COVID-19 Commercial Lease Disputes
NZDRC offers a special fixed fee service for disputes between parties to a Commercial Lease agreement impacted by the Government restrictions to combat COVID-19.
The Government funded arbitration and mediation scheme came to an end at the end of June 2021. For this reason, NZDRC launched a special fixed fee arbitration and mediation service to assist parties to commercial leases who find themselves in dispute about the payment of rent and outgoings due to the COVID-19 lockdowns. This fixed fee service is streamlined to ensure parties can access a prompt and cost-effective process.
On this page
Overview of services
NZDRC offers a special fixed fee service for disputes between parties to a Commercial Lease agreement impacted by the Government restrictions to combat COVID - 19.
Process options
With both arbitration and mediation processes available, there is an option to best suit your needs.
FAQ
Explore our FAQ section for quick insights and to find answers to common questions.
Overview of services
NZDRC’s fixed fee arbitration and mediation service was successfully implemented to support parties in commercial lease disputes over rent and outgoing payments due to COVID-19 lockdowns. This service, which was introduced as a special initiative to replace the government-funded scheme that concluded in June 2021, has proven to be an affordable and efficient means of achieving prompt resolution, thereby making dispute resolution more accessible. In addition to this established offering, we continue to provide our existing services, including arbitration, mediation, and expert determination for other disputes related to commercial leases.
Process options
The process options for our fixed fee COVID-19 commercial lease scheme are arbitration and mediation.
Arbitration
Arbitration is a legal process governed by the Arbitration Act 1996 under which an arbitrator decides matters in dispute according to the law. The arbitrator’s decision is binding on the parties.
To proceed under this fixed fee service, the parties will need to agree to arbitrate under the NZDRC COVID-19 Arbitration Rules (fixed fee scheme). Parties can do this by completing an Agreement to Arbitrate, which our Registry team can assist you with.
These Rules provide for a ‘documents only’ arbitration process. In other words, the parties will exchange their submissions and evidence in writing, and there will be no hearing. The process is specifically designed to result in a decision within 45 working days.
The cost of the arbitration is fixed as follows (all prices include GST):
| Lease under which rental (not including OPEX) of $100k is payable per annum | $3,000 |
| Lease under which rental (not including OPEX) of between $100k and $200k is payable per annum | $4,500 |
| Lease under which rental (not including OPEX) of $200k or more is payable per annum | $6,000 |
Please contact us for any further information.
Mediation
Mediation is a consensual, confidential, and informal negotiation process in which parties to a dispute use the services of a skilled and independent mediator to assist them to negotiate a mutually acceptable settlement of that dispute which meets their interests and needs and which need not conform to strict legal rights or general community standards.
To proceed under this fixed fee service, the parties will need to agree to mediate under the NZDRC COVID-19 Mediation Rules (fixed-fee scheme). Parties can do this by completing an Agreement to Mediate, which our Registry team can assist you with.
The mediation itself will take place by video conference and will be limited to a half day (up to four hours).
The fee for this service is fixed at $3,000 (including GST). This fee is applicable for mediation between two parties. Please contact us for further information and pricing if your dispute involves more than two parties.
FAQ
Find quick insights and helpful information on a variety of topics related to COVID – 19 commercial lease disputes.
What is the NZDRC's fixed fee arbitration and mediation service?
NZDRC’s fixed fee arbitration and mediation service was implemented to support parties in commercial lease disputes over rent and outgoing payments due to COVID-19 lockdowns. This service is an affordable and efficient means of achieving prompt resolution, making dispute resolution more accessible.
Why would I use the NZDRC's fixed fee arbitration service?
NZDRC’s fixed fee arbitration service is a cost-effective and efficient method for resolving disputes. With this service, you can expect a legally binding decision within 45 working days. It is especially useful when parties are unable to reach an agreement on their own and need a third party to make a decision.
Why would I use the NZDRC's fixed fee mediation service?
NZDRC’s fixed fee mediation service provides a confidential and informal platform for parties to negotiate and reach a mutually acceptable settlement. This service is beneficial when parties are willing to collaborate and find a solution together, with the help of a skilled mediator.
When should I choose arbitration over mediation, or mediation over arbitration ?
You should choose arbitration over mediation when you want a definitive, legally binding outcome. Arbitration is also advisable when the parties have a high level of conflict or are unwilling or unable to negotiate with each other directly.
Mediation is a good choice when both parties are willing to work together to resolve their dispute and are open to compromise. It is also suitable when preserving the relationship between the parties is important, as the mediation process is less adversarial than arbitration.
Take the first step towards resolving your COVID - 19 commercial lease dispute today
Whether you need a legally binding decision through our arbitration process, or prefer a collaborative environment for negotiation with our mediation service, we’re here to help. Don’t delay – Contact us today to resolve your disputes quickly, cost-effectively, and professionally.
Get in touch
Contact our team today to see how we can help