FAI Arb FAI Arbitration Rules 2024
FAI Arb
FAI Arbitration Rules 2024
(All amounts in this Appendix are in euros, hereinafter ”EUR”)
1. FILING FEE
1.1 A Filing Fee of EUR 3,000 must be paid upon filing a Request for Arbitration pursuant to Article 6 of the Rules, any counterclaim or setoff claim pursuant to Article 8 of the Rules, any Request for Joinder pursuant to Article 11 of the Rules, and any claim made pursuant to Article 15.2(d) of the Rules.
1.2 The Filing Fee is non-refundable and constitutes a part of the Administrative Fee referred to in Article 3 below. The Filing Fee shall be credited to the respective party’s share of the advance on costs referred to in Article 2 below. If the Board dismisses a Request for Joinder made under Article 11 of the Rules, the Filing Fee paid upon filing the Request for Joinder shall not be credited as a part of the Administrative Fee nor shall it be taken into account in the advance on costs.
1.3 The payment of the Filing Fee shall be made by transfer to the bank account of the Finland Chamber of Commerce.
2. ADVANCE ON COSTS FIXED BY THE INSTITUTE
2.1 The advance on costs fixed by the Institute is intended to cover the fees and expenses referred to in Article 49.2(a)–(d).
2.2 In fixing the advance on costs, the Institute shall take into consideration Tables A and B below. The amount in dispute referred to in the Tables shall be determined in accordance with the following:
(a) The amount in dispute is calculated as the aggregate value of all claims. If secondary or alternative claims have been made in respect to a certain claim, the value of the highest monetary claim shall be taken into account in determining the amount in dispute.
(b) Interest claims shall not be taken into account for the calculation of the amount in dispute. However, when the interest claims exceed the amount claimed as principal, the interest claims alone, instead of the principal amount, shall be taken into account for the calculation of the amount in dispute.
(c) Amounts in currencies other than euro shall be converted into euros at the rate of exchange applicable at the time the Request for Arbitration is filed with the Institute or at the time any new claim, counterclaim, set-off claim or amendment to a claim is filed.
(d) Where the amount in dispute cannot be ascertained, the Institute shall determine the amount in dispute taking into account all relevant circumstances. The Institute may also determine the amount in dispute in other exceptional circumstances.
2.3 Subject to Articles 2.4 and 2.5 below, each party shall pay half of the advance on costs within the time limit set by the Institute.
2.4 Where counterclaims or set-off claims are raised by the respondent, the Institute may fix separate advances on costs for the claims, counterclaims and set-off claims and order each of the parties to pay the advance on costs corresponding to its claims.
2.5 Where claims are made under Articles 11 and 12 of the Rules, the Institute shall fix one or more advances on costs that shall be payable by the parties as decided by the Institute. Where the Institute has previously fixed any advance on costs, any such advance shall be replaced by the advance(s) fixed pursuant to this Article
2.5, and the amount of any advance previously paid by any party will be considered as a partial payment by such party of its share of the advance(s) on costs as fixed by the Institute pursuant to this Article 2.5.
2.6 The Institute may adjust the advance on costs, and order any party to pay further advances on costs, at any time during the proceedings to take into account fluctuations in the amount in dispute, changes in the amount of the estimated expenses of the arbitral tribunal, the evolving complexity of the arbitration, or other relevant circumstances. The arbitral tribunal shall promptly inform the Institute of any changes that may affect the amount of the advance on costs.
2.7 If a party fails to pay its share of the advance on costs, the Institute shall give the other party an opportunity to pay the unpaid share on behalf of the defaulting party within the time limit set by the Institute. If the other party makes such payment, the arbitral tribunal may, at the request of that party, issue a separate award for reimbursement of the payment in accordance with Article 45(a) of the Rules. In the event that any part of the advance on costs remains unpaid, the Institute may terminate the proceedings, treat the claim for which the advance on costs has remained unpaid as withdrawn or, once the case file has been transmitted to the arbitral tribunal, the Institute may direct the tribunal to order the termination of the arbitration or to treat the claim for which the advance on costs has remained unpaid as having been withdrawn.
