RulesforExpert

Determination
Effective1May2015

RulesforExpertDetermination2015

RulesforExpertDetermination
Business disputes can often be best resolved by the parties with the assistance of an
independent third party. Expert Determination is a dispute resolution process which can
assistpartiesresolvedisputeswithoutthedelayandexpenseofgoingtocourtorarbitration.
Thepartiesenterintoabindingagreementunderwhichtheyagreetosubmittheirdispute
toapersonwithexpertiseintheareawherethedisputehasarisen(theExpert)andagree
tobeboundbythedecisionofthatExpert.TheExpertisselectedinaccordancewiththese
RulesfromapanelofExpertsprovidedbyADC.TheExpertthenconductsthedetermination
in accordance with the procedure set out in these Rules and the Expert Determination
Agreement.TheExpertmakesadeterminationwhichbindstheparties.
If the parties to a dispute invoke these Rules they will be deemed to have agreed to be
bound by the terms and conditions of these Rules and they shall fully cooperate to
participateintheExpertDetermination.
In the event that there is any conflict or inconsistency between the Expert Determination
AgreementandtheseRules:
(a)

theRulesshallprevailiftheconflictorinconsistencyrelatestoanymattersetout
inclauses5(a),8or9oftheRules;

(b)

otherwisetheExpertDeterminationAgreementshallprevail.

For more information about Expert Determination or other ADC dispute resolution
procedures,pleaseringADC(AustralianDisputesCentre)on(02)92390700.

Address:
AustralianDisputesCentre
Level16,1CastlereaghStreet
SydneyNSW2000

Email:info@disputescentre.com.au

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RulesforExpertDetermination2015

1.

NotificationofPartiestotheDispute

(a)

IfthepartiestoadisputehaveinvokedtheseRulesbyreferringthedisputetoADC
(either by consent of the parties, by way of an ADC (or Australian Commercial
Disputes Centre (ACDC), a prior registered name of ADC) Expert Determination
clause in the instrument of agreement or otherwise), the party (or parties) who
allegesthatadisputehasarisenwhichrequiresresolutionbyanExpertshallgive
writtennoticetotheotherparty(orparties)settingout:
(i)

thenatureofthedisputethathasarisen;

(ii)

theareasofexpertiseitconsidersarerequiredtoresolvethedispute;and

(iii)

abriefdescriptionoftheprojectorcircumstancesofthedispute

(theNoticeofDispute).
(b)

Within twentyone (21) days of receipt of theNotice of Dispute, the other party
(orparties)shallprovideawrittenresponsestatingitspositioninrelationtothe
dispute,including:
(i)

a statement of the areas of expertise it considers are required to resolve

thedispute;and

(ii)

anycommentsithasonthematterssetoutin(a)(iii)

(theNoticeofResponse).
(c)

Within fourteen (14) days of receipt of the Notice of Response the parties must
takereasonablestepstoconferandtrytoresolvethedispute.

(d)

If the dispute is not resolved within fourteen (14) days or within such further
periodasthepartiesagree,thentheparties,oranyoneoftheparties,shallnotify
ADCthatthedisputehasnotresolved,thatthedisputeistobereferredtoExpert
Determinationandeachpartyshallpayhalf(orsuchotherproportionasmaybe
agreedbythepartiesandADC)oftheADCregistrationfeesetoutinclause9and
Schedule1inforceonthedatethedisputeisreferredtoexpertdetermination(or
suchothertimeasADCinitsabsolutediscretionconsidersappropriate).

2.

SelectinganExpert

(a)

Upon receiving the registration fee and a copy of the Notice of Dispute and the
Noticeof Response,ADC willselecttwoormoreappropriatelyqualifiedexperts,
based on the material set out in the Notice of Dispute and Notice of Response,
andprovidethepartieswithdetailsofeachpersonsqualificationsandexperience
togetherwithinformationconcerningthefeeschargedbyeachperson.

