Arbitration in Denmark

With few minor divergences, Danish arbitration legislation is pretty much modelled on the 1985 UNCITRAL Model Law. In particular, it contains no requirements for concluding an arbitration agreement in Denmark. Given that the UNCITRAL model law underwent some major changes & amendments in 2006 (and Danish arbitration legislation didn’t), we should take a closer look at what it takes to resolve a dispute through arbitration in Denmark now

Denmark: Conditions for Concluding an Arbitration Agreement

Just like before, concluding an arbitration agreement is possible before or after a dispute arises. There aren’t any written requirements to be followed; when it comes to contracts with consumers, arbitration agreements aren’t applicable & are, therefore, considered invalid.

Settling an arbitration dispute in Denmark requires drawing up an agreement in writing so it can be applicable in other jurisdictions.

Denmark: Choosing an Arbitrator for Resolving a Dispute

It’s up to the parties to a dispute to decide how many arbitrators they wish to appoint. Should they fail to come to an agreement, the default rule of ‘three arbitrators per arbitration’ will apply. In cases when parties decide to opt for institutional arbitration, arbitrators will be selected by an arbitration institution of their choice.

The choice of arbitrators may only be contested if there’s reasons to believe that:

• arbitrators are prejudiced & unable to pursue an independent course of action;
• arbitrators aren’t qualified enough.

Also, parties are unable to contest the appointment of each other’s arbitrators if the reasons for this were known at the time the arbitrators were appointed. The composition of an arbitral tribunal & arbitrators’ qualifications are pivotal on an arbitral institution referred to in an arbitration clause. Denmark’s Arbitration Institute, the country’s ultimate arbitration authority responsible for looking into all controversial issues, can provide parties with a pool of candidates capable of resolving an arbitration dispute in Denmark.

Denmark: Arbitration Process

Under Danish arbitration legislation, parties to a dispute must be treated on equal grounds & provided with a chance to state their position.

At parties’ behest, arbitrators can provide interim relief; however, its enforcement is impossible. To be able to do so, parties must file a request for its enforcement with national courts.

If awards are granted in a foreign language, courts may order it to be translated into Danish.

Conclusion

What makes arbitration in Denmark very attractive is that both domestic & international disputes can be resolved here. The country’s legislation provides parties with an opportunity to choose highly qualified arbitrators capable of helping them to reach an agreement & peacefully resolve a dispute through arbitration in Denmark.