Common use of Voluntary Arbitration Clause in Contracts

Voluntary Arbitration. If a dispute is referred to voluntary arbitration pursuant to clause 6.3(b)(iii): (a) the Parties must agree the terms of reference of the voluntary arbitration within 5 Business Days of the arbitration date. If the Parties fail to agree the terms of reference, each Party may submit its own terms of reference to the Arbitrator appointed under this clause 6.7; (b) the Arbitrator will be agreed between the Parties, or failing agreement within 5 Business Days of the arbitration date, will be appointed by the Australian Commercial Dispute Centre; (c) the Arbitrator must have relevant expertise having regard to the subject matter of the dispute; (d) the Arbitrator must reach a decision in relation to the dispute within 30 Business Days of the date of the Arbitrator’s appointment; (e) the Arbitrator must give reasons for his/her decision to the Parties within 5 Business Days of reaching a decision; (f) a decision of the Arbitrator will, subject to clause 6.2, be binding on the Parties except in the event of a manifest error or a mistake of law; and (g) in relation to costs and expenses: (i) each Party will bear their own professional and expert costs incurred in connection with the voluntary arbitration; (ii) the costs of the Arbitrator will be shared equally by the Parties unless the Arbitrator determines a Party has engaged in vexatious or unconscionable behaviour in which case the Arbitrator may require the full costs of the Arbitration to be borne by that Party; and (iii) all other reasonable extraneous costs and disbursements incurred by the Parties in relation to the voluntary arbitration will be shared equally.