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
  • The current DIA Rules came into force on 13 April 2021
Commencing Proceedings
  • A statement of claim is submitted to the Institute
  • The statement must include an indication of likely witnesses and experts and any comments regarding the number of arbitrators 
Statement of defence
  • To be submitted within 30 days of receipt of the statement of claim
  • Must contain the information specified in Article 13
Terms of Reference
  • No obligation for the Institute to draw up 
Constitution of the Tribunal 
  • If the parties have not agreed otherwise, the Tribunal will consist of one arbitrator, unless the Institute – at the request of a party, or on its own motion and after consultation of the parties – decides that the arbitration must be decided by a three-person panel.
  • Where the case is to be decided by a sole arbitrator, the parties may jointly appoint the sole arbitrator. 
  • If the tribunal comprises 3 arbitrators, each party nominates 1 arbitrator and then the parties may jointly appoint the president.
Procedural Order No. 1
  • Not provided for in the DIA Rules. 
Procedural measures
  • The Tribunal shall convene a preparatory meeting with the parties as soon as possible to address issues such as the organisation of and timeframe for the remaining part of the preparatory stage of proceedings.
Witness evidence 
  • In proceedings where there is an oral hearing, witnesses may be called to give evidence, in which case there is direct examination of the witness.
Fees & costs
  • The award will state the costs of the arbitration and the proportions in which they must be borne by the parties. 
  • The parties are required to pay a deposit as security for the estimated costs of the arbitration, including the fees of the arbitrators and an administrative charge of the institute.

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). 

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