Institutional arbitration under the NZDRC Arbitration Rules
This comprehensive service is fully administered by NZDRC’s highly experienced secretariat from submission of the notice of arbitration to the issuance of the final award.
NZDRC has developed a suite of Arbitration Rules that are robust and certain, yet innovative in their commercial commonsense approach to challenging issues such as appointment, urgent interim relief, expedited procedures, summary procedures for early dismissal of claims and defences, joinder, consolidation, multiple contracts, confidentiality, representation, mediation, arbitral secretaries, expert evidence, appeals, and costs.
NZDRC Arbitration Rules
The Rules are intended to give parties the widest choice and capacity to adopt fully administered procedures that are fair, prompt, and cost effective, and which provide a proportionate response to the amounts in dispute and the complexity of the issues involved. They provide a framework and detailed provisions to ensure the efficient and cost effective resolution of disputes and are set out in a manner that is easy to use.
This service is primarily directed to parties to commercial contracts who wish to be able to refer any future disputes or differences that may arise in relation to those contracts, to arbitration, and who want procedural, time and cost certainty in the event of such disputes arising. That is achieved by including NZDRC’s Arbitration Model Clause in commercial contracts at the drafting stage.
However, NZDRC’s Arbitration Rules may be adopted by agreement in writing at any time before or after a dispute has arisen and parties to existing disputes will often agree to refer such disputes to arbitration governed by NZDRC’s Arbitration Rules so that they can be assured of that level of procedural, time and cost certainty that is not always available when simply arbitrating under the provisions of the Arbitration Act.
Institutional oversight
NZDRC considers itself to be a ‘light touch’ institution. It has powers under the Rules to facilitate the efficient and effective initiation and running of an arbitration where necessary and appropriate, but otherwise, while it maintains administrative oversight and support throughout, the arbitral tribunal has the full conduct of the arbitration in all respects from its constitution until it renders its final award.
NZDRC’s comprehensive administrative functions and duties in relation to arbitrations undertaken under its suite of Arbitration Rules include, among other things:
- developing and maintaining a suite of Arbitration Rules that reflect domestic and international best practice;
- maintaining and operating a Registry service through the offices of its executive and Registrars and its website;
- receiving and processing applications for arbitration;
- selection and appointment of the arbitral tribunal including, undertaking conflict and availability checks of candidates for appointment to the arbitral tribunal;
- processing applications for urgent interim relief and appointing a sole arbitrator or presiding arbitrator under urgency;
- determining any challenges to the arbitral tribunal;
- in appropriate circumstances, revoking the appointment of an arbitrator and appointing a replacement arbitrator;
- administering applications for joinder;
- administering applications for consolidation, including deciding applications for consolidation prior to the constitution of the arbitral tribunal;
- administering applications for interim measures;
- administering applications for mediation and appointment of a mediator that is not an arbitrator where parties agree to mediate during the course of an arbitration;
- case management which includes liaising with arbitrators, parties and their authorised representatives on proper delivery of notices, monitoring schedules and timelines for submissions, arranging hearing facilities and all other matters which facilitate the smooth conduct of the arbitration;
- financial management of the arbitration including administering payments in relation to the fees and expenses of the arbitral tribunal and any arbitral secretary, and providing accounting to the parties and the arbitral tribunal;
- determining any exceptional fee challenge that might arise; and
- scrutiny and issuance of awards.
In ad hoc arbitration undertaken under NZDRC’s aegis, the arbitral tribunal, rather than NZDRC’s Registry staff, would undertake these functions and duties save for making any appointments, scrutiny and issuance of awards, and financial management of the arbitration.
Rules comparison
The table below provides a brief summary of the key features and differences between the NZDRC arbitration processes available.
Standard Rules | ECA45 Rules | ECA60 Rules | ECA90 Rules | Which Rules by default? | Claims greater than or equal to NZ$5M | Claims less than NZ$500,000, or for declaratory relief only | Claims greater than or equal to NZ$500,000 and less than NZ$2.5M | Claims greater than or equal to NZ$2.5M and less than NZ$5M*
*or where the Arbitral Tribunal determines the matter to be of exceptional urgency (Rule 1.4 Standard Rules) |
|---|---|---|---|---|
Can a Claimant initiate a single Arbitration in relation to more than one contract? | Yes | Yes | Yes | Yes |
Is the fixed fee arbitration service available? | No | Yes | No | No |
Are the Arbitral Tribunal’s fees capped? | Yes | Yes | Yes | Yes |
How long does the process take from appointment to the Award on all substantive matters? | Within such time as agreed by the parties or determined by the arbitral tribunal. | The Objective is to make a final award in respect of the substantive issues within 45 working days. | The Objective is to make a final award in respect of the substantive issues within 60 working days. | The Objective is to make a final award in respect of the substantive issues within 90 working days.
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Can a Party apply for an Interim Measure/Preliminary Order? | Yes | Yes | Yes | Yes |
Can a Party apply for an Interim Measure on an urgent basis? | Yes | Yes | Yes | Yes |
Can a Party apply to join another party? | Yes | No | No | No |
Can a Party apply to consolidate more than one Arbitration proceeding? | Yes | No | No | No |
Is there a hearing? | Yes, unless agreed by the parties, there is a hearing at the Arbitral Tribunal’s discretion. | No. Although the Arbitral Tribunal may exercise its discretion to convene a conference if necessary. | Unless agreed by the parties, at the Arbitral Tribunal’s discretion but limited to 3 days. | Unless agreed by the parties, at the Arbitral Tribunal’s discretion but limited to 5 days.
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Is there provision for a visit or inspection of the relevant location, subject matter, property, goods at issue? | Yes, at the Arbitral Tribunal’s discretion. | Yes, at the Arbitral Tribunal’s discretion. | Yes, at the Arbitral Tribunal’s discretion. | Yes, at the Arbitral Tribunal’s discretion. |
Are the Arbitral Tribunal’s Awards subject to scrutiny by the NZDRC Registry before being issued? | Yes | Yes | Yes | Yes |
Is there a right of appeal on a question of law? | On an ‘opt in’ basis only. The Parties may agree that any appeal on a question of law may be made to the AMINZ Arbitration Appeals Tribunal. | No | No | No |
Related resources
Find more resources related to arbitration below, including institutional arbitration under NZDRC’s arbitration rules, arbitration under other institutional rules, and abitraion guides and resources.
Ad hoc arbitration
Ad hoc arbitration is arbitration conducted under the Arbitration Act 1996 by the arbitral tribunal with only limited institutional oversight and support provided by NZDRC.
Arbitration under other institutional rules
NZDRC also provides Registry and administrative services in relation to arbitrations conducted under the rules of other arbitral institutions.
Arbitration guides and resources
Access our suite of arbitration-specific guides and resources.
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