Many companies want to settle disputes by alternative dispute resolution (ADR) mechanisms and try to save time and money by avoiding costly arbitration or state court proceedings. There are various different ADR mechanisms to choose from, but often it is difficult to select the best procedure for the respective dispute.
In dispute management proceedings, an independent Dispute Manager assists parties in selecting the dispute resolution mechanism best suited for resolving their dispute in as little time as possible after the dispute has arisen.
Within the framework of the 2018 DIS Arbitration Rules (Annex 6), a set of rules for dispute management proceedings is available. These rules can also be applied independently without arbitration.
Parties can already agree on dispute management as a dispute resolution mechanism when concluding a contract by including a dispute management clause in their contract.
Parties may also agree on dispute management proceedings after a dispute has arisen or after arbitration proceedings have been initiated.
Dispute management offers many advantages:
In dispute management proceedings, the parties discuss which dispute resolution mechanism they wish to use shortly after the dispute has arisen. The Dispute Manager advises and assists the parties in this selection process. The Dispute Manager may make suggestions to the parties regarding different dispute resolution mechanisms, but he or she does not have any decision-making authority.
A party wishing to commence dispute management proceedings shall file a written application with the DIS. The DIS sends the application to the other party to obtain its consent to conduct dispute management proceedings, which the other party shall provide in writing within 14 days. Upon filing the application, the applicant shall pay the DIS Administrative Fee and a provisional advance on the Dispute Manager’s fee.
Dispute management proceedings commence once the parties have agreed to conduct dispute management proceedings and the DIS Administrative Fee has been paid.
After an informal consultation of the parties, the DIS appoints an impartial and independent Dispute Manager. In its selection process, the DIS shall take the wishes of the parties into consideration.
The Dispute Manager advises and assists the parties in selecting the best dispute resolution mechanism.
Once the parties have agreed upon a dispute resolution mechanism, the dispute management proceedings are terminated and the selected dispute resolution proceedings can commence. Dispute management proceedings are also terminated if one party or the Dispute Manager makes a statement to that effect to the DIS, or if the parties have failed to agree on a dispute resolution mechanism within two months.
The costs of dispute management proceedings are based on Article 9 of the Dispute Management Rules.
The DIS Administrative Fee is 500 €. The Dispute Manager’s fee is a lump sum of 2.500 €. The fees are subject to the applicable VAT.