2.8 Subject to Articles 2.9 and 2.10 below, each party shall pay its share of the advance on costs in cash. The payment shall be made by transfer to the bank account of the Finland Chamber of Commerce.
2.9 If a party’s share of the advance on costs is greater than EUR 250,000, such party may post a bank guarantee for any amount above this sum.
2.10 A party that has already paid in full its share of the advance on costs may pay the unpaid share owed by the defaulting party by posting a bank guarantee.
2.11 The Institute shall establish the terms of the bank guarantees referred to in Articles 2.9 and 2.10.
2.12 The amounts paid as advances on costs do not yield interest for the parties or the arbitrators.
3. ADMINISTRATIVE FEE AND EXPENSES OF THE INSTITUTE
3.1 The Institute shall determine the Administrative Fee referred to in Article 49.2(d) of the Rules in accordance with Table A below. The amount in dispute referred to in Table A shall be determined in accordance with Article 2.2 of this Appendix.
3.2 In exceptional circumstances, the Institute may deviate from the fee amounts set out in Table A or require payment of administrative expenses in addition to the Administrative Fee provided in Table A.
3.3 The payment of the Administrative Fee shall be made by transfer to the bank account of the Finland Chamber of Commerce.
4. FEES AND EXPENSES OF THE ARBITRAL TRIBUNAL
4.1 The arbitral tribunal’s fees shall be determined exclusively by the Institute. Separate fee arrangements between the parties and the arbitral tribunal are contrary to the Rules.
4.2 The Institute shall determine the fee of a sole or presiding arbitrator in accordance with Table B below. The amount in dispute referred to in Table B shall be determined in accordance with Article 2.2 of this Appendix. The Institute may deviate from the fee amounts stated in Table B only in exceptional circumstances.
4.3 When fixing the arbitrator’s fee, in addition to the monetary value of the dispute, the Institute shall consider the complexity of the dispute, the time spent on the case, and the diligence and efficiency of the arbitrator.
4.4 When a case is referred to an arbitral tribunal composed of three arbitrators, the total fees of the tribunal to be determined by the Institute shall normally not exceed two and a half times the fee of the presiding arbitrator.
4.5 As a rule, when a case is referred to an arbitral tribunal composed of three arbitrators, the Institute shall allocate 40–50 per cent of the tribunal’s total fees to the presiding arbitrator and 25–30 per cent to each co-arbitrator. The Institute may, however, apply a different allocation of fees after consulting with the arbitral tribunal.
4.6 Pursuant to Article 49.2(b)–(c) of the Rules, the arbitrators shall receive reimbursement for their reasonable travel, accommodation and other expenses, as well as for costs of expert advice and of other assistance required in connection with the arbitration. The Institute shall determine the reasonableness of such expenses and decide to which extent they will be reimbursed.
5. OTHER PROVISIONS
5.1 If an arbitration is terminated before the rendering of a final award, the Institute shall determine the fees and expenses of the arbitrators and the Administrative Fee and expenses of the Institute at its discretion, taking into account the stage of the proceedings at which the arbitration was terminated, the amount of work done by the arbitrators and the Institute, and other relevant circumstances.
5.2 Where an arbitrator is replaced pursuant to Article 24 of the Rules, the Institute shall determine the fee and expenses due to the arbitrator who has been replaced, taking into account the amount of work done, the reason for the replacement, and other relevant circumstances.
5.3 In case of a request for the correction or interpretation of an award under Article 47 of the Rules, or for the making of an additional award under Article 48, the Institute shall decide whether any costs referred to in Article 49.2(a)(d) will be charged to the parties. The Institute may fix a supplementary advance on costs, to be paid by the parties, to cover any additional fees and expenses of the arbitral tribunal and any additional administrative expenses of the Institute.
5.4 The provisions of Article 5.3 above also apply if a competent judicial authority seised with an action to set aside an arbitral award has remitted the award to an arbitral tribunal to eliminate the ground for setting it aside.
5.5 The Institute may set a fee payable for the appointment of an arbitrator or arbitrators to arbitrations not subject to the Rules or the Expedited Rules. The fee is non-refundable.
