The NAI binding advice services | the procedures
When it comes to binding advisory services, the NAI offers two different types of procedures:
- Binding advice proceedings; and
- Appointment of binding advisors in ad hoc proceedings.
The main features of each procedure are outlined below.
NAI binding advice procedure
An NAI binding advice procedure is, for the most part, similar to the procedure adopted in NAI arbitration proceedings. The procedure is conducted under the NAI Binding Advice Rules. The binding advisers must be impartial and independent. Binding advice replaces court proceedings. Binding advice is flexible in the sense that the parties have more control over the course of the procedure. The binding advice given is binding on all parties. Unlike an arbitral award, binding advice is enforced by means of enforcing compliance with the settlement agreement. The court may carry out a limited judicial review of the binding advice.
The course of a binding advice procedure is shown schematically below:
The above overview of the procedure can also be downloaded as a PDF file.
NAI appointment of binding advisors in ad hoc proceedings
The parties may request the NAI to administer only the appointment of binding advisers in an ad hoc procedure. The NAI Rules for the appointment of a binding adviser in ad hoc procedures will then apply. In that case, the NAI’s involvement will end after the appointment of the binding adviser(s) and the transfer of the file. The administration fees payable for the appointment are €3,000 excluding VAT. The NAI does not set an hourly rate for the binding adviser or any other payment arrangement, and the NAI does not require a deposit from the parties.
Below you will find the link to the PDF version of the NAI Rules for the appointment of binding advisers in ad hoc proceedings.
