The Netherlands Arbitration Institute Foundation Rules 2024

31.03.2024 Tilbe Birengel

Introduction

In the wake of the evolving dynamics of commercial transactions, the Netherlands Arbitration Institute Foundation (NAI) announced new arbitration rules.[1] 2024 NAI Arbitration Rules are in force as of 1 March 2024 and will be applicable on proceedings filed on or after this date. This article explores the key features of the 2024 NAI Arbitration Rules.

The Netherlands Arbitration Institute Foundation Rules 2024
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Background:

NAI has been an active arbitration institution in practice for 75 years. An overview of previous arbitration rules dated 2010[2] and 2015[3] shows NAI’s consistent work to keep up with modern techniques and procedural developments. 2024 updates bring more efficiency, strengthen the independence and impartiality of arbitrators, and take further steps in sustainability and diversity.

Efficiency: 

At the heart of the 2024 NAI Arbitration Rules lies a commitment to responsive case management, aimed at expediting proceedings while ensuring fairness and equity. The 2024 rules introduce a Case Management Committee and expedited arbitration. It is possible for NAI to directly appoint arbitrators in cases parties fail to agree on the appointment. This contributes to not only efficiency but also diversity.[4]

It introduces provisions for a mandatory case management conference within three weeks of submission of the file to the tribunal, and a fixed mid-stream conference after submission of the statement of defense. 

The 2024 edition gives the arbitral tribunal the authority to make an early determination for manifestly inadmissible, unfounded claims at an early stage. It is now possible to resolve disputes of the same parties stemming from multiple contracts subject to arbitration in a single proceeding. 

The 2024 edition sets Amsterdam as the default seat of arbitration, in the absence of parties’ choice on the matter. 

The rules cover scrutiny of draft arbitral awards by the NAI, which serves for efficiency by reducing basic computational mistakes.

Safeguards on Transparency, Arbitrator Independence and Impartiality:

The rules set forth a requirement on disclosing third-party funding similar to arbitration rules of major institutions such as ICC and VIAC. Accordingly, parties shall disclose the names of funders financing claims or counterclaims. 

The 2024 edition improves regulation on the challenge of arbitrators particularly and sets a special committee charged with the matter. It sets further rules to strengthen the arbitrator’s declaration of independence, impartiality, and availability. It makes it possible for parties to submit comments on the matter. It requires communication of co-arbitrators with the NAI with regard to the appointment of an arbitral tribunal chair.

Sustainability: 

In a nod to the growing imperative of environmental sustainability, the 2024 NAI Arbitration Rules embrace eco-friendly practices to reduce the carbon footprint associated with arbitration proceedings. The rules facilitate communication only via the NAI arbitration platform or e-mail. Embracing digital tools brings more efficiency, and accommodates the diverse needs and preferences of parties, particularly in an era where remote collaboration has become increasingly prevalent.

The 2024 edition advocates for greener arbitration practices, such as minimizing paper usage, and underlines respecting sustainability during the conduct of the proceedings. By prioritizing environmental responsibility, the rules align arbitration with broader sustainability goals, contributing to a more eco-conscious approach to dispute resolution. 

Conclusion: 

The 2024 NAI Arbitration Rules follow a forward-thinking approach to arbitration, characterized by efficiency, technological integration, environmental, and societal consciousness.

References
  • The Netherlands Arbitration Institute Foundation Rules 2024, for access: 2024 NAI Arbitration Rules - NAI, (Date of Access: 27.03.2024)
  • The Netherlands Arbitration Institute Foundation Rules 2010, for access: NAI-Arbitration-Rules-1-January-2010.pdf, (Date of Access: 27.03.2024)
  • The Netherlands Arbitration Institute Foundation Rules 2015, for access: 20230828-NAI-Arbitration-Rules-and-Explanation-1.pdf, (Date of Access: 27.03.2024)
  • Marc Krestin, Doortje van Leeuwen, “The 2024 NAI Arbitration Rules: Better, Faster, Greener!”, Kluwer Arbitration Blog, for access: The 2024 NAI Arbitration Rules: Better, Faster, Greener! - Kluwer Arbitration Blog, (Date of Access: 27.03.2024)

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