The parties may agree on a number of binding advisors themselves, in the absence of which the Netherlands Arbitration Institute will determine the number. The NAI determines the number of binding advisors at one or three. In doing so, the NAI looks at the financial interest of the case, as well as the complexity of the dispute and the preference of each individual party.
The parties are first given the opportunity to appoint binding advisors themselves. If one binding advisor must be appointed, the parties jointly appoint that binding advisor. If multiple binding advisors must be appointed, the applicant and respondent each appoint one binding advisor. If three binding advisors must be appointed, the two party-appointed binding advisors jointly appoint the third binding advisor, who is chair of the tribunal. If the parties do not appoint, the binding advisors are appointed on the basis of the list procedure. Under the list procedure, the NAI selects from its database the binding advisors who are suitable for a specific procedure and adds these names to a list. This list is sent to the party or parties that failed to appoint a binding advisor in good time. The parties may object to the appointment of the proposed binding advisors and number the remaining names in order of their preference. Based on the returned lists, the NAI then appoints the binding advisor or binding advisors. If no appointment is possible based on a comparison of the returned lists, the NAI will appoint directly. All binding advisors, including the binding advisors appointed by the parties themselves, must be fully independent and impartial.
The NAI selects binding advisors for a certain case based on the request for binding advice and the short answer. It will take account of the wishes of all parties insofar as possible. The NAI has a large database containing the names of more than 500 people who have specific expertise and extensive experience in many fields. The parties may also agree another manner of appointment, e.g. immediate appointment of binding advisors via the list procedure.
Binding advice is a method of dispute resolution which is used in the Netherlands particularly.
Binding Advice Rules