
≥ $100,000,000.00 $50,000.00 $100,000.00
Declaratory relief only $20,000.00 $45,000.00
 
Security for Interim Relief, Summary Procedure, and Joinder

Where Interim Relief, early dismissal of a Claim or Defence, or Joinder is sought, the applicant must pay BDT an additional amount as security for the Arbitral Tribunal’s Fees and Expenses in accordance with the following schedule:

Amount in Dispute Additional Security
≤ $249,999.99 $5,000.00
$250,000.00 ≤ $499,999.99 $7,500.00
$500,000.00 ≤ $999,999.99 $10,000.00
$1,000,000.00 ≤ $2,499,999.99 $11,125.00
$2,500,000.00 ≤ $4,999,999.99 $12,500.00
$5,000,000.00 ≤ $9,999,999.99 $15,000.00
$10,000,000.00 ≤ $49,999,999.99 $17,500.00
$50,000,000.00 ≤ $99,999,999.99 $18,750.00
≥ $100,000,000.00 $20,000.00
Declaratory relief only $10,000.00
 
Security amount not an estimate

Any amount paid as security for the Arbitral Tribunal’s Fees and Expenses is merely an initial advance against the Arbitral Tribunal’s Fees and Expenses which will be calculated in accordance with the criteria set out in this Appendix to the Rules.

The initial advance is a nominal amount only and is not an estimate of the cost of the Arb-Med process. The Arbitral Tribunal is entitled to fix a Fee to be paid by the Parties that is reasonable having regard to work done, which Fee may not, except in exceptional circumstances, exceed the Scheduled Maximum Fee set out above, together with any Mediation Fee, Additional Fee, or Cancellation Fee that the Arbitral Tribunal is entitled to under these Rules.
 

Supplementary advances and interim payments

During the course of the Arbitration, BDT may from time to time request one or several further supplementary, interim, and/or final advances and deposits from the Parties towards the Fees and Expenses of the Arb-Med proceeding, 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 BDT on demand.

The Registrar may, from time to time on instruction of the Arbitral Tribunal, apply the advances and deposits paid by the Parties as security 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 will be retained by BDT as its own property.
 

Multiple Parties

In Arb-Med involving multiple Parties, the provisions in sections 1-4 apply mutatis mutandis, save for the Registration Fee shall be increased by a factor of 50% of the relevant scheduled amount for the third and every other additional Party to the Arb-Med proceeding.
 

Joinder

The applicant must pay BDT a Joinder Fee either before or immediately after submission of the Application for Joinder. The Joinder Fee must include:

(a) a non-refundable Registration Fee of:

(i) $1,000.00 for Arb-Med with one arbitrator; or

(ii) $2,000.00 for Arb-Med with more than one arbitrator.

(b) an advance payment toward the Administration Fee to be calculated in accordance with the applicant’s reasonable assessment of the value of its cross-claims against the non-party and the non-party’s counterclaims and/or affirmative defences; and

(c) an advance payment toward Security for the Arbitral Tribunal’s Fees and Expenses to be calculated in accordance with the applicant’s reasonable assessment of the value of its cross-claims against the non-party and the non-party’s counterclaims and/or affirmative defences.

No administrative or procedural steps will be taken by BDT in relation to the Application for Joinder until the Joinder Fee has been paid in full.

In the event that the Application for Joinder is declined by the Arbitral Tribunal, BDT will refund the applicant the whole of the amount paid in advance toward the Administration Fee and any unexpended amount paid as security for the Arbitral Tribunal’s Fees and Expenses.
 

Consolidation

The applicant must pay BDT a non-refundable Consolidation Fee of:

(a) $2,000.00 where each of the Arbitral Tribunals is composed of a sole arbitrator; or

(b) $3,500.00 where one or more of the Arbitral Tribunals is composed of more than one arbitrator.

The Consolidation Fee must be paid by the applicant either before or immediately after submission of the Application for Consolidation.

No administrative or procedural steps will be taken by BDT in relation to the Application for Consolidation until the Consolidation Fee has been paid.

For the avoidance of doubt, the Fee that an arbitrator is entitled to be paid in respect of the consolidated Arb-Med proceedings shall be the total amount of the separate Scheduled Maximum Fees payable in respect of each Arb-Med proceeding (together with any Mediation Fee, Additional Fee, or Cancellation Fee that the Arbitral Tribunal is entitled to under these Rules). The Fee is not calculated on the aggregate value of the amounts in dispute in each of the consolidated Arb-Med proceedings.
 


WHEN IS PAYMENT REQUIRED?

The Preliminary Payment must be made to BDT either before or immediately after submission of the Application for Arb-Med.

BDT may from time to time request one or more Supplementary Payments from the Parties towards the Fees and Expenses incurred or to be incurred on behalf of, or for the benefit of the Parties, in Arb-Med.

