Danish Institute of Arbitration ("DIA")
A concise overview of the key procedural features, advantages, disadvantages, and practical considerations involved in arbitrations administered by the Danish Institute of Arbitration ("DIA").
Overview
Overview: advantages and disadvantages
| ADVANTAGES | DISADVANTAGES |
| Choice of arbitrator(s). Arbitrators are appointed after careful consideration of their qualifications, impartiality, and party preferences. | Limited Global Recognition. Compared to institutions like the ICC or SIAC, DIA may be less familiar to parties outside Europe. |
| Flexible Procedures. Offers both standard and simplified arbitration rules, as well as mediation options, tailored to business needs. | Court Involvement for Interim Measures. Interim relief typically requires court intervention, as Tribunals lack direct enforcement powers. |
| Cost Efficiency. Designed to be less costly and more informal than court proceedings, especially under simplified procedures. | Less Frequent Use in High-Stakes International Cases. While competent, DIA is not as commonly chosen for large-scale global disputes. |
| Multilingual Rules. Arbitration and mediation rules are available in both Danish and English, supporting international users. | No Emergency Arbitration Mechanism. Unlike some other institutions, DIA does not currently offer emergency arbitrator procedures. |
| Confidentiality. DIA arbitration proceedings are confidential. | Scrutiny. The DIA has a limited role in scrutinising awards. |
| Enforcement. Arbitration awards issued under DIA rules are recognised and enforceable internationally under the New York Convention, to which Finland is a party |
Overview: Process
| Procedural element | Details |
| Rules |
|
| Commencing Proceedings |
|
| Statement of defence |
|
| Terms of Reference |
|
| Constitution of the Tribunal |
|
| Procedural Order No. 1 |
|
| Procedural measures |
|
| Witness evidence |
|
| Fees & costs |
|
Expedited arbitrations
There is a separate set of DIA rules for the expedited arbitral process, referred to by the DIA as "simplified arbitration".
There is also a process in the regular rules of arbitration for appointment of an emergency arbitrator and initiation of an expedited arbitral process in cases concerning the securing of evidence or interim measures.
Constitution of the tribunal
The president of the Tribunal or the sole arbitrator must hold a law degree.
The members of the Tribunal are confirmed by the Chair’s Committee for an individual arbitration.
Note: Emergency Arbitrators
Where the securing of evidence or interim measures cannot wait until the confirmation of the arbitrator under the Rules, it may be done with assistance from an interim arbitrator or an emergency arbitrator. There are specific provisions in the DIA Rules governing the process of appointment of an emergency arbitrator.
Arbitrator conflicts / disclosure of interest
Before being confirmed as an arbitrator, the arbitrator must sign a declaration of acceptance, impartiality and independence.
The arbitrator must disclose in writing circumstances, which may give rise to justifiable doubts regarding the arbitrator’s availability, impartiality or independence.
Note:
The 2024 IBA Guidelines on Conflicts of Interest in International Arbitration are also applied in practice. A link to those IBA Guidelines can be accessed here.
Consolidation
Article 15 enables the DIA to consolidate arbitrations into a single arbitration at the request of a party and after consultation of the other parties. The Chair's Committee shall take into account:
1. The arbitration agreements
2. The mutual connection between the arbitrations/parties
3. The progress already made in the pending arbitration
Pleadings or memorial approach?
The Rules favour the memorial approach, in line with the continental tradition.
The parties might agree with the arbitrator or arbitral tribunal during the preparatory hearing to structure the proceedings in accordance with a pleadings approach, but this is less supported by the Rules.
Summary judgment
There is no test for summary judgment or similar early determination.
When it finds that the case has been sufficiently presented, the Tribunal will close the record in order to render an award.
Security for costs
The parties must, before the expiry of a time limit set by the Secretariat, pay to the Institute a cash deposit as security for the estimated costs of the arbitration, including the fees of the arbitrator(s) and an administrative charge of the DIA.
Note: The Claimant and the Respondent are usually asked to pay identical parts of the deposit, unless the Secretariat decides otherwise.
Disclosure of documents
At the request of a party, the Tribunal may order another party to produce documents or other evidence in its possession and that the Tribunal considers may be relevant to the case.
If that other party fails without a valid reason to comply with the order, the Tribunal may draw significance from this to the advantage of the requesting party when weighing the evidence.
Hearings
Unless otherwise agreed between the parties, the Tribunal may decide after consultation of the parties that any meetings, including oral hearings, are to be held at any place it considers appropriate taking into account the circumstances of the case.
Note: The Tribunal shall decide whether to hold an oral hearing, or whether the proceedings shall be conducted on the basis of written submissions only. However, the Tribunal must hold an oral hearing at an appropriate stage of the proceedings if a party requests it.
DIA's role in scrutiny of arbitral awards
Before rendering the award, the arbitral tribunal sends the draft award to the Secretariat of the DAI, which scrutinises it.
Note: The Secretariat may propose modifications as to the form of the award and, without affecting the Tribunal’s jurisdiction, draw the Tribunal’s attention to other issues, including issues of importance regarding the award’s validity.
Appeals
The DIA Rules do not preclude appeals
However, the Danish Arbitration Act, which regulates all arbitrations conducted in Denmark, contains provisions for challenging an arbitral award.
Further information
- Model clause
Any dispute arising out of or in connection with this contract, including any disputes regarding its existence, validity or termination, shall be finally settled by arbitration administered by the Danish Institute of Arbitration in accordance with the Rules of Arbitration adopted by the Board of the Danish Institute of Arbitration.
Drafters of arbitration clauses may wish to go into more detail and to take into account the following additions:
• The arbitral tribunal shall be composed of [one arbitrator] [three arbitrators].
• The place of arbitration shall be […].
• The language to be used in the arbitral proceedings shall be […].
• This contract shall be governed by the substantive law of […].
If you would like any further information about DIA arbitrations, please contact Christian Ploug Brink (cpb@nordialaw.com).
Global Arbitration Map detailing the arbitration landscape around the world
By clicking on a country or an arbitral body that is highlighted on the map, you can read more about the intricacies of arbitration in those areas. The map will be useful for people who are negotiating contracts and those who have disputes across the world. The map's content was written by lawyers from across DACB's international network of offices as well as friends from firms in other jurisdictions, demonstrating our global arbitration expertise.
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