The primary purpose of expert determination is to obtain a provisionally binding decision on a specific factual issue. It is particularly useful if the decision on the disputed factual issue enables an amicable settlement of a larger dispute. Expert determination is often used for determining rent payments, valuing properties, the sale and purchase of companies, and many other assessments of value, turnover or profit.
Parties to a dispute jointly select an independent arbitration expert (multiple arbitration experts are also possible), who enjoys the trust of both parties to resolve the disputed issue. The decision of the arbitration expert is provisionally binding. However, a court or an arbitral tribunal can set aside or modify this decision.
Parties can already agree on expert determination proceedings as a method of dispute resolution at the time of the conclusion of a contract. Alternatively, they can also agree on expert determination proceedings after a dispute has arisen.
The DIS recommends combining expert determination proceedings with arbitration. This clause should be included in contracts.