Arbitration in Denmark

Arbitration in Denmark Steffen Pihlblad Christian Lundblad Claus Søgaard-Christensen DJØF PUBLISHING

Arbitration in Denmark

Eds. Grith Skovgaard Ølykke Carina Risvig Hansen Steffen Pihlblad, Christina Christian D. Tvarnø Lundblad, and Claus Søgaard-Christensen Arbitration in Denmark EU Public Procurement Modernisation, Growth and Innovation Translated by Steven Harris Discussions on the 2011 proposals for Procurement Directives Jurist- og DJØF Økonomforbundets Publishing Forlag Copenhagen 2012 2014 3

Steffen Pihlblad, Christian Lundblad, and Claus Søgaard-Christensen Arbitration in Denmark Translated by Steven Harris 1. edition 2014 by DJØF Publishing Jurist- og Økonomforbundets Forlag All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the Publisher. Cover: Bo Helsted Print: Ecograf Printed in Denmark 2014 ISBN 978-87-574-2779-0 Published with support from Dreyers Fond Sold and distributed in Scandinavia by: DJØF Publishing Copenhagen, Denmark Email: forlag@djoef.dk www.djoef-forlag.dk Sold and distributed in North America by: International Specialized Book Services (ISBS) Email: orders@isbs.com www.isbs.com Distributed in all other countries by: Marston Book Services Email: trade.orders@marston.co.uk www.marston.co.uk

Contents Foreword................................ 11 Chapter 1 Introduction to conflict resolution in Denmark.......... 13 1. The place of Danish law in international law.......... 13 2. Legislation on arbitration and the UNCITRAL Model Law. 14 3. Sources of law........................... 14 4. Danish contract law........................ 15 5. Introduction to the arbitration institutes and the ad hoc system............................ 16 6. The arbitration environment in Denmark........... 18 7. The structure of the court system................ 19 8. Advocates and other legal advisors............... 21 Chapter 2 The relationship between arbitration and the ordinary courts. 22 1. Introduction............................ 22 2. Defining the jurisdiction..................... 24 2.1. The jurisdiction of the courts pursuant to Section 8.. 24 2.1.1. The courts competence after the commencement of the arbitration proceedings....... 24 2.1.2 The courts competences prior to the arbitration proceedings.................... 25 3. Jurisdiction......................... 26 3.1. The courts examination of jurisdiction pursuant to Section 16..................... 26 4. The courts own examination.................. 27

Chapter 3 The commencement of arbitration proceedings.......... 29 1. Introduction............................ 29 2. The procedural rules for arbitration.............. 33 3. The rules applicable on the merits................ 34 4. The legal effects of the initiation of arbitration proceedings. 35 5. The parties............................. 35 6. The respondent s answer..................... 36 7. New claims and counterclaims................. 37 8. Preliminary proceedings at the DIA............... 38 Chapter 4 The appointment and confirmation of arbitrators.. 39 1. The number of arbitrators.................... 39 2. The party autonomy........................ 40 3. Considerations for the appointment of arbitrators...... 42 4. Special requirements for appointing the president or a sole arbitrator............................ 43 5. The availability of the arbitrator................. 44 6. Appointment of judges of the ordinary courts as arbitrators 45 7. Arbitrators independence and impartiality.......... 46 7.1. What do independence and impartiality mean?.... 47 7.2. The arbitrator s duty of disclosure............ 48 7.3. The sources of law on assessing the impartiality and independence and examples from practice....... 51 7.3.1. The Danish Arbitration Act............ 51 7.3.2. Examples from case law.............. 54 7.3.3. Other sources of law................ 63 8. The right to challenge....................... 64 9. Replacement of an arbitrator.................. 65 Chapter 5 Provision of security................... 68 1. Introduction............................ 68 2. For what costs is a deposit provided?.............. 69 3. Who pays the deposit?...................... 70 3.1. Special agreements..................... 70 3.2. If the parties do not pay.................. 70 3.3. If the respondent pays but the claimant does not.... 71

3.4. If the claimant pays but the respondent does not.... 71 3.5. Payment of additional deposit.............. 72 3.6. Both parties pay the full deposit............. 73 3.7. Payments of deposits with multiple claimants or respondents......................... 73 4. Security for the payment of legal costs etc............ 74 Chapter 6 The taking of evidence.................. 75 1. Introduction............................ 75 2. Taking of evidence prior to the confirmation of the arbitrators Interim arbitrators................. 75 2.1. Introduction......................... 76 2.2. The procedure according to Appendix 2 of the DIA Rules.......................... 77 3. Taking evidence after the appointment of the arbitral tribunal............................... 78 3.1. When should evidence be presented?.......... 80 3.2. Documentary evidence................... 81 3.3. Disclosure.......................... 81 3.3.1. Request for disclosure............... 81 3.3.2. The arbitral tribunal s decision on a request for disclosure...................... 82 3.3.3. The evidential significance of a disclosure order 82 3.3.4. Disclosure by third parties............. 83 3.4. Testimony from witnesses and the parties........ 83 3.5. Written witness statements................ 84 3.5.1. The drafting of written witness statements... 84 3.5.2. Presentation and examination of witness statements...................... 85 3.6. Oral statements....................... 85 3.7. Expert witnesses appointed by the parties........ 87 3.7.1. Drafting the reports of expert witnesses..... 87 3.7.2. Presentation and examination of reports of party-appointed experts.............. 87 3.8. Fees and reimbursement for parties experts and other witnesses........................... 88 3.9. Experts appointed by the arbitral tribunal........ 88