Where clause 1 of Schedule 2 applies, it provides a quick and effective means of securing the appointment of an arbitral tribunal in the face of delay or obfuscation by another party to the arbitration agreement. Note that article 11 of Schedule 1 applies to an international arbitration unless the parties have expressly opted into clause 1 of Schedule 2 of the Act. Under section 6(2) of the Act, Schedule 2 of the Act applies to an international arbitration only if the parties so agree. How can you avoid the problem altogether? the answer is really quite simple! All that is required is for you to ensure that your contracts have effective arbitration clauses included in them – not the outdated, complicated, multi-tiered, and often unenforceable dispute resolution/arbitration clauses we frequently see still being used today. NZDRC and NZIAC have developed comprehensive suites of Rules for Commercial Arbitration 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. The Rules provide both a framework and detailed provisions to ensure the efficient and cost effective resolution of commercial disputes by arbitration. The Rules are set out in a manner designed to facilitate ease of use and may be adopted by agreement in writing at any time before or after a dispute has arisen.
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 that provide a proportionate response to the amounts in dispute and the complexity of the issues involved. The primary advantages of arbitration under NZDRC’s and NZIAC’s Arbitration Rules include: • one simple model clause – the rules act as a default filter for expedited procedures according to the value of the dispute • a sole arbitrator will be appointed unless the parties agree otherwise • lower value claims (claims under NZ$2.5M) are dealt with under 45, 60 and 90 day expedited Rules by default in domestic arbitrations and 60, 90 and 120 day expedited rules by default in international arbitrations – claims under NZ$250K will dealt with on the documents by default • no emergency arbitrator – instead, where urgent interim relief sought, a sole arbitrator or Presiding Arbitrator will be appointed by NZDRC/NZIAC within one working day to determine any application for urgent interim relief