Two Examples on Costs in a Mediation Case

Example 1

The total amount in dispute is DKK 750,000.

After the mediation has been commenced at the Danish Institute of Arbitration (“DIA”) the parties decides to jointly appoint the mediator and at the same agree with the mediator on a fixed fee of DKK 25,000 + VAT (after approval of the Chairman’s Committee of the DIA), cf. Article 4(2), in Appendix 1 for Rules on Mediation (2015).

The costs for the mediation thus amounts to a total of DKK 56,000;

• Registration fee DKK 9,700
• Administrative charge DKK 11,050
• The mediator’s fee DKK 31,250 (of which DKK 6,250 is VAT)
• Expenses for catering etc. during the mediation meeting, approximately DKK 3,000.
• Costs of renting DIA premises DKK 4,000 (click here to read more)

If mediation can’t be completed, for example if the other Party doesn’t accept the mediation or if the mediator in the beginning of the mediation meeting can conclude that the mediation has no prospect of succeeding, the Chairman’s Committee of the DIA shall fix a smaller administrative charge, cf. Article 3(5) in Appendix 1, Rules on Mediation.

If the Parties´ dispute hasn’t been solved when mediation has ended, and where an arbitration is commenced immediately thereafter at the DIA, the administrative charge of DKK 11,050 and registration fee of DKK 9,700 shall be credited to the costs related to the arbitration proceedings, cf. Articles 2 and 3(3) in Appendix 1, Rules on Mediation.

Example 2

The total amount in dispute is DKK 8,000,000.

The Mediator’s hourly rate is DKK 2,500 + VAT. The mediator uses 6 hours on the preparation of the case and 8 hours of conducting the meeting, which amounts to 14 hours in total.

The costs for the mediation thus amounts to a total of DKK 99,000;

• Registration fee DKK 9,700
• Administrative fee DKK 41,400
• The mediator’s fee DKK 43,750 (of which DKK 8,750 is VAT)
• Expenses for catering etc. during the meeting, approximately DKK 3,000
• Costs of renting DIA premises DKK 4,000 (click here to read more)

If mediation can’t be completed, for example if the other Party doesn’t accept the mediation or if the mediator in the beginning of the mediation meeting can conclude that the mediation has no prospect of succeeding, the Chairman’s Committee of the DIA shall fix a smaller administrative charge, cf. Article 3(5) in Appendix 1, Rules on Mediation.

If the Parties´ dispute hasn’t been solved when mediation has ended, and where an arbitration is commenced immediately thereafter at the DIA, the administrative charge of DKK 41,400 and registration fee of DKK 9,700 shall be credited to the costs related to the arbitration proceedings, cf. Articles 2 and 3(3) in Appendix 1, Rules on Mediation.

Appendix 1, Rules on Mediation (2015), on Mediator’s Fee and Other Costs

Adopted by the Board of the Danish Institute of Arbitration and in force as from 1 June 2015

Introduction

Article 1

(1) The Board has fixed the following provisions for the registration fee, calculation of administrative charge to the DIA and mediator’s fee. The scales are effective as from 1 June 2015 in respect of all mediations commenced on or after such date, irrespective of the version of the rules of the DIA applying to such mediation.

Registration Fee

Article 2

(1) The registration fee amounts to EUR 1,300.00. In cases which are not solved by mediation, and where an arbitration is commenced immediately thereafter at the DIA, the registration fee paid shall be credited as the registration fee for the arbitration proceedings.

Administrative Charge

Article 3

(1) The administrative charge shall be fixed by the Chairman’s Committee.

(2) The administrative charge shall be fixed to half the rate of the scales for calculating administrative charge to the DIA in arbitration proceedings, cf. Article 2 of Appendix 1 to the DIA’s Rules of Arbitration Procedure.

(3) In cases, which are not solved by mediation, and where an arbitration is commenced immediately thereafter at the DIA, the administrative charge paid shall be credited as the administrative charge for the arbitration proceedings.

(4) Where the amount in dispute cannot be determined on the basis of the claim made, the monetary value of the case shall be fixed at the discretion of the Chairman’s Committee.

(5) Where a case is not completed, e.g. because a party does not accept the Request for Mediation, cf. Article 3 (8) and Article 4, the Chairman’s Committee shall fix a reasonable administrative charge, taking into account the work the DIA has put into the case and any other circumstances.

Mediator’s Fee and Expenses

Article 4

(1) Unless agreed otherwise between the parties and the mediator, the fee of the mediator is fixed on the basis of the time reasonably spent during the mediation. The fee shall be decided on the basis of an hourly rate decided by the Chairman’s Committee in connection with the confirmation of the mediator.

(2) If the parties and the mediator agree, the Chairman’s Committee can fix the mediator’s fee to a fixed price. The fixed price shall be reasonable and determined on the basis of the complexity of the case, if the mediator has conducted the mediation in an efficient and cost-conscious manner, time spent and other relevant circumstances. Where a case is not completed as originally provided, the Chairman’s Committee shall at its discretion fix a reasonable fee taking into consideration the work performed by the mediator and any other circumstances.

(3) The mediator’s reasonable expenses related to the case are fixed by the Chairman’s Committee.

(4) Separate fee arrangements between the parties and the mediator shall be considered contrary to the Rules.

(5) Amounts payable to the mediator do not include any possible value added tax (VAT) or other taxes or charges that may be and imposts applicable to the fee. The parties have a duty to pay any such taxes or charges; however, the recovery of any such charges or taxes is a matter solely between the mediator and the parties.