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Stockholm Arbitration Report (SAR)

Preview Page SAR 2004 - 2

Observations by Ole Spiermann

Subject-Matters:
(1) Challenge of the amount of arbitrators’ fee fixed by the arbitrators in an international ad hoc arbitration.
(2) VAT on arbitrators’ fees.

Findings:
(1) Under the 1972 Danish Arbitration Act, in the absence of stipulations in the Terms of Reference, or any other agreement, how the fees were to be fixed; the Arbitral Tribunal was entitled to fix its fees in compliance with the standard prevailing in international commercial arbitration.
(2) Danish tax authorities exempt arbitrators’ fees from VAT since the arbitrators do not engage in economic activity.

Parties:
Claimant: KVM Industrimaskiner A/S (Denmark)
Respondents: 1. Construction Acton Vale Ltd (Canada)
2. Maître J. (Chairman of the arbitral tribunal)
3. Professor L (arbitrator)
4. Judge H (arbitrator)

Place of Court Proceedings: Denmark

Applicable law: Danish Arbitration Act of 1972

Excerpts below are an unofficial translation of the proceedings before the court.