Expert Determination

WHAT IS EXPERT DETERMINATION?

Expert Determination is a simple means of binding dispute resolution. Unlike arbitration, Expert Determination is not governed by legislation. Expert Determination is a consensual process by which parties to a contract agree to refer matters in dispute to an independent person to decide.

The independent person has expertise relevant to the matters in dispute between the parties and is engaged to decide the disputed matters as an expert and not as an arbitrator.

The process is controlled by the parties themselves, who agree beforehand whether or not they will be bound by the decisions of the Expert.

For example, by party agreement, a determination may have effect as a recommendation to the parties or may be a binding decision akin to a judgment or adjudicator’s determination. Further, because the Expert’s authority is drawn from the agreement appointing him or her, the parties can be very specific about what they want the Expert to do or not to do.

What do MCN offer?

MCN can assist by proposing suitable experts to act as the expert determiners from our panel. We will also handle all aspects of the expert determination arrangements. These include arranging document exchange, administrating funds, resolving procedural difficulties and providing support and guidance to the parties and the Expert Determiner as required.

MCN Dispute Resolution panel members include:

Accountants
Architects
Bankers
Barristers
Engineers
Insurers
Loss adjusters
Retired Judges
Solicitors
IP experts
Surveyors and more…

How much does it cost?

MCN’s fee for providing this service is shared equally between the parties. The expert will be paid fees and expenses and their rates will vary subject to which expert is chosen. Typically rates will be in a range between INR 10000/ and INR 25000/ per day. Please contact us to discuss fees for specific cases.

Practical Applications

Expert determination has a wide range of commercial applications including:

  • Commodity supply contracts
  • Construction & Engineering disputes
  • Information Communication & Technology projects
  • Insurance industry
  • Price adjustments on take-overs
  • Rent reviews
  • Valuation of shares in private companies
  • Valuations of partners’ interests in oil and gas field projects

The opportunity to use expert determination can arise in a number of ways. The parties’ contract may provide for expert determination to resolve any disputes that arise, or the parties may decide to use expert determination to resolve an existing dispute in preference to the system provided by their contract. Expert determination can be chosen as the method of dispute resolution either for specific issues or for all disputes arising under a contract.

Mediation and Expert Determination

Expert determination is often used in conjunction with other dispute resolution systems, and it can be used as an adjunct to mediation.

This can arise where there is a need for an authority independent of the mediator(s) to give a binding decision on an important issue. The use of expert determination provides the parties with the means of resolving a part of a dispute about which they would prefer not to negotiate. Obtaining an expert’s ruling can break an impasse and allow the mediation to proceed without that blockage and it allows the mediator to remain completely impartial.

ADVANTAGES OF EXPERT DETERMINATION

Expert Determination has become a popular method of resolving disputes in a number of industries involving qualitative or quantitative issues, or issues that are of a specific technical nature or specialised kind, because it is generally quick, inexpensive, informal and confidential.

The principle attraction of Expert Determination is that it can provide a binding determination without involving many of the formalities that can beset arbitration and litigation. It also has the advantage of assisting in preserving business relationships where strictly adversarial proceedings may not.

MCN RULES AND GUIDELINES

MCN has developed highly sophisticated and proven Rules and Guidelines that provide an effective contractual process by which Expert Determination is conducted. This efficiency translates into a dispute resolution process that provides a legally binding determination to resolve disputes which minimize time loss, cost, stress and disruption for parties.

MCN recognizes that often, parties to a dispute simply require someone to provide an independent and impartial opinion on a matter. In these situations, MCN can provide you with someone who is properly qualified to determine these matters via its expert determination service.