Lex Mundi Global Arbitration Institutions Guide |
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Netherlands |
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(Europe)
Firm
Houthoff
Contributors
Dirk Knottenbelt |
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Name of Arbitral Institution; with abbreviation, if any. | Netherlands Arbitration Institute ("NAI") |
Where is the seat of the Arbitral Institution? | The registered seat of the NAI is in Rotterdam, the Netherlands. |
Is there an umbrella organization for the Arbitral Institution? | There is no umbrella organization fro the NAI |
How is the Arbitral Institution structured? | The Netherlands Arbitration Institute is an independent foundation. The NAI Executive Board consists of people from the business community, the legal profession and science who have extensive experience in the fields of arbitration, binding advice and mediation. The NAI also has an Advisory Board. The NAI Secretariat administers arbitration, binding advice proceedings and mediation. |
Is there a compulsory list of arbitrators that parties are required to choose from? | There is no compulsory list of arbitrators that the parties are required to choose from. |
Can the place of arbitration freely be chosen by the parties? Is there a default place of arbitration? | The NAI Rules allow the parties to freely chose the place of arbitration. There is no default place of arbitration; should the parties not have agreed on a place for arbitration, the tribunal will determine the place of arbitration (Article 21(7) NaI Rules). |
What is the amount of the registration fee? | The NAI Rules do not provide for a registration fee, but the NAI will charge administration costs. |
What is the average cost of an arbitration in the following cases? 1 arbitrator, amount in dispute = $1 million | €12,500.00 |
What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $10 million | €48,150.00 |
What is the average cost of an arbitration in the following cases? 3 arbitrators, amount in dispute = $100 million | €112,150.00 |
Who pays advances on costs? What happens in the event of default? | The claimant shall owe the deposit. If the respondent has submitted a counterclaim, the administrator may also require a deposit from the respondent (Article 55(1) NAI Rules). If the NAI does not receive the deposit required from a party within 14 days after the second reminder from the administrator, that party shall be deemed to have withdrawn its claim or counterclaim (Article 55(6) NAI Rules. |
Does the Arbitral Institution have formalistic procedures (e.g. terms of reference) that must be complied with? If so, which ones? | The NAI does not have formalistic procedures that the parties must comply with. The NAI Rules provide for a list procedure to appoint the arbitrators, either in case the parties have agreed to use this procedure or in case the parties have not agreed on a method of appointment (Articles 13 and 14 NAI Rules). |
Which languages can be used for communication with the Arbitral Institution? | The NAI Rules do not provide for the language to communicate with the arbitrators; it is to be agreed upon between the parties and the arbitrators or to be determined by the arbitrators. |
Who is the main point of contact for the parties within the Arbitral Institution? | The Administrator (Article 1(a) NAI Rules). |
Are there restrictions on the language that the arbitration may be conducted in? | The NAI Rules do not contain a restriction on the language that the arbitration may be conducted in. |
Who appoints substitute arbitrators? | Unless the parties have agreed to another manner of replacement, an arbitrator who has been released from his mandate or an arbitral tribunal that has been released from its mandate for any reason whatsoever shall be replaced pursuant to the rules applicable to the original appointment. The same shall apply in the event of the death of an arbitrator (Article 18(1) NAI Rules). |
Are there specific regulations for multi-party arbitrations or joinders to the proceedings? | Article 15 of the NAI Rules provides for the appointment of arbitrators in the event of multiple claimants and/or respondents. Article 37 of the NAI Rules provides for joinder and intervention. |
Are oral hearings compulsory? | Oral hearings are not compulsory. Article 25(1) of the NAI Rules provides that the arbitral tribunal shall give the parties the opportunity to explain their case at an oral hearing unless the parties waive that opportunity. |
What are common evidence-taking practices? | The common practice for evidence-taking is based on documentary evidence and witness and expert hearings. Article 26(1) of the NAI Rules provides that the arbitral tribunal shall be free to determine the rules of evidence, the admissibility of evidence, the division of the burden of proof and the assessment of evidence unless the parties have agreed otherwise. |
What is the average duration of arbitration proceedings? | The average duration is approximately 12-18 months |
What is the timeframe for rendering the award? | Article 40 of the NAI Rules provides that at the end of the hearing, the arbitral tribunal shall communicate to the parties at which time the arbitral tribunal will make its award. If the parties decided not to hold a hearing, the notice shall be sent after the presentation of the last statement. The arbitral tribunal shall be authorized to extend the time limit one or more times if necessary. In any event, the arbitral tribunal shall decide expeditiously. |
Are extensions to time limits permissible? | The arbitral tribunal shall determine the manner in which and the time limits within which the proceedings will be conducted, with due observance of any arrangements between the parties in that regard and the provisions of these Rules and having regard to the circumstances of the arbitration (Article 21(1)). Consequently, if agreed to by the tribunal, extensions to time limits are permissible. |
Can the arbitral tribunal impose interim measures? Is there a competing competency of the ordinary courts with regard to interim measures? | During pending arbitral proceedings on the merits, the arbitral tribunal may, at the request of any of the parties and with due observance of the provisions of this article, grant provisional relief related to the claim or counterclaim as presented (Article 35(1) NAI Rules). Dutch arbitration law does not allow arbitrators to impose certain interim measures, such as the attachments of assets. Such interim measures remain in the exclusive jurisdiction of the court. |
Do the institutional rules provide for an emergency arbitrator? | The NAI Rules provide for summary arbitration proceedings (Article 36 NAI Rules). |
Are there any specific regulations for expedited proceedings? If so, is there a deadline for rendering such an award? | The summary arbitral proceedings are distinct from accelerated proceedings. Proceedings of this type – called “expedited proceedings” in arbitration – do result in a decision regarding the dispute itself, albeit within a short period of time. In urgent cases, a party may ask the arbitral tribunal to establish appropriate rules of procedure. The parties may also agree to reduced time-limits themselves. As summary arbitral proceedings significantly and predominantly accommodate the need for an expedited decision or relief, the Arbitration Rules have no separate provisions governing “expedited arbitration”. |
Are arbitral awards submitted for scrutiny? If so, to whom? | The NAI Rules do not provide for awards being scrutinized. |
Do costs necessarily follow the event? | In principle, the unsuccessful party will be ordered to pay the costs of the arbitration. If both parties are partially successful, the arbitral tribunal may divide all or part of the costs of the arbitration (Article 57(2) NAI Rules). |
Can an arbitral award be annulled in your jurisdiction? If yes, do the reasons for annulment in principle correspond to the reasons for denial of enforcement according to the New York Convention? | The Dutch Code of Civil procedure provides for the possibility to annul an arbitral award on one or more of the following grounds: (a) the non-existence of a valid arbitration agreement; (b) the arbitral tribunal was composed in violation of the applicable rules; (c) the arbitral tribunal did not comply with its mandate; (d) the award was not signed or did not contain reasons in accordance with the law; (e) the award, or the manner in which it was made, violates public policy. |
Link to institutional rules | |
Link to model clause |
Lex Mundi Global Arbitration Institutions Guide
Netherlands Arbitration Institute ("NAI")
The registered seat of the NAI is in Rotterdam, the Netherlands.
There is no umbrella organization fro the NAI
The Netherlands Arbitration Institute is an independent foundation. The NAI Executive Board consists of people from the business community, the legal profession and science who have extensive experience in the fields of arbitration, binding advice and mediation. The NAI also has an Advisory Board. The NAI Secretariat administers arbitration, binding advice proceedings and mediation.
There is no compulsory list of arbitrators that the parties are required to choose from.
The NAI Rules allow the parties to freely chose the place of arbitration. There is no default place of arbitration; should the parties not have agreed on a place for arbitration, the tribunal will determine the place of arbitration (Article 21(7) NaI Rules).
The NAI Rules do not provide for a registration fee, but the NAI will charge administration costs.