(b)

Withinseven(7)daysofreceivingthedetailsandinformationconcerningthefees,
each party shall provide ADC with a list setting out their order of preference in
relationtotheproposedExpert.Ifanypartybelievesthatapersonwhosedetails

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RulesforExpertDetermination2015

have been provided is unsuitable to act as the Expert for some reason (such as
knownbyaparty)theyshouldnotifyADCaccordingly.
(c)

Uponreceiptofthelistsofpreferences,ADCwilldeterminewhethertheparties,
haveidentifiedapreferredExpert.Ifso,ADCwillappointthepreferredExpert.

(d)

IfthepartieshavefailedtoidentifyapreferredExpertandthepartieshaveagreed
toinvokeanothermethodofappointingtheExpert,ADCwillfollowthatmethod.
Ifthepartieshavenotspecifiedanyalternativemethod,orthealternativemethod
does not result in the appointment of an Expert within a reasonable time, ADC
will,initsabsolutediscretion,appointanExpert.

(e)

Upon appointment of an Expert, ADC will provide the Expert with copies of the
Notice of Dispute and the Notice of Response and request the Expert to advise
ADCofanyconflictofinterestoranyreasonforperceptionofbiasinthatperson
actingastheExpertresponsibleforresolvingthedispute.Ifsoadvised ADCwill
inform all the parties. If the parties still wish to continue with that Expert they
mustprovideADCwithastatement,inwriting,thattheyareawareoftheconflict
ofinterestorfactsthatmaygiverisetoaperceptionofbiasbutwishtoproceed
withtheappointmentofthatExpert(seealsoclause3).Ifthepartiesdonotwish
tocontinuewiththatExpert,ADCwill,initsdiscretion,appointanotherExpert.

3.

NeutralityofExpert

(a)

The Expert is independent and impartial and has no vested interest in the
outcomeoftheExpertDetermination.

(b)

If the Expert becomes aware at any stage of any circumstance that might
reasonably be considered to adversely affect the Experts capacity to act
independentlyorimpartially,theExpertmustinformthepartiesimmediately.The
ExpertmustinsuchcircumstancesterminatetheExpertDetermination,unlessthe
partiesagreeotherwise.

4.

ExpertDeterminationAgreement

Withinfourteen(14)daysofADCnotifyingthepartiesoftheappointmentoftheExpert,the
parties and the Expert will execute the Expert Determination Agreement. The Expert
Determination Agreement shall be generally in the form of the agreement which will be
providedtothepartiesafterthematterisregisteredwithADCatanappropriatetimeduring
the running of a case, or as amended in writing and signed by the parties and the Expert.
The Expert Determination Agreement shall be incorporated into, and form part of, these
Rules.
5.

ActionspriortoCommencementoftheExpertDetermination

(a)

Within seven (7) days of ADC notifying the parties of the appointment of the
Expert, ADC shall provide the parties with an estimate of the fees and
disbursements in the Expert Determination. Unless otherwise agreed by the
parties,theExpertandADC,withinfourteen(14)daysofreceivingtheestimate,
andinanycasepriortocommencementoftheExpertDetermination,theparties

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shall provide ADC with a security deposit in the amount of the estimate. The
securitydepositmaybeutilisedinaccordancewithclause9oftheseRules.
(b)

TheExpertmay,iftheExpertsodesires,arrangeajointmeetingormeetingswith
theparties.Themeetingisnotahearing.

(c)

TheExpertshallnotmeetseparatelywiththepartiestodiscussthedispute,unless
bothpartiesagreethatseparatemeetingscanoccur.

(d)

ThepartiesagreetocomplywithanyproceduraldirectionstheExpertmaygivein
thepreparationfororinthecourseofthemeeting.

6.

RepresentationandAttendance

(a)

Each party is entitled to be represented at any meeting and the Expert

Determination by its legal representative and other persons with information or
knowledgerelevanttotheExpertDetermination.

