Arbitration in Denmark: An Overview

For commercial arbitrations, the most common institution is the Danish Institute of Arbitration (DIA). In construction disputes, the Danish Building and Construction Arbitration Board is frequently chosen. These institutions provide a structured framework for arbitration proceedings, ensuring that disputes are resolved efficiently and fairly.

In Danish arbitration, the claimant bears the burden of proof regarding the existence and calculation of its claim. While Danish law does not impose a general duty of disclosure, the arbitral tribunal may order a party to produce documents at the request of another party. The tribunal has broad discretion in determining the requirements for document production. Adverse inferences may be drawn if a party fails to comply with an order.

Danish arbitration allows parties to present various types of evidence, including documents, witness statements, and expert reports. There is no duty to testify or take testimony under oath, and documentary evidence generally carries more weight than witness testimony. Expert evidence is also permitted, with no specific qualifications required for experts, although their independence and qualifications may affect the weight of their testimony.

The Danish Arbitration Act does not contain specific provisions regarding privileged documents. If the parties have not agreed on how to deal with privileged documents, the arbitral tribunal will decide which rules apply.

Danish courts are considered arbitration-friendly and typically do not intervene in arbitration proceedings. Both Danish and foreign arbitral awards can be enforced by the district bailiff's court, following the same procedure as the enforcement of Danish court judgments. Foreign awards are enforceable under the New York Convention, provided they do not conflict with Danish public policy ("ordre public") or involve matters that cannot be arbitrated under Danish law.

The grounds for appealing an arbitral award in Denmark are limited. Appeals are primarily allowed on costs decisions, in cases where the arbitral tribunal has exceeded its authority, where the award covers matters not subject to arbitration, or if the award is incompatible with Danish public policy. An arbitral award can only be set aside if specific conditions are met, such as lack of legal capacity of a party, invalidity of the arbitration agreement, or procedural irregularities. A lawsuit for annulment must be initiated within three months of receiving the award.