€12,500.00
€48,150.00
€112,150.00
The claimant shall owe the deposit. If the respondent has submitted a counterclaim, the administrator may also require a deposit from the respondent (Article 55(1) NAI Rules). If the NAI does not receive the deposit required from a party within 14 days after the second reminder from the administrator, that party shall be deemed to have withdrawn its claim or counterclaim (Article 55(6) NAI Rules.
The NAI does not have formalistic procedures that the parties must comply with. The NAI Rules provide for a list procedure to appoint the arbitrators, either in case the parties have agreed to use this procedure or in case the parties have not agreed on a method of appointment (Articles 13 and 14 NAI Rules).
The NAI Rules do not provide for the language to communicate with the arbitrators; it is to be agreed upon between the parties and the arbitrators or to be determined by the arbitrators.
The Administrator (Article 1(a) NAI Rules).
The NAI Rules do not contain a restriction on the language that the arbitration may be conducted in.
Unless the parties have agreed to another manner of replacement, an arbitrator who has been released from his mandate or an arbitral tribunal that has been released from its mandate for any reason whatsoever shall be replaced pursuant to the rules applicable to the original appointment. The same shall apply in the event of the death of an arbitrator (Article 18(1) NAI Rules).
Article 15 of the NAI Rules provides for the appointment of arbitrators in the event of multiple claimants and/or respondents. Article 37 of the NAI Rules provides for joinder and intervention.
Oral hearings are not compulsory. Article 25(1) of the NAI Rules provides that the arbitral tribunal shall give the parties the opportunity to explain their case at an oral hearing unless the parties waive that opportunity.
The common practice for evidence-taking is based on documentary evidence and witness and expert hearings. Article 26(1) of the NAI Rules provides that the arbitral tribunal shall be free to determine the rules of evidence, the admissibility of evidence, the division of the burden of proof and the assessment of evidence unless the parties have agreed otherwise.
The average duration is approximately 12-18 months
Article 40 of the NAI Rules provides that at the end of the hearing, the arbitral tribunal shall communicate to the parties at which time the arbitral tribunal will make its award. If the parties decided not to hold a hearing, the notice shall be sent after the presentation of the last statement. The arbitral tribunal shall be authorized to extend the time limit one or more times if necessary. In any event, the arbitral tribunal shall decide expeditiously.
The arbitral tribunal shall determine the manner in which and the time limits within which the proceedings will be conducted, with due observance of any arrangements between the parties in that regard and the provisions of these Rules and having regard to the circumstances of the arbitration (Article 21(1)). Consequently, if agreed to by the tribunal, extensions to time limits are permissible.
During pending arbitral proceedings on the merits, the arbitral tribunal may, at the request of any of the parties and with due observance of the provisions of this article, grant provisional relief related to the claim or counterclaim as presented (Article 35(1) NAI Rules). Dutch arbitration law does not allow arbitrators to impose certain interim measures, such as the attachments of assets. Such interim measures remain in the exclusive jurisdiction of the court.
The NAI Rules provide for summary arbitration proceedings (Article 36 NAI Rules).
The summary arbitral proceedings are distinct from accelerated proceedings. Proceedings of this type – called “expedited proceedings” in arbitration – do result in a decision regarding the dispute itself, albeit within a short period of time. In urgent cases, a party may ask the arbitral tribunal to establish appropriate rules of procedure. The parties may also agree to reduced time-limits themselves. As summary arbitral proceedings significantly and predominantly accommodate the need for an expedited decision or relief, the Arbitration Rules have no separate provisions governing “expedited arbitration”.
The NAI Rules do not provide for awards being scrutinized.
In principle, the unsuccessful party will be ordered to pay the costs of the arbitration. If both parties are partially successful, the arbitral tribunal may divide all or part of the costs of the arbitration (Article 57(2) NAI Rules).
The Dutch Code of Civil procedure provides for the possibility to annul an arbitral award on one or more of the following grounds:
(a) the non-existence of a valid arbitration agreement;
(b) the arbitral tribunal was composed in violation of the applicable rules;
(c) the arbitral tribunal did not comply with its mandate;
(d) the award was not signed or did not contain reasons in accordance with the law;
(e) the award, or the manner in which it was made, violates public policy.