5.6 A party making or receiving any payments concerning the costs of the arbitration shall be liable for all bank charges and other fees incurred in connection with these payments.
5.7 The Institute may issue guidelines to supplement the provisions of this Appendix with regard to the payment of the arbitrators’ fees and expenses as well as the Administrative Fee and expenses of the Institute.
5.8 This Appendix shall not apply to the appointment of an Emergency Arbitrator pursuant to Article 38.5 and Appendix III of the Rules.
ADMINISTRATIVE FEE
| Amount in dispute (EUR) | Administrative Fee (EUR) |
|---|---|
| 0 – 200,000 | 3,000 + 1.74% of amount over 25,000 with a maximum Administrative Fee of 6,000 |
| 200,001 – 500,000 | 6,000 + 2.17% of amount over 200,000 with a maximum Administrative Fee of 12,500 |
| 500,001 – 1,000,000 | 12,500 + 1.30% of amount over 500,000 with a maximum Administrative Fee of 19,000 |
| 1,000,001 – 2,000,000 | 19,000 + 0.50% of amount over 1,000,000 with a maximum Administrative Fee of 24,000 |
| 2,000,001 – 5,000,000 | 24,000 + 0.20% of amount over 2,000,000 with a maximum Administrative Fee of 30,000 |
| 5,000,001 – 10,000,000 | 30,000 + 0.16% of amount over 5,000,000 with a maximum Administrative Fee of 38,000 |
| 10,000,001 – 30,000,000 | 38,000 + 0.04% of amount over 10,000,000 with a maximum Administrative Fee of 45,000 |
| 30,000,001 – 50,000,000 | 45,000 + 0.04% of amount over 30,000,000 with a maximum Administrative Fee of 52,000 |
| 50,000,001 – 75,000,000 | 52,000 + 0.03% of amount over 50,000,000 with a maximum Administrative Fee of 58,000 |
| 75,000,001 – 100,000,000 | 58,000 + 0.02% of amount over 75,000,000 with a maximum Administrative Fee of 63,000 |
| Over 100,000,000 | 63,000 + 0.01% of amount over 100,000,000 with a maximum Administrative Fee of 70,000 |
The Administrative Fee is not subject to VAT.
ARBITRATOR’S FEE
Fee of the sole or presiding arbitrator (EUR)
| Amount in dispute (EUR) | Minimum | Maximum |
|---|---|---|
| 0 – 200,000 | 6,000 | 25,000 |
| 200,001 – 500,000 | 10,000 + 2.00% of amount over 200,000 | 25,000 + 5.00% of amount over 200,000 |
| 500,001 – 1,000,000 | 16,000 + 1.80% of amount over 500,000 | 40,000 + 3.00% of amount over 500,000 |
| 1,000,001 – 2,000,000 | 25,000 + 0.50% of amount over 1,000,000 | 55,000 + 2.90% of amount over 1,000,000 |
| 2,000,001 – 5,000,000 | 30,000 + 0.33% of amount over 2,000,000 | 84,000 + 1.60% of amount over 2,000,000 |
| 5,000,001 – 10,000,000 | 40,000 + 0.30% of amount over 5,000,000 | 132,000 + 0.60% of amount over 5,000,000 |
| 10,000,001 – 30,000,000 | 55,000 + 0.05% of amount over 10,000,000 | 162,000 + 0.22% of amount over 10,000,000 |
| 30,000,001 – 50,000,000 | 65,000 + 0.05% of amount over 30,000,000 | 205,000 + 0.23% of amount over 30,000,000 |
| 50,000,001 – 75,000,000 | 75,000 + 0.06% of amount over 50,000,000 | 250,000 + 0.16% of amount over 50,000,000 |
| 75,000,001 – 100,000,000 | 90,000 + 0.04% of amount over 75,000,000 | 290,000 + 0.04% of amount over 75,000,000 |
| Over 100,000,000 | To be determined by the Board | To be determined by the Board |
The fee amounts mentioned in the table do not include VAT to be added to the fee of an arbitrator.
Import: