Charge introduced to cover costs of appointment of arbitrators and mediators

The New Zealand Law Society will introduce a charge for the appointment of arbitrators and mediators by the Law Society’s President from 1 July 2011.

Various contracts, agreements, trusts and other documents contain a provision stating that when the parties cannot agree on how to resolve a dispute, they will ask the New Zealand Law Society President to appoint an arbitrator, mediator or valuer.

The latest issue of the Law Society’s magazine LawTalk states that the Law Society President received 44 requests to appoint a mediator, arbitrator or valuer in 2010. He made 27 appointments, and 17 matters were settled before an appointment was made.

LawTalk states that achieving agreement between the parties on an appropriate arbitrator, mediator or valuer before a formal appointment is made typically takes as much time as making an appointment.

The new charge will cover the cost of providing the service. It will be $380 plus GST and will be payable in advance by the party applying for the appointment.

LawTalk says that some documents which use old clauses state that a particular district law society president will make an appointment. District law societies ceased to exist in 2008, and the Lawyers and Conveyancers Act 2006 provides that in such cases, the New Zealand Law Society President will make the appointment.

© New Zealand Law Society 2008