If the actual aggregate amount in dispute is greater than the value used for the purpose of calculating the Preliminary Payment, the final Supplementary Payment must include:

(a) the remaining balance of the Administration Fee, to be calculated in accordance with the schedule in section 3 of Appendix 1 to the BDT Arb-Med Rules; and

(b) the remaining balance of the Arbitral Tribunal’s Fees and Expenses, to be calculated in accordance with the criteria set out in this Appendix to the Rules.

The Parties must pay all Supplementary Payments within three working days of receipt of request by BDT for such additional Fees and Expenses.

If any required deposit or advance is not paid in full within three working days after receipt of the request, the Registrar will so inform the Parties in order that one or another of them may make the required payment. If payment is not made within a further five working days, the Arbitral Tribunal may order the suspension or termination of the Arb-Med proceeding.

If the Fees and Expenses of the Arb-Med proceeding are less than the amount held by BDT as security, BDT will provide the Arbitral Tribunal’s Award to the Parties as soon as practicable after the Arbitral Tribunal has made its Award.

In the event that the Fees and Expenses of the Arb-Med proceeding are greater than the amount held as security, the Parties will be advised as soon as practicable by BDT of the Arbitral Tribunal’s actual Fees and Expenses, 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 by BDT.

As soon as practicable after an Award on Agreed Terms or a Final Award has been provided to the Parties, BDT will render a final statement of accounting to the Parties of deposits and advances received and payments made to the Arbitral Tribunal, and BDT will reimburse any unexpended balance of the security amount to the Parties in the manner determined by the Arbitral Tribunal.

No administrative or procedural steps will be taken by BDT while any payment is due under these Rules.
 


LIABILITY FOR PAYMENT

The Parties are free to make any arrangements as between them for payment of the Arb-Med Fees and Expenses.

However, and notwithstanding any agreement as between the Parties, the Parties will at all times be jointly and severally liable for the Arbitral Tribunal’s Fees and Expenses, whether or not it makes an Award fixing the costs and expenses of the Arbitration, together with the BDT Administration Fee and any costs howsoever incurred by BDT in recovering any overdue monies on a full indemnity basis.
 


METHODS OF PAYMENT

Payment of all BDT Fees and Expenses may be made by direct credit, bank transfer, or by credit card (Visa and MasterCard only). A merchant transaction fee of 2.95% is payable in addition to the published BDT Fee for all credit card payments.

All Fees, Expenses, and costs related to the Arb-Med proceeding will be invoiced in New Zealand dollars, but may be paid in other convertible currencies at rates prevailing at the time of payment, provided that any transfer and/or currency exchange charges must be borne by the payer.
 


SETTLEMENT OR WITHDRAWAL

In the event that the dispute is settled or the Arb-Med Agreement is withdrawn by the Parties before a Partial Award is made that determines all of the matters at issue, the Arbitral Tribunal’s Fees and Expenses incurred prior to that date, including any entitlement to Cancellation Fees and any outstanding balance of the BDT Administration Fee will be deducted from the amount paid as security by the Parties for the costs of the Arb-Med proceeding.

The balance of the security monies will be refunded to the Parties in the proportions in which the security payment was made, unless the Parties agree otherwise and instruct BDT accordingly in writing within five working days of notice of settlement or withdrawal of the Arb-Med Agreement.

In the event that the combined amount of the Fees and Expenses and the BDT Administration Fee are greater than the amount held as security, the Parties must pay the balance within five working days of receipt of notification by BDT of such additional Fees and Expenses.
 


CANCELLATION FEES

In any case where a Party notifies the Arbitral Tribunal in writing that a scheduled conference, Mediation session, inspection, or hearing date is to be vacated, whether or not the dispute between the Parties has been settled, or the conference, Mediation session, inspection, or hearing is adjourned by agreement, or the Application for Arb-Med is withdrawn or terminated by the Parties for any reason whatsoever, and the notice is received by the Arbitral Tribunal between 15 and 11 working days from and including the date of the scheduled conference, Mediation session, inspection, or hearing, the Arbitral Tribunal may charge a Fee in the amount of 50% of the Arbitral Tribunal’s daily charges for the entire period of time set aside for attendances on the same (Cancellation Fee).

If such notice is received ten working days or less from and including the date of the scheduled conference, Mediation session, inspection, or hearing, the Arbitral Tribunal may charge a Cancellation Fee in the amount of 75% of the Arbitral Tribunal’s daily charges for the entire period of time set aside for attendances on the same.

For the purpose of calculating Cancellation Fees, an arbitrator’s daily charges may not exceed eight hours at an all-inclusive hourly rate of NZ$850.00 per hour.
 

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