Expert determination

Arbitration

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The primary purpose of expert determination is to obtain a provisionally binding decision on a specific factual issue. It is particularly useful if the decision on the disputed factual issue enables an amicable settlement of a larger dispute. Expert determination is often used for determining rent payments, valuing properties, the sale and purchase of companies, and many other assessments of value, turnover or profit.

Parties to a dispute jointly select an independent arbitration expert (multiple arbitration experts are also possible), who enjoys the trust of both parties to resolve the disputed issue. The decision of the arbitration expert is provisionally binding. However, a court or an arbitral tribunal can set aside or modify this decision.

Parties can already agree on expert determination proceedings as a method of dispute resolution at the time of the conclusion of a contract. Alternatively, they can also agree on expert determination proceedings after a dispute has arisen.

The DIS recommends combining expert determination proceedings with arbitration. This clause should be included in contracts.

Advantages of Expert Determination Proceedings

Expert determination proceedings offer many advantages:

  • A confidential, flexible and cost-efficient dispute resolution method for parties wishing to obtain a provisionally binding decision on a factual issue within a short period of time.
  • Parties can select an arbitration expert with the necessary professional skills. The DIS may propose names of potential arbitration experts to any party upon request.
  • If the parties are unable to reach an agreement, they can still turn to arbitration or state court proceedings to resolve their dispute.

DIS Expert Determination Proceedings

The party wishing to initiate expert determination proceedings (applicant) shall submit a written request pursuant to the DIS Expert Determination Rules with the DIS Main Secretariat. A copy of the request shall be sent to the other party. Upon filing the request, the applicant shall pay the DIS procedural fee. The expert determination proceedings commence once the DIS Main Secretariat has received the request.

The parties may jointly nominate a sole arbitration expert. In case of three arbitration experts, each party appoints one arbitration expert and the two experts jointly nominate the chairman. If the parties fail to agree on a sole arbitration expert or the two arbitration experts appointed by the parties fail to nominate the chairman, each party may request the nomination of an arbitration expert by the Appointing Committee of the DIS. The DIS may also propose names of potential arbitration experts to any party upon request.

The expert determination proceedings are meant to be completed no later than six months after commencement of the proceedings. However, the parties can agree to extend the time limits for the submission of pleadings and the duration of the proceedings.

The expert determination proceedings are terminated once the parties have received the arbitration expert’s decision. If the arbitration expert has issued a partial decision, the proceedings are terminated once the parties have received the final decision. The decision shall be justified in writing and it is provisionally binding on the parties until it is set aside or amended by a decision of a state court or an arbitral tribunal.

Costs of Expert Determination Proceedings

The costs of expert determination proceedings are based on the Table of Costs for DIS Expert Determination Proceedings.

The DIS procedural fee is €500. The fee for the nomination of an arbitration expert by the DIS is €250 per arbitration expert. The fee for the decision on the confirmation or termination of the mandate of an arbitration expert is €250. The hourly rate of an arbitration expert is €300. The fees are subject to the applicable VAT.

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