(b)

UnlessthepartiesandADCotherwiseagree,eachpartyshallgiveADC,theExpert
and the other party at least seven (7) days notice of who will be attending any
meetingonitsbehalf.

7.

Confidentiality

ConfidentialinformationdisclosedtotheExpertsbythepartiesorbyothersattendinginthe
courseoftheExpertDeterminationshallnotbedivulgedbytheExpert,unlessauthorisedin
writing by both parties. The Expert shall not be compelled to divulge records, reports or
other documents (electronic or otherwise) received by him or her while serving in that
capacity, or testify in regard to the Expert Determination in any adversarial proceeding,
judicialforumorbody.
8.

Liability

Exceptinthecaseoffraud:
(a)

thepartiesrelease ADC,itsofficers,employees andagentsandtheExpert from

any liability of any kind whatsoever arising out of or in connection with the
ExpertsappointmentortheExpertDetermination.

(b)

the parties jointly and severally indemnify, and will keep indemnified, ADC, its
officers, employees and agents from and against any claim for negligence or
breach of any trade practices or fair trading legislation which may arise in
connectionwithorresultingfromtheExpert'sappointmentoranyactoromission
arising out of or in connection with the Expert Determination. The indemnity is
expressly given for the benefit of the parties indicated and may be enforced by
themindividuallyifnecessary.

Thisdocumentmaybeproducedandrelieduponasacompletedefencetoanysuchclaim.

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9.

Fees

(a)

ThepartiesagreetothattheyareequallyresponsibleforthecostsoftheExpert
Determination including room hire, ADC's nonrefundable registration fee as
specifiedinSchedule1,anyfurtheradministrationfeesduetoADCasspecifiedin
Schedule1,andtheExpertsfee(ofwhich10%ispayabletoADC),andanyother
disbursements.

(b)

ThepartiesshallforwardtoADCtheirhalfshareorothersuchproportionofthe
securitydepositasrequiredbytheseRules.

(c)

EachpartyshallbearitsowncostsoftheExpertDetermination.

(d)

TheExpertandADCmaysubmitprogressiveinvoicestothepartieswhichcanbe
drawndownagainstthesecuritydeposit.

(e)

Intheeventthatthesecuritydepositisinsufficienttocovertheanticipatedfees
anddisbursementsoftheExpertorADC,thepartiesagreetosubmitsuchfurther
securitydepositasmaybereasonablyrequestedbyADCortheExpert.

(f)

IfthefurthersecuritydepositisnotreceivedbyADCwithinseven(7)daysofthe
request by ADC or the Expert, or such shorter period as ADC or the Expert
reasonablyrequires,theExpertandADCmaysuspendprovisionoftheirservices
in the Expert Determination until such time as the further security deposit is
received.

(g)

In the event that the Expert Determination is suspended in accordance with the
aboveclausethepartiesagreethatneitherADC,itsofficers,employeesoragents
nor the Expert shall have any liability whatsoever to the parties or any other
person and the parties will indemnify ADC, its officers, employees, servants and
agents and the Expert from and against any such claim by any person. This
document may be produced and relied uponas acomplete defence to anysuch
claim.

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RulesforExpertDetermination2015

SCHEDULE1
1.

2.

ForeachExpertDetermination,ADCchargesaregistrationfeeasfollows:
a.

$1,100(inclusiveofGST)whichcoversregistrationandthefirst5hoursof
administrationbyADC;or

b.

In a case where the claims of more than one aggrieved party are
consolidated, ADC may in its absolute discretion charge each party $550
(incl. of GST) which covers registration the first 5 hours of administration
byADC.

ADCmayinitsabsolutediscretionchargeafurtheradministrationfeeattherateof
$250.00(incl.GST)perhourafterthefirst5hoursofadministrationcoveredbythe
registrationfee.

Thisdocumentmaybecopied,butonlyiftheADC
Copyrightstatementbelowisincludedonthecopies:

AustralianDisputesCentre,2015

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