The Nordic Arbitration Centre

The Iceland Chamber of Commerce operates an independent arbitration institute, called the Nordic Arbitration Centre (NAC). The NAC's purpose is to provide companies with alternative means to judicatory to resolve commercial dispute in a timely and secure manner. Both the arbitration process and the Arbitral Tribunals final awards are strictly confidential.

Rules governing the proceedings before the NAC and the conduct of the arbitration:

The Arbitral Tribunals
As is customary NAC does not itself resolve disputes but administers the resolution of disputes by Arbitral Tribunals, according to the above mentioned NAC´s arbitration rules or other procedures or rules agreed upon by the parties.

The NAC's Board examines whether an arbitration agreement under its rules exists and decides prima facie whether and to what extent the arbitration shall proceed and be referred to the Arbitral Tribunal. The Board is the only authority capable of confirming and appointing arbitrators under the rules. As soon as the Arbitral Tribunal has been constituted, NAC's Secretariat, transmits the file and refers the case to the Arbitral Tribunal, provided that the Advance on Costs has been paid in full.

When the parties have not agreed upon on the number of arbitrators, the Arbitral Tribunal shall consist of a sole arbitrator. Unless otherwise agreed upon by the parties the final award shall be made not later than six months from the date of the commencement of the arbitration. The awards of the Arbitral Tribunals are final and binding for the parties. Furthermore, due to Iceland´s ratification of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards the Tribunals awards are enforceable in over 144 countries.

The Board
The NAC´s Board consists of a president, vice-president and three additional members. They are Mr. Andri Arnason (president), Mrs. Asthildur Otharsdottir, Mr. Baldvin Bjorn Haraldsson (vice-president), Mr. Eirikur Elis Thorlaksson and Mr. Gunnar Sturluson.

Model Arbitration clause
„Any dispute, controversy, or claim arising out of, or in relation to, this contract, including the validity, invalidity, breach or termination thereof, shall be resolved by arbitration in accordance with the Arbitration Rules of the Nordic Arbitration Centre of the Iceland Chamber of Commerce in force on the date on which the arbitration is commenced.“

Arbitration Cost
The Registration Fee is EUR 1.000 or the equivalent amount in ISK according to the exchange rate of the Central Bank of Iceland valid at the time of the commencement of the arbitration. The fee must accompany the Claimant´s request for arbitration, it is non-refundable and constitutes a part of the Administrative Fee.

Once the Request and the Response have been submitted the NAC board shall as soon as possible thereafter determine an amount to be paid by the parties as an Advance on the Cost of Arbitration, which shall correspond to the estimated amount of the Costs of Arbitration. Prior to rendering the final award, the Arbitral Tribunal shall request the NAC Board to finally determine the Costs of Arbitration. Upon such request, the NAC Board shall finally determine the Costs of Arbitration in accordance with the Schedule of Costs.

NAC's Board shall determine the fee of a presiding or sole arbitrator based on the amount in dispute in accordance with the table of Arbitrators´ Fees. Co-arbitrators shall each receive 60 per cent of the fee of the Presiding Arbitrator. The amount in dispute shall be the aggregate value of all claims, counterclaims and set-offs. Where the amount in dispute cannot be ascertained, the NAC Board shall determine the fees of the Arbitral Tribunal taking all relevant circumstances into account.

In exceptional circumstances, the NAC Board may fix NAC's administrative expenses and the fees of the arbitrators at a figure higher or lower than that which would result from the application of the Schedule of Costs and shall then consider the work done, the complexity of the dispute, the duration of the arbitral proceedings and any other circumstances.

For further information contact the Chamber via telephone +354 510 7100 or e-mail.

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